All JOC Programs should require early and ongoing communications, standardized locally research cost data, and collaboration to drive productivity, quality, and overall construction outcomes.

Job Order Contracting (JOC), the use of the OpenCost Approach can consistently deliver over 90% renovation, repair, and construction projects on-time, on-budget, and to the satisfaction of all participants and stakeholders. This level of performance is virtually unattainable using traditional methods.

It’s long been accepted that Owners need to increase their levels of competency and leadership.

Efficient facilities management can only become a reality under the direction of competent and experience teams of professionals and the associate use of appropriate LEAN Construction Delivery Methodology, Life-cycle Asset Management Strategies, appropriate supporting tools, technology, and information/data. Current, locally researched, and detailed construction cost data is a requisite element in this process.

The 4BT OpenCost Methodology specifically leverages the detailed knowledge of decades of line item cost estimating experience to create actionable OpenCost commercial construction cost databases support by an open collaborative cloud platform, and then combines both with LEAN collaborative best management practices. The result is high data quality and availability.

Traditional methods of seeking bids from construction contractors will generally result in a variance of +/- 25%. That said, if one looks at individual trades and associated labor costs, the variation can easily be +/- 50%. The OpenCost Methodology significantly reduces this variation to +/- 5% through an integration of locally researched labor, material, and equipment detailed line item costs and attention to crew composition and productivity.

OpenCost Methodology drives collaboration, information sharing, transparency, and continuous improvement to mitigate cost variation and enable information validation.

The continued use of inexperienced facilities management, project managers, construction cost estimators, etc., will only add to the problems cause by the use of erroneous data, and unproductive processes.

On the other hand, assuring the use of common, standardized terms, definitions, construction task, and costs data measurable improves the chances of greater overall success.

JOB ORDER CONTRACTING ( JOC ) FUNDAMENTALS

What is Job Order Contracting?

Job Order Contracting is a collaborative construction delivery method, also termed an alternative project delivery method, and a type of Integrated Project Delivery, using an Indefinite Delivery, Indefinite Quantity (IDIQ) contract for a specified period. Based upon LEAN management practices, a Job Order Contract …

provides an “on-call” contractor.
targets renovation, repair, sustainability, maintenance, and “minor” new construction projects,
has specified term, generally up to five years (one year, plus option years),
establishes project and/or task order pricing based a coefficient and locally research Unit Price Book (UPB), and
relies upon existing owner construction specifications or may have a set of specifications linked specifically to the UPB.

Job Order Contracting Users

Federal Government
Education
Healthcare
Transportation/Mass Transit
State/County/Local Government
Utilities
Private Sector

Glossary – Job Order Contracting

JOC – Acronym for Job Order Contracting (also called TOC -task order contracting and DOC-delivery order contracting)
IDIQ – Indefinite Delivery/Indefinite Quantity
UPB – Unit Price Book
UPG – Unit Price Guide
Coefficient – Multiplier applied to a construction cost estimate derived for the JOC UPB, generally ranging from 0.80 to 1.20. Generally, includes contract overhead and profit, though specific items to be included in the coefficient are noted in the Job Order Contract. There may be separate coefficients for normal / non-normal hours and other conditions.
Task Order, Delivery Order or Job Order – Individual construction projects performed under the umbrella Job Order Contract.
Non-prepriced item (NPP) – A construction task item not within the UPB. Generally, limits are imposed to the use of NPP items to a level of 10% or less of the total value of any specific JOC task order.

Job Order Contract Considerations

Primary goal(s)
Term (Generally 1 year with additional options years, up to five years total)
Maximum contract value (annual and overall total)
Maximum individual project size
Minimum payment to contractor
Available Owner resources and level of competence to manage
Deployment method: Owner-managed, Cooperative, or Outsourced
Best value selection/procurement capability
Availability of experienced JOC contractors
Key performance indicators (KPIs)
Availability of ongoing training
Supporting technology
Selection of UPB
Provisions for updating the UPB
Management of non-prepriced items (NPP) to cover unforeseen requirements
Regular JOC program audits
Items to be included in the co-efficient
Number and type of co-efficients
Provisions for bonding, liquidated damages, change orders, progress payments, warranties, and payment withholding.

