article thumbnail

How Much Does Rework Really Cost Your Job and What Can You Do to Stop It?

Construction Junkie

Unsatisfied with stopping at direct cost, the researches at Navigant then turned their attention to overhead costs, which include managerial, supervisor, and site safety costs. Stakeholder Participation Early and Often Up front communication between all interested parties avoids confusion and possible changes.

article thumbnail

Job Order Contract Execution Guide – Sample Template

Job Order Contracting

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. The individual JO becomes in effect, a fixed price lump sum Contract when the Purchase Order for the JO is issued. authorization. may not, be identified in the UPB.

Contract 100
professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

#66:  Labor Inefficiency Costs: Who Pays? How Much?

NH Construction Law

Sometimes this unanticipated time/space compression is the owner’s fault, in which case the general contractor/construction manager and its subcontractors will likely be entitled to increased compensation by change order or otherwise -- and to a mechanic’s lien if that increase is not paid. See Town of Bedford v.

Lien 40
article thumbnail

Lean Construction – Overcoming decades of mistrust, lack of communication, and opposition between facilities owners, designers, engineers, and builders.

Job Order Contracting

Adversarial, change-order-oriented environment is common between owner, A/E, and contractor. Bid shopping can occur and actual overhead and profit amounts are unknown. Change orders may be reduced versus DBB due to A/E-contractor collaboration and contractual relationship. Disadvantages. Disadvantages.

Design 130
article thumbnail

Job Order Contracting Review Best Management Practices 2019

Job Order Contracting

Typically JOC Programs are single year IDIQ ( indefinite delivery/indefinite quantity) agreements with up to four (4) additional option years. Procurement costs, project delivery times, overall construction costs, changes orders, and legal disputes can all be mitigated via properly established and managed JOC Programs.

Contract 130
article thumbnail

Lump Sum or Cost-Plus Contract: You Can’t Have It Both Ways

Best Practices Construction Law

Paragraph 47 of the contract stated that it was a “cost plus contract” with specific fees for overhead, warranty and profit to the contractor, while another part of the contract included language that the “agreed upon price is $282,000.00.”

article thumbnail

Job Order Contracting – Review of Best Management Practices 2019

Job Order Contracting

Typically JOC Programs are single year IDIQ ( indefinite delivery/indefinite quantity) agreements with up to four (4) additional option years. Procurement costs, project delivery times, overall construction costs, changes orders, and legal disputes can all be mitigated via properly established and managed JOC Programs.

Contract 115