When it’s an “Open JOC”!

 

The term “Open JOC” refers to a “so called” Job Order Contacting program that lacks a standardized unit price book (UPB).  It is a misnomer as “Open JOC” has little in common with its namesake.  For example, using “Open JOC” Owners typically don’t do independent internal estimates. Contractors simply submit estimates for various projects, not unlike traditional design-bid-build.

A true Job Order Contracting program requires the use of a standardized unit price book (UPB).  JOC relies on the UPB not only for procurement requirements but because the unit price proposal preparation process adds value to the project by requiring a clear understanding of the component parts by all parties involved.

While there may be a need to acknowledge the need for other small project delivery methods such as “Open JOC”,   we need to distinguish them from Job Order Contracting.  Failure to do so promotes misunderstanding and improper implementation of true Job Order Contracting.

JOC / Job Order Contracting is proven to be a highly efficient and effective construction project delivery method, however, implementation REQUIRES the following:

1. Transparency – A standardized, well researched, and current unit price book (UPB).
2. A collaborative, partnering relationship among Owners and Contractors/AEs.
3. A proactive vs. reactive mindset
4. A robust business process embedded within supporting technology to assure consistent deployment and monitoring.
5. A long-term (3-5 years) umbrella contract
6. Competitive pricing through the use of a  coefficient applied to a unit price book (UPB)
7. Best Value selection to ensure contractor performance
8. Individually-priced delivery orders
9. Ability to perform unit line item cost estimating – Owners, Contractors/AEs
10. Owner internal maintenance capability