Frequently Asked Questions
#1 Why should I bother, I already have a JOC Program?
I totally understand, but let us show you how others have saved 75% to 10x in program administration costs, while able to triple their annual JOC program volume.
#2 I have seen other cost estimating software and databases, and they appear less expensive, why should I consider your solution?
Generic cost estimating software doesn’t address the processes, workflows, and information requirements of a JOC Program. For example, a JOC Program involves; Locally Researched Construction Cost Cata, Program Management, Contract Management, Proposal/Bid and Estimate Management, Automated Proposal Comparisons, Collaborative Proposal Reviews, Project Management, Work Order Management, Document Management, WBE/MBE Tracking, Contractor Management, Issues/Task Management, Team Management, Site/Location Management, BIM Integration….
#3 Will this work if I don’t have relationships with JOC contractors in my area?
A good JOC contractor needs to be service oriented, willing to go the extra mile to make long-term relationships work for both parties. Experience with JOC is not as important as a contractor’s willingness to be a true partner. We will work with you to market your JOC Program to local contractors, and provide all the training needed for them to excel.
#4 What if I don’t have it in my budget to set up a JOC Program, isn’t it easier to just pay for a JOC Program on a percentage fee out of my operational budget?
The cost to set up a JOC Program is likely in the $60-$80K range for the Owner. Contractors generally pay for their own software and training. The cost of the program generally is recaptured in the first few projects due to fewer change orders, more refined scopes of work, and other efficiencies. Furthermore, a percentage fee JOC Program can cost 10x more in the long run. That excessive cost would be hard to justify for any public sector professional.
#5 Will this work if I have no experience with JOC?
Yes. The only factor that matters is that you and your leadership understand and are willing to support the fundamental principles of JOC. Support services and training will enable your team to build upon its current expertise and learn JOC-specific activities.
#6 I, and my team, really don’t like change. Isn’t there risk involved in changing from our current processes?
All people are wary of change. That said, the real question is what will happen if you don’t change? How long can you or your organization continue to waste funds and allow deferred maintenance to grow unchecked because you are spending too much on unscheduled activities?
#7 Do I need to make a full change of my repairs, renovation, and new building activities?
You can phase in as many JOC projects and work orders as you’d like. There is no minimum amount of work that you need to do. Many first time JOC users begin with an total annual spend of about $2M-$3M with an average individual JOC project of about $150,000.
#8 Are long-term contracts required?
Our JOC tools, software and cost data, are based upon an annual subscription. Services are provided on an as needed, per requirement, basis. There are no long term commitments. A JOC Program is usually awarded to JOC Contractors for one year, with annual renewals or option years (at the owner’s sole discretion) spanning up to four additional years. Throughout this timeframe, however, there is generally no minimum amount of construction volume required of the owner.
#9 What if I have multiple locations throughout the city, county, state, or country? Will this work for me?
Generally, “yes”, based upon your organization and applicable statutes. We have many clients that have multiple sites to be served. In these cases, there may be multiple unit price books needed to account for local market conditions, and/or appropriate local contractors.
#10 My organization is pretty conservative, how can I convince my boss to start a JOC program with you, or switch my existing one?
It’s really quite simple. If you are happy with your current situation, you wouldn’t be considering us. You already know you need to “do more with less”, and better serve your organization. We can help you with information to support your “business case”. More importantly, take a look at the backgrounds of our team. Look at who we currently are serving.
#11 Our organization is in a different time zone, how do I get support?
First and foremost, our goal is to simplify JOC. We have done just that. Our technology is hosted on world class servers with amazing backup capabilities. We have people on the east coast and west coast, and mountain states and are capable of providing 24/7 support as required.
#12 Are there special skills or additional criteria required to establish and manage a successful JOC Program?
Owners must have leadership skills and a degree of competency with respect to LEAN collaboration construction planning, procurement, and project delivery. Unlike traditional construction procurement and project delivery, JOC operates optimally within an environment of mutual trust and respect, shared risk and reward, and a focus upon best value outcomes for all participants and stakeholders. The ability to build and understand detailed line item cost proposals and estimates is also required. Remember, people and process come first!