Uses for Job Order Contracting

Projects that are time sensitive
“Minor” construction projects (generally under $1-2 Million)
HVAC and Electrical
Routine repairs
Renovations of all types
Upgrades to ADA standards
Emergency repairs
Site work and utilities
Parks and playgrounds
Upgrade landscaping
Classroom additions
Complete new buildings
Replace flooring
Roofing
Communications
Fencing

Benefits Job Order Contracting

90%+ of projects on-time, on-budget, and delivered per expectations
Greater satisfaction among participants and users
Access to on-demand construction services
Significant reduction in change orders and legal disputes
Long term owner-contractor relationships
Improved productivity
Greater cost transparency
Cost visibility
Less “down-time” and fewer disruptions to building/asset users
Reduced risk and variance
Higher WBE/MBE participation
Greater percentage of dollars spend upon contruction versus administration/waste

Job Order Contract Workflow

Initial Concept / Scoping Session
Internal Budgeting / Estimate
Contractor Proposal Request
Joint Site Visit
Contractor Estimate
Estimate Preparation
Owner/Contractor Estimate
Comparison
Proposal Review / Negotiations
Notice to Proceed (or Cancellation)
Project Kickoff Meeting / Job Start
Regular Owner/Contractor Progress Meetings
Final Inspection / Punchlist
Close Out

Initial Scoping

Assure all interested parties, participants, stakeholder are present
Funding availability and compliance
Establish project goals
Determine Level of design services required
Review existing plans or estimates
Building systems and quality of materials
Identify client, contractor, and building user responsibilities
Evaluate potential impacts to existing operations, including life/safety
Determine project schedule and major milestones
Safety, security and hazardous material issues
Timing
Permits
MBE/WBE goals
Review qualification and assumptions
Revise the scope as necessary
Confirm start/completion

JOC Estimates

Select UPB – unit price book
Contractor and Owner jointly scope and provide quantities of
Contractor creates an estimate, and Owner prepares internal estimate or Internal Government Estimate (IGE) – for all projects or for projects over an established dollar value).
The totaled UPB line item estimates in the estimate are multiplied by the coefficient(s) designated and accepted.
A localization factor and/or economic index factor may also be applied, if applicable, though not recommended. Unit price line items should be locally researched.
Contractor applies approved coefficient to estimate total

JOC Resources

Example:

Total of UPB Line Items	$45,328.10
Multiply by Coefficient (1.05)	$47,594.51
Cost to Owner	$47,594.51

Job Order Contacting & LEAN Construction Delivery – KEY CHARACTERISTICS

Focus is upon OUTCOMES
BEST VALUE procurement
Shared RISK/REWARD
Mutual TRUST/RESPECT
Skilled, competent TEAMS
COLLABORATION
Financial TRANSPARENCY – Unit Price Book
Common TERMS, DEFINITIONS
LEAN management practices
Metrics – Key performance indicators – KPIs
Regular AUDITS
Continuous IMPROVEMENT
Ongoing (annual) TRAINING
Written OPERATIONS/EXECUTION MANUAL as part of CONTRACT
Supporting TECHNOLOGY

Job Order Contacting & LEAN Construction Delivery

Focus upon outcomes
Owner must understand JOC and provide leadership – owner has a lot involvement in the job
Not simply another price quote for the work
Not a free estimating service
Allow adequate time for the process
Contractor invests a lot of front end effort
Owner can expect excellent execution of the work
Ensure that all owner & contractor stakeholders have had sufficient input into the job
Ensure owner & contractor consensus on scope, schedule and cost
Owner & contractor must each holdup its end of the bargain
Successful JOC is a non-adversarial relationship
JOC virtually eliminates legal disputes and change orders

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