Published Job Order Contact Unit Price Data – Objective, Independent, and Cost Effective – UPB

By peter.cholakis@verizon.netjob order contract process, Job Order Contracting, Job Order Contracting - Education & Training, job order contracting services, JOC, joc software, upb

Objective, Independent, and Cost Effective Line Item Cost Data for Job Order Contracting – Unit Price Book – UPB

job order contract unit price book upb

Objective, Independent, and Cost Effective line item cost data is critical to the success of any JOC Program.

Here is a Job Order Contract Unit Price Book Checklist.

  • Number and type of line items that will cover 90% of the tasks anticipated for the duration of the Job Order Contract (typically 30,000-60,000 unit price line items, although most JOCs use far fewer in actual practice)
  • Systematic arrangement of titles and descriptions  that describe construction work tasks in common terms that are easily understandable.  Abbreviations 
    should be limited, and follow a standard convention when used.
  • MasterFormat (registered trademark of the Construction Specification Institute) should be the basis of data architecture.
  • The level of cost detail should incorporate Material, Equipment, and Labor details as appropriate to the task, and a total not incorporation overhead & profit.
  • All costs should be researched locally and not dependent upon factors.
  • Demolition line items should be incorporated and organized per section (MasterFormat).
  • Line item “modifiers” based upon quantity, type of material, and/or site/work location, etc., should be included and listed under the “parent” line item.  This parent/child organization simplifies locating like items when preparing a construction cost estimate.
  • The unit price book should be updated annually in terms of costs.
  • Additional line items should also be incorporated annually if certain non-prepriced are found to be used repeatedly, and if allowed by the Job Order Contract and agreed upon between the owner/contractor.  (A non-prepriced line item is a unit price line item that is not included within the JOC UPB, however, required to accomplish a particular project.
  • Labor based upon Davis-Bacon wage rates (for Federal Government projects and many other public sector Job Order Contracts).

job order contract unit price book, upb

Equally important are competent internal and external participants, ongoing training, and high levels of collaboration and transparency.

Many JOC Programs have strayed away from core values and benefits associated with Job Order Contracts, and have virtually removed owners from direct daily participation.  Consultants run JOC programs in some instances may actually receive a fee to approve/disapprove JOC projects.  This type of fee-based”JOC outsourcing” is based upon construction volume, and respects a clear conflict of interest and an opportunity for fraud.

Obtaining truly beneficial outcomes from Job Order Contracting on a consistent and long-term basis requires direct owner/contractor interface, collaboration, and transparency.   While it’s a performance-based reward approach, shared risk/reward should be among the owner and the contractor, versus an intermediary such as a consultant.

 

via www.4BT.US – Helping Owners, Contractors, Subcontractors, Architectural&Engineering and Contract Management firms develop, deploy, and execute best management practice Job Order Contracts.