Learnings from JOC Program Audits and AEC Industry Research

There are multiple learnings from JOC Program Audits (see audit results)

1. Lack of direct Owner participation and leadership (versus using a third-party intermediary/consultants) can result in higher overall costs, higher JOC Program administrative costs, lack of cost visibility and controls, and a potential for misuse/fraud.
2. The use of localization factors (city cost indices, area cost factors) or economic factors (ENR, CPI…) does not provide adequate cost control or cost visibility.
3. JOC contractor coefficients/adjustment factors should always exceed 1.0 if the unit price book is prepared correctly.
4. Initial and ongoing training for ALL participants and stakeholders is critical to JOC Program success.
5. JOC Planning, Procurement, and Project Delivery Teams must be integrated and observe robust LEAN philosophies and practices.  
6. Using JOC to simply speed procurement can lead to key issues with both compliance and project delivery cost/efficiency.
7. Paying for JOC Program tools and service via a percentage fee based upon construction volume can result in excessive costs to all participants and stakeholders.  This approach can exceed ten times (10x) that of procuring tools and services via a SaaS model with easily defined annual and/or per unit costs.
8. Lack of understanding, collaboration, commitment, and accountability among Owner planning, procurement, and project delivery teams is the number one cause of JOC Program failure.
9. Intelligently designed and implemented JOC Programs can improve productivity 3x, reduce administrative costs by 75%, and lower overall project delivery costs by 30%-40%. 
10. Quantitative metrics are critical to JOC Program success as are regular independent third-party audits.

Common goals, metrics, and the adoption of a programmatic versus project centric approach can drive significant improvements in efficiency and compliance.  A common set of terms and definitions is also extremely important to collaborative information sharing, without this, inclusive of a locally researched granular unit price book, “apples to apples” comparisons and mutual understanding on an early and ongoing basis are virtually impossible.

Owner leadership and commitment to an open JOC Program based upon robust principles is the ONLY path to measurable gains in efficiency and quality.  There is no “secret sauce” and everyone must use the same (or similar) tools and techniques and deliver the same (or similar) results.  Owners must strive to assure everyone acknowledges this reality, and mandate that all participants openly share data and lessons learned.

The current levels of lack of trust pervasive among project teams, poorly defined conditions of satisfaction or goals from owners can easily be changed.

Open JOC Programs and associated tools and services can…

1. Establish common metrics.
2. Create trust and enable early and ongoing information sharing.
3. Establish and maintain long-term internal and external team relationships.
4. Measurably reduce economic and environmental waste.

Learn more…

LEAN Job Order Contracting is an indefinite-delivery, indefinite-quantity (IDIQ) project delivery method that integrates internal and external planning, procurement, and project delivery teams. Via the LEAN 4BT OpenJOC(TM) Framework multiple projects can be completed over the life of one long-term contract on-time, on-budget and in a fully compliant manner with full cost visibility and cost control.  The 4BT OpenJOC Solution is the best value choice for public sector owners who complete a high volume of routine repair, renovation, maintenance, and new build construction projects each year.

www.4bt.us