What is a JOC Unit Price Book:
A JOC Unit Price Book, also referred to as a JOC Unit Price Guide, is a list of detailed line time construction tasks and costs typically expected to account for at least 90% of the renovation, repair, maintenance, and/or construction costs associated with a Job Order Contract.
While some unit price books contain hundreds of thousands of line items, most commonly encountered Job Order Contract tasks associated with facilities use five to ten thousand line items or less on a routine basis. The JOC UPB should provide line items that can be combined into a construction cost estimate for a particular task required by an Owner.
The “detailed estimate of construction cost” for a JOC task , “JOC Proposal”, or JOC estimate associated with a JOC “task order” is a forecast of the predicted cost based upon prices derived from the JOC UPB with associated breakdowns/descriptions materials, labor, and equipment. A detailed line item estimate created with a UPB is should reflect costs better than a conceptual, or square-foot level estimate.
As noted, use of a JOC UPB is mandated by the Job Order Contract. Generally, pricing reflected in a JOC UPB represented “bare costs”, costs that do not include contractor overhead, profit, or other fees.
Use of the UPB should enable the majority of JOC estimates created to contain no more than 10% of the total estimate value derived from items not found within the UPB. Line items in a JOC estimate that are not derived from the UPB are referred to as non-prepriced (NPP) line items. The allowable percentage of NPP line items, in terms of estimate value, should be noted within the Job Order Contract.
The UPB should reflect reasonably current and “accurate” costs of materials, equipment, and labor are used to develop a unit price estimate. As noted, the sum of which created an estimate for a task order or project. (Note: In many cases multiple “estimates” can be total to create a sum for a task order or project, in order to better define work by type (i.e. electrical, mechanical, architectural, etc.).
The total value of the estimate(s) is then multiplied by the contractor’s approved co-efficient(s) to calculate the total cost of the project. Coefficients for Job Order Contracts typically range from 0.80 to 1.20, though can vary beyond this range due to extenuating secure, labor, and/or location issues.
While contractors may know what it costs and how long it takes for them or their subs to complete a given task, representing this information in a way for Owners, Subs, AE’s, and Oversight Groups to understand is equally important.