A Job Order Contract Execution Guide is a required element for any successful, best management practice JOC Program. The following template is provide for sample purposes only and should not be used a legally bidding document without through review and modification by appropriate Owner legal counsel.
JOB ORDER CONTRACT (JOC) EXECUTION GUIDE
PURPOSE
The purpose of this guide is to describe the procedure to be utilized in the
administration of the Job Order Contract (JOC), a Contract designed to provide the ORGANIZATION NAME with a flexible and responsive contractual capability in support of their renovation, repair, and minor new construction services needs.
DEFINITIONS
Job Order Contract A Job Order Contract is a competitive sealed proposal firm fixed price, indefinite-delivery, indefinite quantity (IDIQ) contract to perform work for the ORGANIZATION NAME. The contract may consist of a collection of proposed institutional facilities type projects. Each project will encompass detailed line item construction task and reference specifications encompassing improvements, alterations, renovation, remodeling, major repairs, and minor new construction associated with ORGANIZATION NAME structures and properties. Much of the work may be performed during normal operating hours. However, as is typical with facilities work, other hours may be necessary. It is also expected that during certain time of the year project loads may be significantly higher and contractor staffing should reflect these needs. For each
project task/line item, a full description in plain English, a unit of measure and a corresponding unit price, including labor, material, and equipment details, and an associated approved contractor coefficient are to be the basis for Contractor compensation. The JOC Contract shall use the current calendar year issue of locally researched unit price cost data equivalent to the OpenJOC(TM) Unit Price Book – UPB (subsequently referred to as UPB) with updates as applicable, as a basis for unit cost. The 4BT-CE(TM) JOC cloud estimating and project management system, or equivalent, shall also be used.
Contractors submitting responses to an ORGANIZATION NAME JOC request for proposals (RFP) for a JOC Program are required to submit, and subsequently apply one coefficient or multiplier for normal or overtime hours. The unit price book should NOT included overhead and profit, but rather be “bare costs”. The contractors coefficient should include the contractors overhead and profits and other items as established by Contract requirements. The total of the line items for a specific project is then multiplied by the appropriate coefficient to determine the actual cost the project.
Costs derived from Division 1 of the UPB are generally not to be allowed without written
authorization. The Contractor must take these costs into account when proposing the
coefficient (reference table of allowable overhead). Each Job Order is broken down into individual tasks of work, and a total price is developed based upon the
UPB rate and the Contractor’s multiplier. ORGANIZATION NAME Technical Staff / Facilities Management Department Representative(s) and authorized ORGANIZATION NAME Procurement Authority review the Contractor’s Proposal. The ORGANIZATION NAME Procurement Authority will authorize a Job Order (JO) for performance of work, or request additional information/changes.
The JOC will remain in effect for one year from date of contract award. The ORGANIZATION NAME retains the right to renew any resulting contract(s) for up to four (4) additional contract periods. Contracts can be renewed, with no increase in the Contractor’s coefficient, only if both the Contractor(s) and the ORGANIZATION NAME mutually agree to do so. Justification for nonrenewal from either the Contractor or the ORGANIZATION NAME is not required.
A Performance and Payment Bond may be required, per state law, by the Contractor for any individual project associated with Job Order Contracting in which the Job Order may
exceed $XXXXXXX. Bonds, where required, are a reimbursable item with the JOC.
In the course of executing the Contract, the Contractor agrees to abide by the terms as stated in the General and Supplementary Conditions for the ORGANIZATION NAME
Architect/Engineer’s Guidelines, Quality Control, and other related documents in effect at
the time of award.
Job Order (JO) A Job Order (JO) is the contractual instrument issued by ORGANIZATION NAME designated Representative to the Contractor. The JO will be, in part, the
Contractor’s UPB estimate of tasks and quantities of labor, materials, and equipment to do the work, plans and specifications, and project timeline. The JO is issued and approved upon agreement between the ORGANIZATION NAME Representative and the Contractor on the scope of work, performance time, and the price for that work. The individual JO becomes in effect, a fixed price lump sum Contract when the Purchase Order for the JO is issued. The completed purchase order authorizes the Contractor to begin work.
Coefficient. The contractor’s coefficient is the price multiplier that the Contractor proposes. After award, the parties utilize this multiplier to determine the price of work. The total estimate for a JO is multiplied by by the contractor’s coefficient. For example, if the labor unit price for painting one hundred square feet of gypsum board is $15.00 and the coefficient is 1.01, the Contract price would be $15.15 ($15.00 x 1.01 = $15.15). The proposal coefficient shall be a net decrease from or increase to the line item total costs. The UPB costs should NOT include contractor overhead and profit.