#13 How many JOC Contracts do I bid?
You can develop and bid a single “general construction” contract or several contracts based upon geographic area and/or type of work required, for example: Texas JOC, Texas Region 1 JOC, New Mexico JOC, Roofing JOC, Paving JOC, Fencing JOC, Electrical JOC.
#14 Are JOCs awarded via lowest bidder or best value?
Owners may elect to award JOCs to responsible and eligible bidders bidding the lowest coefficients per the solicitation. We, however, suggest that a best value approach be used. This approach considers the bidders previous work history as well as the coefficient.
#15 How are individual JOC Projects (or work orders) priced?
Pricing for individual projects/work orders are based upon the 4BT OpenJOC Unit Price Book and the subsequently applied contractor’s JOC coefficient. The coefficient (or multiple coefficients), serve as an adjustment factor to the applicable unit price book(s) approved for the JOC. For instance, a coefficient of 1.20 would represent a 20% “markup” to the UPB. The coefficient generally includes all project general conditions as described in the contract, such as general supervision, overhead and profit. Projects are scoped and priced as part of the process described in the contract. Once a project is approved, the price becomes a lump sum price for the project.
#16 How often should a unit price book, UPB, be updated, and how?
A unit price book must be updated as stipulated in contract documents. That said, best management practice is to update the UPB at least annually for labor, material, and equipment updates, including the addition of any approved new line items. Updating labor on a more frequent basis and adjusting materials based upon major shifts should also be considered.
#17 Is the 4BT OpenJOC Unit Price Book similar to a national average price book and the associated use of location factors?
No. The 4BT OpenJOC Unit Price Book has been locally researched for the specified usage area(s). We do not recommend the use of commercial and/or national average reference price books. National average cost books introduce gross cost errors.
#18 What items should be included in a JOC estimate?
All JOC estimates should include all allowable costs, which a prudent and experienced contractor would expect to incur. Any design costs (if applicable) are the responsibility of the JOC contractor as well as all construction efforts needed for project completion. Cost must include consideration of performance specifications, deliveries, site preparation, access, cleanup, and other such items not included in the plans and specifications but would be part of the costs a prudent contractor would expect to incur.
#19 What are prevailing wage requirements?
Labor rates required for the JOC Program are typically specified in the JOC RFP and associated contract. Prevailing wage rates represent an average wage rate in a particular geographic region. How prevailing wage rates are calculated, and which prevailing wage rate source to be used, should be specified. Davis-Bacon Wage Rates are required for federal government projects and/or those using federal funds. They also generally provide a reasonable approximation of local prevailing wage rates. It is critical that labor is locally researched and that national average data not be used. States may also publish prevailing wages rates to be used for all related state, county, or local JOC programs.
#20 Do Job Order Contracts support Minority and Women-owned businesses?
Studies of JOC in the federal government have shown that JOC increases opportunity for small and disadvantaged businesses. The type of work performed under a JOC should provide opportunities for emerging businesses, whether they serve as prime contractors or trade subcontractors. Note that not all JOCs allow for subcontractors.
#21 What differentiates your products and services from your competitors?
We founded 4BT in 2016 upon seeing a clear need to rethink, reshape, and rebuild JOC. We believe… 1. LEAN planning, procurement, and project delivery processes should be deployed in a manner that is mutually beneficial to all participants and stakeholders, 2. Full cost visibility and transparency and compliance must be provided, 3. JOC solutions should not burden users with excessive fees and costs, and 4. Cost data should reflect local market conditions.
#23 Where are you located and in what region of the US do you conduct business?
No. The 4BT OpenJOC Unit Price Book has been locally researched for the specified usage area(s). We do not recommend the use of commercial and/or national average reference price books. National average cost books introduce gross cost errors.
#24 What training do you offer, and do you provide free software trials to real property owners?
4BT offers free trials of our SAAS technology, inclusive of our locally researched construction cost data to any owner interested in a JOC Program. Multi-level, and multi-level training is available including on-site, virtual, regional, advanced and introductory.
#25 Is there a specific project management software or estimating software that works best with your data?
