Happy New Year! Many people have heard of Job Order Contracting (JOC) but have no idea what it means or does not know how to use it. JOC is an alternative project delivery method commonly used by public entities such as school districts, municipalities, housing authorities, and other government organizations. It is designed to streamline the procurement of construction, repair, renovation, and maintenance services while maintaining transparency, competitive pricing, and compliance with public procurement requirements. Furthermore, Job Order Contracting is an indefinite delivery, indefinite quantity (IDIQ) contracting method. Instead of bidding each project separately, an owner competitively selects a contractor upfront based on qualifications, pricing structure, and experience. Once awarded, the contractor performs multiple projects over a defined period using pre-established unit prices. Rather than rebidding each repair or renovation, the owner issues individual Job Orders under the master contract, allowing work to begin quickly and efficiently.
The Job Order Contracting process is relatively simple and below is step by step guide:
- Competitive Selection
The public entity competitively procures a JOC contractor through an RFQ or RFP process. Contractors are evaluated on experience, technical qualifications, past performance, and a pricing coefficient tied to a standardized Unit Price Book. This is typically accomplished through purchasing cooperatives, which competitively procure and award Job Order Contracts to qualified contractors on behalf of their member agencies. - Unit Price Book (UPB)
The UPB contains thousands of pre-priced construction tasks covering a wide range of trades. These prices establish the basis for fair, transparent, and auditable costs. - Coefficient Proposal
Contractors submit a coefficient (or multiple coefficients) that is applied to the UPB prices. This coefficient accounts for overhead, profit, and other factors and becomes the foundation for pricing all future Job Orders. - Project Identification & Scope Development
When a project is needed, the owner works with the JOC contractor to develop a clear scope of work. This may include site walks, shop drawings, and discussions to define expectations. - Job Order Proposal
Work is performed under the same quality, safety, and compliance standards as traditional construction, followed by closeout documentation. - Review & Approval
The owner reviews the proposal for accuracy and scope alignment. Once approved, a Job Order is issued and construction can begin. - Construction & Closeout
The owner reviews the proposal for accuracy and scope alignment. Once approved, a Job Order is issued and construction can begin.
Job Order Contracting is a proven, efficient solution for public entities seeking faster project delivery, predictable costs, and high-quality construction services. By eliminating repetitive bidding and leveraging pre-established pricing, JOC allows organizations to focus on maintaining and improving their facilities, while saving time and resources. If you would like to learn more about Job Order Contracting or have a construction project in mind, please contact Derek Gerloff at derekgerloff@gerloffinc.com. Until next time my friends, be prepared and stay safe!
Reference: Gordian – “What is Job Order Contracting”, Texas Cooperative Purchasing Programs (TIPS, BuyBoard, Sourcewell) and US Army Corps of Engineers – “Job Order Contracting Overview”
