A critical role of a Owner JOC Program Manager is the ability to review and negotiate JOC Contractor Estimates. This is true for all Public Sector Owners, Federal/State/County/Municipal, Transportation Agencies, Healthcare, Education… as it is their fiduciary responsibility to assure that funds are being allocated as efficiently as possible with respect to associated repair, renovation, or minor new construction projects.
Cost estimating and budgeting recommend practice – ‘A structured, if not formal, review process is a best practice’ – Association for Advancement of Cost Engineering International, AACEI – Recommended Practice No. 31R-03, May 12, 2009
Here are just a few of the tasks that an owner JOC program manager must perform to assure a fair and reasonable price is being charged by the JOC contractor, scope of work is correct, and that adequate funds are available.
The actual technical review of a cost estimate submitted by a JOC Contractor may be done by in-house estimators or owner’s representatives/consultants with appropriate capabilities and business relationships.
Note: It’s also a best practice for any Owner to require an internal estimate for projects above a specified dollar threshold. This is mandatory in the case of Federal Owners.
The JOC Program manager, in-house estimator, or owner’s representative estimator, should, at a minimum, do the following tasks,
- Assure estimate is in concert with the project scope of work established by the owner in terms of intent and completeness.
- Verify use of appropriate UPB and appropriate UPB line items and note, as well as calculate total of any non-UPB line items. Approve or disallow are appropriate.
- Verify quantities.
- Verify appropriate line item modifiers are being used.
- Verify appropriate documentation and mark-ups for any non-UPB line items.
- Verify the appropriate JOC contractor’s co-efficient is being used.
- Negotiate line items with the JOC contractor as needed.
Learn more about JOC Program, Project, Estimate, and Document Management…