PLEASE NOTE: In occasions where the contractor is asked to provide materials, equipment, and/or subcontract pricing for work by direct bidding that may, or
may not, be identified in the UPB. In these cases, the same “coefficient” will apply.
Overhead. The contractor typically bears overhead costs as part of the proposed coefficient of the JOC program. Allowable overhead items from the UPB, and/or allowed as directed by ORGANIZATION NAME Procurement Authority are detailed below.
The line item categories are:
Taxes
Field Office Expense
Field Office Personnel
Insurance
Job Conditions
Main Office Expense
Performance and Payment Bond
Permits
Small Tools
Scheduling
Surveying
Drawings
Temporary Utilities
Safety Nets
Personal Protective Equipment
Scaffold
Barricades
Fencing
Winter Protection
Security
Signs
Final Cleaning
Non-Prepriced Work. Non-prepriced work is categorized and addressed as follows:
Tasks that are not specifically included in the UPB but are within the basic intent and
general scope of the contract shall use the nearest UPB description and cost. Descriptions and detailed costs shall be modified and included as well as supporting notes and documentation.
Normal Working Hours 8 a.m. to 5 p.m.
Monday through Friday. Other days/hours may be arranged.
JOC TECHNICAL CONTRACT SPECIFICATIONS DEVELOPMENT
The Owner’s Representative will develop/provide specifications necessary for the procurement and implementation of the JOC. JOC Contractors will adhere to JOC Program Specifications, ORGANIZATION NAME General and Supplementary Conditions for the ORGANIZATION NAME Architects and Engineers’ Guide to Standard Technical Specifications, Quality Control, and similar documents/standards. If conflict exists in related contract documents then the following shall apply. All related contract documents may be superseded by individual Job Order project specifications (1st tier) and then these JOC Program Specifications (2nd tier). The intent of the specifications is to furnish concise institutional and/or industrial standards for maintenance, repair, and construction of ORGANIZATION NAME facilities. In the instance where the UPB offers, minimum/maximum costs associated with a particular task, or if the task is not listed in the UPB, the Owner’s Representative will cost out the materials based on local availability and use UPB labor rates most closely related to similar tasks, and apply them as directed in subparagraph A, below.
A. Materials:
(1) If materials specified by the JO for a specific task exceeds the unit material bare cost in the UPB, the Contractor may request adjustments of the bare cost. In these instances, copies of at least two competitive materials vendor quotations must be submitted to the ORGANIZATION NAME Representative to substantiate material costs in excess of the
UPB. The Contractor will be required to provide copies of invoices and proof of
payment when requested by the ORGANIZATION NAME. These negotiations must precede the JO award/approval and are not allowed on a Change Order basis. In these instances the contractor will be reimbursed at 10% above the invoice cost.
Contractor is responsible for receiving and storing their own materials, including
unloading of delivery trucks, checking deliveries and transportation to the work area.
ORGANIZATION NAME employees are not responsible for this.
If the JO and plans do not agree the JO prevails. If the plans and specifications do not
agree the specifications will prevail.
ORGANIZATION NAME reserves the right to purchase material or job required merchandise.
Materials not used on the job shall be returned to ORGANIZATION NAME stock for credit to job.
The ORGANIZATION NAME will be required to deliver such materials to the job site or compensate the Contractor for providing labor to relocate owner-furnished materials to the job site.
This action will require a modification to the JO to reflect a change order credit.
Equipment: Equipment costs can be included in the JO only if a unit cost for equipment is
listed for the specific task in the UPB, and actually used on the job. The Contractor shall
furnish as part of his overhead cost included in the coefficient, all necessary protective
equipment, concrete mixing boxes, water barrels, wheelbarrows, hoes, shovels, tools,
mortar boards, ladders, portable scaffolding, shop tools, drills, saws, hand tools, shop
equipment, and fabricating items customary to the trade, etc., and all other movable
equipment necessary to completing the work performed under this Contract. The furnishing of tools shall include all maintenance, loss and breakage. The ORGANIZATION NAME Representative prior to its use must approve any equipment reimbursements.
Labor: ORGANIZATION NAME will reimburse the Contractor for “labor costs” as follows:
(1) Labor costs will be reimbursed to the Contractor at the UPB rate x Contractor
coefficient. The University will not recognize any premium or incentives pay
reimbursement. Work performed on an overtime basis or shift shall not be included as
a “job cost”.
