It’s important to recognize that Job Order Contracting (JOC) is not simply a way to speed projects through procurement “red tape”. In order to obtain the major benefits of JOC* the following are required.
- Change management – Moving from traditional ad hoc day to day practices to robust workflows based upon proven LEAN processes.
- Owner leadership and competency – JOC is a collaborative process, however, owners provide leadership. With direct owner involvement, for example the excessive long-term reliance upon JOC contractors to “manage” the JOC, the program will not deliver a BEST VALUE outcome.
- Ongoing process – All parties must understand that JOC is an adaptive process with a focus upon continuous improvement.
- Actionable Information – A common set of terms and definition and a locally researched detailed line item unit prices JOC construction cost database (versus a “national average” reference cost book with or without cost factors or other economic indices).
- Enabling technology – While not a driver, appropriate technology can help to reduce deployment costs, improve consistency and productivity, as well as provide a mechanism for JOC Program oversight. Purpose built cloud technology should included FULL document management capability (document check-in/check-out and change monitoring), system access monitoring, as well as program, project, estimate, contractor/subcontractor, and UPB management.
*JOC Benefits – Consistent delivery of on-demand, quality projects repair, renovation, maintenance, sustainable, and minor new construction projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.
Communicating and testing new techniques, as well as a consistent representation of Job Order Contracting are extremely important. Motivating and sustaining commitment with respect to ALL participants, internal and external, and doing so with targeted and ongoing training and messaging appropriate to the individual and professional area are equally vital.
Keep terms and definitions consistent and simple, by using an easy-to-understand common data environment (CDE). A JOC unit price book (UPB) is the key element in this regard. It’s important to note, however, that all JOC UPBs are not the same. Do your homework. Has the UPB been locally researched for labor, material, and equipment, or is it simply a national average reference cost book using a location factor or some sort as an attempt to provide some level of localization? Factors are simply not accurate enough. Does the UPB contain line item modifiers to account for quantities and/or work methods? Line item modifiers are a “must” for JOC. Without locally researched cost data and/or line item modifiers, estimate errors in the range of 30%-40% are likely. Is the unit price book updated regularly for labor costs and totally each year labor, equipment, and material, or does it simply apply an economic adjustment factor, such as the “ENR construction cost index”(TM). Again, the application of “generic factors” easily introduces significant errors in construction cost estimates. The 4BT OpenJOC(TM) Unit Price Book and the OpenJOC Approach(TM) assure that the JOC UPB is locally researched, updated appropriately, includes line item modifiers, and uses industry standard terms and definitions, written in plain English.
The 4BT OpenJOC LEAN process improves culture, process, level of participant involvement, communicates organizational values, and delivers best value.. all with a focus upon client-defined desired outcomes.
OpenJOC(TM) LEAN Job Order Contracting was specifically developed to enable any organization to consistently deliver quality repair, renovation, and minor new construction projects on-time and on-budget, while capitalizing upon the experience and benefit of long-term internal and external mutually beneficial relationships, ongoing training, and focus upon continuous improvement.
Learn more… info@4bt.us