Relationship-based Job Order Contracting – Enabling commitment based upon a mutual set of expectations and an understanding of acceptable behaviors of each partner and shared, objective, and actionable information.
Move from a single transaction/project mentality where both sides attempt to gain maximum financial advantage to a program mentality, where teams work towards mutually beneficial long-term outcomes.
-
- Innovative, market tested solution
- Cost effective
- Leverages experience of design-builders
- Empowerment and collaborative individualism
- Direct Owner/Design-Builder communication and collaboration – Owner PM & Design/Builder PM
- Comprehensive detailed scope of work
- construction proceeding prior to completion of the design documentation;
- Reduced confrontation between owners and design/builders
- Early and ongoing involvement of all stakehholders
- Performance-based reward systems
- Fewer change orders
- Full accountability
- Defined roles, responsibilities, workflow, and documentation.
- Mechanism for sharing risks and benefits
- Higher levels of service
- Focus upon training and development
- Lowest JOC Program adminstration cost
Benefits
- Fewer contract variations
- Organisational learning and team learning via sharing the diversity of independent collaborative individuals with unique skills
- Reduced exposure to litigation due to enhanced communications, workflows, and defined issue resolution strategies
- Lower risk of cost overruns because of siginficantly enhanced cost visibility
- Lower risk of time delays due to improve Scope of Work granularity
- Higher quality
- Lower administration costs
- Compliant
- Non- adversarial attitudes
Partnership is the benchmark for other Owner-Design/Builder relationships
Cooperation + commitment to achieve shared goals
Trust, cooperation, commitment, and accountability
Written roles and responsibilities for the paticipant across all organisation
Measurable quantitiative objectives relating to each requirements
Mutually beneficial outcomes
Defined process to orient new team members and enable continuous improvement
Focus upon commitment and trust
Regular formal partnering meetings and subcontractor meetings
Daily information meetings
Monitoring against mutually agreed goals
Periodic workshops focused on unresolved issues and problems
Design/Builder Requirements
(1) Demonstrated ability to help define and complete the full detailed scope of works
(2) Demonstrated ability to minimize project capital and operating costs without sacrificing quality.
(3) Demonstrated ability to achieve outstanding quality results.
(4) Demonstrated ability to provide the necessary resources for the project and meet the project program requirements.
(5) Demonstrated ability to add value and bring innovation to the project.
(6) Demonstrated ability to achieve outstanding safety performance.
(7) Demonstrated ability to achieve outstanding workplace relations.
Learn more about…
- Defining project goals;
- Identifying resources required to provide the partnering infrastructure;
- Knowing how to evaluate potential project partners; and
- Understanding relative benefits of different types of relationship arrangements.
via Four BT, LLC – Proven construction management solutions that drive continuous improvement based on trust, cooperation, commitment, actionable information, and robust processes. www.4bt.us
- Long-term focus on accomplishing the strategic goals of involved parties
- Multi-project agreement: long-term relationships without guaranteed workload
- Common measurement system for the projects and the relationship
- Improved processes and reduced duplication
- Relationship-specific measures tied to team incentives
- Shared authority
- Openness, honesty, and increased risk sharing