What’s in a JOC Coefficient should be specifically detailed in the Job Order Contract Request for Proposal.
Here’s a listing of what is typically included in a construction contractor’s Job Order Contract coefficient…
- Contractor’s overhead and profit
- Subcontractors’ overhead and profit
- Insurance
- All costs associated with bonding (specifically including bond premiums)
- Employee payroll taxes, insurance, and fringe benefits
- Business taxes, contributions, memberships, corporate headquarters support (legal, financial, etc.)
- All waste and excess material
- Sales tax on material and equipment costs
- Clean up
- Mobilization and close out for the total contract and each task order
- Compliance with environmental laws (overhead [indirect] costs associated with performing work in compliance with EPA/OSHA regulations, including obtaining any necessary licenses and permits, reporting requirements, etc.)
- Traffic and work site signs and barriers
- Project management and supervision
- Quality control
- Office management and equipment
- Depreciation of mobile office(s)
- Interest associated with funding of equipment and payroll
- Submittal preparation
- As built drawings
- Permits, licenses, and fees
- Other risks of doing business (i.e. risk of a lower than expected contract dollar value, risk of a high inflation cost if factors are bid for option years, risk of poor subcontractor performance and re-performance)
via Four BT, LLC – The LEAN Job Order Contracting Solutions Provider