Here’s just one example of what’s WRONG with some JOC Programs. Do you agree?
“During the period of October 1, 2016 to December 31, 20 16, Gordian License Fee and project management fees totaled $654,744 or an overall average of 7% of the total construction contract value of $8,805,985 during this reporting period. This fee is lower than the industry standard of 10% for Construction Management fees. TGG services allow the County to implement a higher volume of maintenance and repair projects which would otherwise not be possible due to limited project management staff time.”
– Source: Monterey County 168 West Alisal Street, 1st Floor
Salinas, CA 93901 831.755.5066 Capital Improvement Committee Legistar File Number: 17-0342 – Job Order Contracting from the Resource Management
Agency-Public Works and Facilities for the period ending December 31, 2016.
There are several things “wrong” with the way Job Order Contracting has been implemented in California. There are also several issues I have with the above statement. Do you agree, disagree?
- Job Order Contracting is NOT “construction management”, and any fees should NOT be so compared. Job Order Contracting IS a LEAN and integrated construction delivery method and a procurement method.
- A FEE paid to a JOC consultant, based upon a percentage of construction volume, is a DIRECT CONFLICT OF INTEREST and represents a POTENTIAL FOR FRAUD, if the JOC consultant is indeed managing the construction and directly/indirectly approving contractors and/or projects.
- Paying 7% for this service, in addition to the above factors, is indeed excessive, and lower cost options are available to provide equivalent or superior services.
- Low bid is NOT fundamental element of JOC. If awards are made using lowest bidder and procurement are not award on a BEST VALUE basis, it’s NOT JOC, period.
Your thoughts on what’s WRONG with some JOC Programs?