INTRODUCTION – Procuring Construction Performance with Job Order Contracting yields significantly outcomes for owners, contractors, and facilities users.
Traditional construction delivery such as design-bid-build, and even efforts at improvement such as design-build, are lacking the respect to 1. basic contract focus and requirements, 2. relational aspects, and 3., integration of disparate processes and information.
A focus upon the procurement of AECOO (Architecture, Engineering, Construction, Operations, and Owner) OUTCOMES to the mutual benefit of all involved participants and stakeholders in not difficult, nor is it new. Furthermore, the benefits of this approach are well documented, and include a completion rate of approximately 90% or greater in terms of on-time, on-budget, and satisfactory renovation, repair, maintenance, or new construction project delivery.
That said, less than 5% of the AECOO sector engages in procuring construction performance and an even lower percentage does so efficiently.
FOCUS UPON OUTCOMES – An early and ongoing focus upon outcomes core aspect of Procuring Construction Performance with Job Order Contracting.
Every plan, activity, and expenditure of resource is done with the goal of increasing value for all participants and stakeholders. This can only be achieved if all participants and stakeholders are competent, engaged, understand and agree with all roles, responsibilities and planned outcomes, and share information in standardized, transparent manner.
With respect to the AECOO sector, the most important aspect is that the Owner provide leadership and have access to the required competencies for all aspects of the projects at hand. It is the Owner that must lead without excessive management and control, and provide an appropriate level of oversight.
Traditional construction delivery to reconcile the divergent values and strategies held by owners, contractors, building users, facilities managers, and others. In fact, it relies upon the false premise that lowest bidder and/or volume are the best ways to save money or improve efficiency.
LEAN construction, as embodied within OpenJOC Job Order Contracting, creates an environment that support specialized capabilities to create value beyond that achieved through artificial cost economies. For example, rewards are based upon performance, and processes are designed to mitigate opportunistic behavior and reduce both uncertainty and ambiguity. Roles and responsibilities are clearly specified and collaboration is a requirement of all participants.
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