Even a JOC Plan Can Go Wrong
Facility managers and real property owners struggle with their numerous and ongoing renovation, repair, sustainability maintenance, and minor new construction projects. As a result backlogs seem to always grow and resources always inadequate to satisfy facility user needs.
Job Order Contracting, JOC, is a proven solution to providing quality on-demand construction services on-time and on budget, and to reduce repair, renovation, and capital renewal backlogs.
When implemented and deployed improperly, however, even JOC programs can take longer than planned, cost more than budgeted, and be subject to scrutiny.
Common errors made in implementing a Job Order Contract can lead to major problems.
#1. Project Management Failure
JOC is a LEAN construction delivery methods and involves both change management and competent owners to lead the implementation and continuous improvement. Upper management must be fully committed to communicating and supporting new collaborative management practices internal and external to the organization.
Failing to communicate the value of JOC to every stake holder and participant is the most common problem found in JOC failures. All participants must want the benefits that JOC can provide.
JOC project managers also must make certain that all participants are clear on what roles each person has to play, and how each person’s contributions to the project will evaluated and/or compensated.
Failure is assured from the beginning if collaboration support is being shown by all participants. Also, proper procedures must be in place to address issues, problems, and concerns. Focus must be upon negotiation and mutually satisfactory resolutions.
Over, communication and collaboration are is central to success. All communications must be consistent, regular, and reinforcing.
#2. Cutting Corners on Initial and Ongoing Training
A common mistake is assigning design, implementation, and/or management of the JOC program to someone who is not sufficiently skilled, trained, and experienced. For example it requires specialized skills to collaboratively provide leaderships from an owner perspective. Consultants can assist in this progress, however, consultants should not be solely responsible for a JOC program. (Note: Under no circumstances should a consultant be responsible for approving JOC projects and be paid a fee based upon construction volume.)
Training should include multiple levels and occur on an annual basis at a minimum. Examples include, Introduction to JOC, Introductory Line Item Estimating, Advanced Line Item Estimating, and Negotiating Task Orders. Training should also be available in multiple format to assure participation, including Regional, On-site, and Virtual.
Specific hands-on training should be provided for any JOC software, reporting, and/or documentation.
Proof of training in the form of a certificate, should be required.
#3 JOC Misused as a Way to Bypass Procurement
Unfortunately some owners employ JOC simply as a way to bypass controls and delays imposed by traditional procurement procedures. In this instance, projects get approved that others would not withstand the rigor of traditional improvement, and the benefits of JOC are not recognized. This is common in case were owners are not experience with JOC and/or there is little project oversight. JOC misuse is generally more common when an owner is not directly involved in the day-to-day administration of a JOC, for example JOC management is outsourced to a third party.
#4 Improper JOC Technology, or Technology Misuse
JOC programs should not, in general, be managed in spreadsheets, or within systems that do not provide full transparency. JOC programs should provide easy seaching and use of the JOC Unit Price Book and at a minimum provide Contract, Project, Estimate, Contractor, Coefficient, and Document Management. JOC unit price books should be locally researched and updated annually. Localization factors should not be used as do not provide sufficient cost granularity are a subject to wide cost variations. Annual economic updates should also not be used due to errors induced by such a global approach.
#5. Inadequate Implementation Time & Resources
While a JOC program can be be up and running “from scratch” within a six month time frame, it generally takes a year to eighteen months for the program for participants to gain significant benefit. Further more improvement will be continuous as participants discover new ways to address work. Furthermore, the change from reactive, traditional work relationships to proactive, collaborative teaming takes time. Internal and external participants will need to dedicate long time to changing day to day work habits.
Outside consultants can help to setup the JOC program, provide certain support, training, audit services, and to accelerate progress. Again, however, Owners must demonstrate leadership and actively manage the JOC program in order to obtain the major benefits associated with JOC.
www.4BT.US