Our 4BT SaaS technology stands can provide full “data dumps” in a standardized format for virtually any systems. That said, our technology can fully support your JOC Programs operational requirements, including Program Management, Contract Management, Proposal/Bid Management, Estimate Management, Document Management, Location Management, Building Management, Asset/Component Management, and Contractor/Subcontractor Management, as well as the ability to integrate BIM information and view BIM models.
#26 Do you sample contractors pricing in any given area to confirm accuracy of your cost data?
Yes, we sample local contractor pricing. We research all aspects of local market conditions using our 4BT cost research methodology. We research local labor trades inclusive of fringes, material costs, and equipment costs within targeted areas. If we find a variance of 5% or greater in areas in which work is being done, we create a separate UPB.
#27 Does your software take into consideration of how contractors prepare a coefficient?
Yes. We believe a properly researched UPB should enable a contractor to submit a co-efficient of greater than 1.0. For example, if a UPB should reflect the local cost of construction minus contractor profit and overhead. Thus a contractor's bid co-efficient for standard hour construction is generally in the 1.10-1.30 range.
#28 What additional support services do you offer?
Our customers include real property owners and managers, builders, cooperatives, and private companies, therefore our support services vary. A partial listing of our support services would include:
JOC Program Development
JOC Program Oversight, Including Formal and Informal Compliance Audits
JOC SaaS Technology Customization
Multi-level and Multi-format training
24/7 JOC Technology and User Support Services – Online, Phone, Email.
#29 Does your software factor for multiple coefficient usage? (Example: Standard Hours, Non-Standard Hours and Non-Pre-priced Items)?
Yes. Our SaaS technology supports multiple co-efficients and then associates and locks co-efficients to specified JOC contract and awarded contractors. Non-prepriced items are automatically tracked and in terms of both identification and usage.
#30 Non-Pre-priced Items tend to be commonly used. What is the capability of your software to incorporate non pre-priced items? Is it included in your service or an additional service charge?
Our technology enables the creation and use of non-prepriced line items. Most importantly the UPB itself is locked and can only be changed per contract specifications. Additional non-prepriced line items can be easily created from existing UPB line times at a detailed level, include changes to material, labor, crew, and equipment costs. All changes at noted and maintained perpetually. All non-prepriced line item are automatically tagged as such, and there used is track and calculated. For example, a proposal will note the dollar are percentage of non-prepriced line items as well as highlight their individual usage. All of the above are included within our standard pricing.
#31 What are the reasons for the failure of a JOC Program and/or poorly performing JOC Program?
The primary reason that a JOC Program fails to deliver significant benefit to an owner and its participants is poor initial goal setting and poor initial program set up and training. Proper expectations must be established for owners, participants, and stakeholders. The goal of a JOC Program should not be solely to expedite procurement of construction projects, but rather, more efficient project planning, procurement, and project delivery on an overall basis. Failure to require initial and ongoing (at least annual) training is another reason for poor performance. A JOC Program should require regular independent third-party audits., the lack of which has created significant issues. Lastly, the improper or excessive use of JOC consultants can set the landscape for fundamental performance, cost, or legal issues. For example a JOC consultant should never be compensated based upon a percentage of JOC construction volume if the consultant is responsible for approving JOC projects.
#32 How are the cost data items maintained and how often are they updated? Do they become a normal line item priced annually in future annual price book revisions?
The 4BT UPB is changed based upon JOC contract requirements. That said, we recommend that labor be updated quarterly, and the UPB be updated annually for mutually approved (owner and 4BT) line item additions. Approved annual additions of line items become part of the standard UPB for the associated JOC.
#33 Can your unit price book be localized by market values directly related to a specific City without using historical national averages but rather localized averages based on a specific location’s historic cost and not adjustment to a dataset?
4BT’s UPB’s and cost databases are always locally researched. We do not use national averages or cost factors. The use of national averages and cost factors can introduce significant error in cost data.
#33 What is a unit price contract?
A procurement for construction services whereby the contractor is paid for the actual quantity of each line item performed as agreed upon by the owner. Each unit price includes all labor, material, equipment, overhead, and profit attributable to that scope of work.