(2) If a task is not literally identified in the UPB the Contractor will be reimbursed in
accordance with non-prepriced protocol with trade and labor unit costs matched
as close as possible to UPB rates, multiplied by the coefficient. Insurance, fringe
benefits, travel time, employee’s residence to job site, or vacation allowances are to be
included in the Contractor’s coefficient.
(3) A worker with overall project supervisory authority is to be present on each job site at all times. Supervisory costs are to be part of the Contractor’s coefficient and will not be
reimbursed as a separate labor cost.
(4) Time and cost associated with an employee’s travel to and from job site are not
reimbursable.
(5) The Contractor may be required to perform the work under this Contract on the job site in the presence of ORGANIZATION NAME employees, other ORGANIZATION NAME Contractors, and/or Subcontractors, whether union or non-union, and shall complete the work assigned in the time required by the JO. In off-site work such as off-site fabrication, the ORGANIZATION NAME shall be so notified at the time of the issuance of the JO by the Contractor. The ORGANIZATION NAME reserves the right to inspect such off-site work at any time.
(6) The Contractor shall maintain a local office with telephone available for receiving and making calls throughout the working day and shall have available sufficient storage
space for materials and equipment if his office and principal place of business is not
located within 50 miles of the ORGANIZATION NAME. Other office equipment and personnel competencies required are fax machine and computer with an email account. The communications response time of the Contractor (or equal authority Contractor’s
representative) to the ORGANIZATION NAME , Monday through Friday, 8:00 A.M. to 5:00 P.M. shall not exceed 4 hours.
Subcontracts: Contractors may use the services of Subcontractors if noted in Contract. The Contractor shall be responsible for reimbursing Subcontractors. The ORGANIZATION NAME Representative may require the submittal of payment affidavits for Subcontracts prior to final payment. The use of Subcontractors does not alter UPB unit costs or Contractor coefficient.
(1) The Contractor shall, as soon as practicable and before the execution of each JO, notify the ORGANIZATION NAME Representative in writing of the names/phone numbers of Subcontractors proposed for the principal parts of the work and for such others as the ORGANIZATION NAME may direct. The Contractor shall not employ any Subcontractor that the ORGANIZATION NAME may for any reason object to as incompetent, unfit, irresponsible, or unsafe.
(2) The JOC Contractor agrees to be fully responsible to the ORGANIZATION NAME for the acts and omissions of the Subcontractor and of persons directly employed by the Subcontractor.
(3) Nothing contained in the JOC or Contract Documents shall create any contractual
relation between any Subcontractor and the ORGANIZATION NAME and nothing in the Contract documents is intended to make the Subcontractor a beneficiary of the Contract between the ORGANIZATION NAME and the Contractor. The Contractor agrees to bind every Subcontractor, and will see that every Subcontractor agrees to be bound, by the terms of the JOC and related Contract Documents inclusive of JOC Program Specifications, General and Supplementary Conditions, Architect’s & Engineer’s Guide to Standard Technical Specifications, Quality Control, and other similar documents/standards.
EXECUTION PROCEDURES
ORGANIZATION NAME /Contractor Coordination
(1) The ORGANIZATION NAME Procurement Authority contacts the Contractor(s) of
pending JO. The Contractor’s representative shall respond within XXXX (typically three)working days and scheduling a joint scope validation site visit and conference. During this meeting, the following are discussed and established:
a. Project number and title.
b. Site investigation.
c. Methods and alternatives for accomplishing work, plans, and specifications.
d. Scope of the work, definitions, tasks and quantities as required.
e. Time requirements for completion and site availability.
(2) Within XXX working days from the job walk (typically 5) the contractor shall review the project and submit a detailed line time price estimate.
3) The Contractor will be required to stand behind his negotiated price quotation for a minimum period of 30 calendar days from the date of its acceptance by the ORGANIZATION NAME. If a final negotiation and Notice To Proceed have not been executed by the ORGANIZATION NAME within that time period, then the Contractor shall have the right to review his price quotation and to modify it as justifiable.
ORGANIZATION NAME /Contractor JOC Activities
(1) Once Notification of a Pending Job Order Contract is acknowledged, the ORGANIZATION NAME formally request the Contractor to examine the JO, acknowledging the
scope of work, plans and specifications, and any special instructions or conditions that
may exist.
