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The Unique Challenges of Procurement Planning for Construction Companies

ProcurementExpress.com

Construction teams face unique procurement challenges due to the complex nature of the business. As technology changes the game, procurement is becoming a strategic juggling act. With that in mind, we’ll look at three of the biggest challenges that construction teams deal with and how they affect procurement planning.

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The Unique Challenges of Procurement Planning for Construction Companies

ProcurementExpress.com

Construction teams face unique procurement challenges due to the complex nature of the business. As technology changes the game, procurement is becoming a strategic juggling act. With that in mind, we’ll look at three of the biggest challenges that construction teams deal with and how they affect procurement planning.

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8 essential steps for effective project cost estimation and budgeting

Fieldwire

To say that winning bids is the key to success in construction is a half-truth. Subcontractors getting awarded a contract spells financial disaster if the bid is too high to be competitive or too low to be profitable. Bidding on projects you have yet to gain experience in can broaden your horizons.

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What is JOC

Job Order Contracting

Traditional design-bid-build (DBB) construction delivery was too inefficient for the large numbers of renovation, repair, and sustainment/maintenance projects. The new method was designed to shorten procurement and overall project delivery times while also maintaining quality. JOC also should not be used to simply speed procurement.

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Job Order Contracting – Lean Construction History

Job Order Contracting

Traditional design-bid-build (DBB) construction delivery was too inefficient for the large numbers of renovation, repair, and sustainment/maintenance projects. It was designed to shorten procurement and overall project delivery times while also maintaining quality. Associated delays were negatively impacting the Army’s mission.

Contract 100
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Job Order Contract Execution Guide – Sample Template

Job Order Contracting

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. coefficient (reference table of allowable overhead). JOB ORDER CONTRACT (JOC) EXECUTION GUIDE. UPB rate and the Contractor’s multiplier.

Contract 100
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JOC Coefficients Less than 1.0

Job Order Contracting

A Job Order Contract (JOC) coefficient refers to a multiplier that is used to adjust the prices in a JOC contract. It should be used to account for contractor overhead and profit. A unit price book should represent the costs for construction tasks (material, labor, and equipment) without contractor overhead and profit.

Overhead 187