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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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Job Order Contracting by the Numbers

Job Order Contracting

Best Value procurement process. Contractor applies a coefficient to project / task order costs calculated using the UPB – Coefficient incorporates overhead, profit, and other potential variables. JOC consultants can facilitate the process. Minimum and maximum contact value per year and per project / task order.

Contract 100
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What Your Clients Think Of You, The Consultant

PSMJ Resources

by: PSMJ''s Public Works Project Management Consultant, Michael Ellegood, P.E. Whenever I work with consultants, I am often asked how do our clients, particularly public agency clients, think of us in the private sector consultant world. Skeptic: “Consultants are merely vendors.

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LEAN Construction for Facilities Renovation, Repair, Minor New Construction

Job Order Contracting

Benefits of JOC: Reduced procurement costs and time. Value-based procurement. Reduced overhead for both owner and contractor. Using JOC as a method to bypass traditional procurement versus a best value delivery system. Shorter overall project delivery times. Faster response times. Improve participant satisfaction.

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JOB ORDER CONTRACTING BASICS

Job Order Contracting

that reflects contractor overhead and profit, and other items as allowed via the contract. Purchase of these tools and services however should be done on a specific dollar fee/price basis, and not procured as a percentage of total JOC construction volume. The latter is a factor, generally around 1.2 Job Order Contracting Basics.

Contract 116
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What is JOC

Job Order Contracting

The new method was designed to shorten procurement and overall project delivery times while also maintaining quality. That said, Owners must provide leadership and be competent in supporting JOC without the excessive reliance upon JOC consultants. JOC also should not be used to simply speed procurement.