Leveraging JOC as a SYSTEM not simply a Procurement Tool provides significantly greater benefits while also reducing costs.
Many, if not most, current Job Order Contracting Programs simply use JOC to speed the procurement of repair, renovation, maintenance, or new construction activities. This practice not only limits benefits possible from JOC negatively impacts cost management capabilities, and even sets the stage for potential fraud.
#1 Job Order Contracting is a form of Integrated Project Delivery (IPD) and should integrate planning, procurement, and project delivery teams in an early and ongoing basis throughout project lifecycles. Far too often, procurement uses the tool to simply push projects through faster and even outsource the management of the JOC Program. Owner planning, procurement, and project teams should be involved in every JOC activities.
#2 Paying a percentage fee related to construction volume is very costly presents several conflict of interest. For example, a “JOC consultant” is being paid a fee based upon a dollar value of a project that they are recommending for approval.
#3 JOC Program should be fully collaborative and financially transparent, and not pit Owners against Contractors.
Reduce Rework, Optimize Jobsite Productivity, and Lower Costs with Systems thinking-based JOC.
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