(2) The Contractor is responsible for verifying tasks, refining quantities. The Contractor
then formally responds to the JO within five working days from date of initial site visit.
(3) After review of the contractor’s JO revisions (if any), ORGANIZATION NAME will
approve or disapprove the JO, negotiate, or advance to another contractor.
(4) Upon acceptance of JO by both parties the ORGANIZATION NAME will initiate the
generation of the purchase order for each project.
(5) Once the purchase order is issued, the Contractor will begin work as per date ranges
specified in the JO. ORGANIZATION NAME will perform the Contract administration
associated with the JO until work completion, including final inspection and acceptance
within the time frame designated on the JO.
(6) ORGANIZATION NAME may hold retainage for completion of any punch list items in
an amount estimated to be 200% of the cost to complete the punch list.
(7) At time of project completion (inclusive of the completion of punch list items), the
Contractor will submit a request for Final Payment to be approved by ORGANIZATION NAME .
MODIFICATION TO JOB ORDERS
A. It is the sole responsibility of ORGANIZATION NAME to authorize a Change Order to a JO.
Change Orders shall be generated from UPB as the sole source for pricing. If differing site
conditions are encountered during execution of the Job Order, or if there is a desired change
to the quantity or quality of work by the owner, then a modified or supplemental JO by way
of Change Order is required. If a Change Order involves negotiation with the Contractor,
all negotiations must be completed within 3 working days.
B. For the purpose of issuing change orders to a Job Order, three typical circumstances are anticipated:
1. Differing Site Conditions.
2. Increased scope of work.
3. Decreased scope of work.
C. ORGANIZATION NAME will prepare a proposed Change Order to the JO addressing
differing site conditions or increased/decreased scope of work.
REPORTING REQUIREMENTS AND PAYMENTS
A. ORGANIZATION NAME will be responsible for administering all JO’s under the Contract.
B. Normally, the Contractor will only be paid for completed Job Orders. Application for final
payment shall be submitted once all work and the punch list (if applicable) are completed.
If the performance period of a Job Order exceeds 30 days, partial payment is authorized,
based on the percentage of completion minus a 10% retainage of total sum of JO.
Liquidated Damages may be assessed if project extends beyond JO agreed completion date.
This includes punch list items. Partial and final payments shall be submitted to ORGANIZATION NAME using the standard AIA “Application for Payment” form and/or other form as required. When the work is certified complete by the ORGANIZATION NAME and an invoice received, and will process the invoice for payment through established procedures for prompt payment.
C. ORGANIZATION NAME reserves the right to deduct from the contract an equitable amount for any damaged or uncorrected work until such time as the it deems the work satisfactory. If unfinished work or damaged or uncorrected work remains after the agreed upon JO completion date, ORGANIZATION NAME reserves the right to proceed in accordance with contract requirements.
D. ORGANIZATION NAME may withhold or, on account of subsequently discovered evidence, nullify the whole or part of any payment certificate to such extent as may be necessary to protect it from loss on account of:
(1) Defective work not remedied;
(2) Claims filed or reasonable evidence indicating probable filing of claims;
(3) Failure of the Contractor to make payments properly to Subcontractor for material or
labor;
(4) A reasonable doubt that the Contract can be completed for the unpaid JO balance;
(5) Damage to another Contractor;
(6) The expectation that Liquidated Damages will be charged;
(7) Deductions associated with loss of or damage to ORGANIZATION NAME property as a result of negligence or non-conformance to JOC contract documents.
When the above grounds are removed, payment shall be made for the amount withheld
because of them.
E. Liquidated Damages shall be a part of each JO and are set at the joint signing of the JO.
The basis for Liquidated Damages shall be as stipulated. Warning of intent to assess Liquidated Damages may be sent to the Contractor and Bonding Company for insufficient progress or chronic under-manning of a project to the extent that it is believed that the project cannot be completed within the agreed time frame. If the scope of the project includes outside work that is affected by inclement weather the Contractor must document these days by submitting copies of local weather reports that indicate precise conditions.
F. The Contractor shall submit a weekly report of activities. If a specific reporting format is required, the specific JO will so state.
G. The Contractor shall submit a copy of all required documents to ORGANIZATION NAME used in the project as part of project closeout.
H. Department of Labor Prevailing Wage Rate Documentation must be submitted at time of invoicing.
TERMINATION
If termination of a JOC contract is desirable for whatever reason, it shall be effected in
accordance with the General and Supplementary Conditions.