The first step in learning how to benefit from Job Order Contracting (JOC) is to understand the following facts:
#1 Not all JOC Programs, “JOC Consultants”, JOC vendors are the same.
#2 Paying a Percentage of JOC construction volume will always cost your organization more.
#3 A full time “JOC consultant” should never be used as there is no need for the cost, and the practice distances the owner from the design-builder. and does little to build internal knowledge and capabilities. Third parties should only be used to provide software, unit price cost data, and appropriate services such as training and auditing.
#4 JOC should NEVER be used to simply speed the procurement of repair, renovation, maintenance, and new construction project. Used to its full benefit, JOC is a LEAN integrate project delivery method. JOC can integrate siloed planning, procurement, and project delivery teams and processes to maximize productivity and drive down total costs %20-30%.
#5 Always use locally researched detailed line-item construction cost data to support your JOC Program. DO NOT use location factors or economic factors for developing or updating the unit price book (UPB).
A high performing, best value JOC Program should….
• Reduce or eliminate traditional procurement inefficiencies including administrative burden, project delivery times, and total costs.
• Integrate planning, procurement, and project delivery for all internal and external participants in a collaborative, consistent manner.
• Create a fully transparent (full cost and technical visibility) and competitive environment throughout the planning through execution lifecycle