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Why Public Sector Building Owners Should NOT Pay Percentage-based Compensation to JOC Consultants

Job Order Contracting

A key benefit of JOC is early and ongoing collaboration and transparency information sharing between the real property owner technical and procurement teams and the awarded JOC construction contractor. The post Why Public Sector Building Owners Should NOT Pay Percentage-based Compensation to JOC Consultants appeared first on 4BT.

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Objective, reliable, and veriable Construction Cost Estimates

Job Order Contracting

2 Joint Job Site Visit: Owners and design-builders should always conduct a joint visit to the site to review existing/verify conditions. #3 A knowledgeable and well-trained estimating team is a key component along with a robust processes, procedures, a objective and granular local market construction task data. #1

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Collaborative Construction Solution – Public Sector

Job Order Contracting

If the owner wants a participant to do more than the bare minimum required, to overcome a problem or achieve a better outcome, or to coordinate and integrate its work with those being delivered by other non-owner participants, the owner will typically have to compensate that participant for its additional costs, to restore its profit margin.

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LEAN Construction Framework – A Robust Solution fully supported by tools and services

Job Order Contracting

Integrated internal and external planning, procurement, and project delivery teams. designing to target cost”. Compensation”. An introduction to a LEAN Construction Framework – A Robust Solution fully supported by tools and services. Efficient, balanced, and collaborative. A template for implementing target costing”.

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Collaborative Construction Solution

Job Order Contracting

Traditional contracting methods such as design-bid-build, and even somewhat newer developments such as design-build typically involve the non-owner participants providing lump-sum price based an owner’s proposed requirements. Furthermore, compensation is performance-based and depended upon the final outcome.

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Efficient LEAN Construction Delivery

Job Order Contracting

Integrated team of owner and contractor technical and procurement teams and building users. Compensation. Individually pursued, first-cost focus (lowest price of design and construction of the building alone, without maintenance and other costs). Linear, segregated, siloed. Managed individually, transferred to greatest extent.

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Common Myths Associated with LEAN Construction & LEAN Facilities Management

Job Order Contracting

FALSE: Traditional methods such as design-bid-build and even design-build, are wasteful and cost more in the long run than Integrated Project Delivery (for new construction) and Job Order Contracting (JOC) for renovation, repair, and minor new construction. Life-cycle costs are reduced by LEAN methods, as are procurement costs.