A JOC unit price book (UPB) is a required component of a Job Order Contract and provides a standardized method of organizing, describing, and costing numerous repair, renovation, and construction tasks. A UPB is also a core element of a common data environment (CDE), integral to LEAN Construction and BIM.
- Simple and clear, easy to understand by everyone.
- Complete detailed line item tasks required to complete the job/project and other key information.
- Verifiable, reflects local current costs for associated work elements.
- Concise and easy-to-use: Simple descriptions in plain English, organized using CSI Masterformat.
A JOC UPB enables greater collaboration and better communication among owners, contractors, and building users which in turn drives better decision making and significantly improved outcomes.
Job Order Contracting (JOC), a LEAN Integrated Project Delivery Method has required the use of unit price books (UPB) since its early beginning in the 1980’s. Leading JOC unit price books share the following features and capabilities.
- Clear descriptions of repair, renovation, and construction tasks using plain English and industry standard terms.
- Organization by CSI Masterformat
- Unit of Measure
- Total Cost (Total cost is general provided without contractor overhead and profit)
- Breakdown for Labor, Material, and Equipment costs that are used to calculate the line time total cost.
- Demolition line items.
- Line item modifiers. A line item modifier is and add or deduct from a parent line item to account for applicable variables (i.e. quantities, work environment/location, material based work methods, etc.)
- Crew designation and crew description/makeup.
Benefits of Unit Cost Line Item Estimating
- Scope of Work Enhancement
- Improved Cost Visibility/Awareness
- Cost Validation
- Reduced Risk
- Improved Decision-making
What is Cost Data is best for JOC
1. Commercially Available Construction Cost Books Based Upon National Averages?
2. Subcontractor Quotes?
3. Locally Researched Job Order Contract Unit Price Books (JOC UPB)
Commercially Available Construction Cost Books – These reference cost books generally provide costs based upon a national average. The are a great for getting ballpark costs quickly. Some suppliers also provide area cost factors than can be used to roughly estimate costs for your local area. This approach is fine for high level estimates, however, researching labor, material, and equipment for a specific city, county, or region delivers far more accurate information.
Subcontractor quotes – Prime contractors traditionally have used internally developed cost books based upon local knowledge and also have relied upon subcontractors for cost information. This approach has several issues. First, it typically doesn’t provide a transparent and common “language” to communicate a detailed job scope to Owners or other team members. Organization may, or may not be by CSI Masterformat. Furthermore, there is no objective methods to assess the accuracy of subcontractor quotes. Cost data obtained in this manner therefore is difficult to defend, communicate, verify, and reuse.
Locally Researched JOC UPB – Line item construction cost estimates provide the greatest detail, however, also require the greatest skill. Broad construction field experience as well as decades of estimating experience on the part of the estimator are required. LOCALLY RESEARCHED detailed line item pricing, inclusive of line item modifiers and demolition line times, organized by CSI Masterformat Unit price estimating, and when sourced from a capable, independent, objective supplier provided the most robust and defensible cost information.
A line item JOC Unit Price Book delivers optimal results.