Happy New Year! Let us talk construction to start the 2025 year. There is a construction procurement method called Job Order Contracting, or JOC for short, that has been around since the early 1980’s. Its origins are credit to the U.S. Army, who developed the process to address construction needs in Europe during that time. Specifically, the concept is attributed to a man named Harry H. Mellon, who is credited with creating the modern form of Job Order Contracting and who brought it to a wider market.
JOC was designed to handle the numerous small to medium sized construction projects efficiently, particularly for maintenance and repair work, by streamlining the bidding process. Today JOC is used a project delivery method utilized by organizations to get numerous, commonly encountered construction projects done quickly and easily. A Job Order Contract is a competitively bid, fixed price, construction contract based on established or published unit prices via a unit price book (UPB), or a price list, with a multiplier (termed coefficient) applied to the unit prices. The unit prices are used to price construction tasks associated with the scope of work. The contract is also known as an indefinite delivery, indefinite quantity (IDIQ). More simply stated, this means that on construction contract can be used at various times to complete on or multiple projects.
Below are some examples of construction projects that are perfect for the JOC program:
- Accessibility, safety, and code upgrades
- Plumbing and piping
- Interior and exterior renovations
- HVAC improvements
- Security upgrades
- Flooring and ceiling projects
- Roofing
- Window and door upgrades
- Demolition and remediation
- Electrical and lighting upgrades
Furthermore, the Job Order Contracting program has several benefits to the purchasing entity:
- More Projects Completed On-Time and On-Budget – Collaborative information sharing, detailed project scopes, and proven processes speed project delivery
- Cost Savings & Enhanced Cost Visibility – More dollars spent on actual construction combined with standardized cost information
- Long-Term Relationships – Development of a partnership relationship based on performance with JOC contracts averaging 3-5 years
- Reduced Deferred Maintenance Backlog – More projects are completed simultaneously per year at predetermined prices
- Fewer Change Orders – Better communication improves project scope development and yields elimination of contractor-driven change orders
- Transparency – Each project cost is developed via a line-item estimate/costs from the unit prices yielding full transparency
Job Order Contracting is a great construction method for entities to utilize to get construction projects done quickly and within budget. If you have any questions on the Job Order Contracting process or have a project in mind, please contact Derek Gerloff at derekgerloff@gerloffinc.com. Until next time my friends, be prepared and stay safe.
Reference: “JOC: The Most Collaborative Project Delivery Method” by The Center of JOC Excellence