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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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8 essential steps for effective project cost estimation and budgeting

Fieldwire

Factoring material waste into the equation can reveal how many additional supplies you should procure to prevent delay. Determine indirect expenses You must estimate insurance, bonds, indirect field expenses and overhead costs. Integrating overhead expenses into estimates accurately is simple. On average, remodelers net 4.7%

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4BT OpenJOC Job Order Contract Unit Price Book

Job Order Contracting

The coefficient(s) is intended to account for the contractors overhead and profit, and any other items that are allowed per the Job Order Contract. An industry average JOC coefficient typically will range from 0.80 to 1.20. Awarded JOC contractor(s) use the coefficient(s) to determine lump sum costs for JOC task orders/projects.

Contract 100
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Job Order Contract Execution Guide – Sample Template

Job Order Contracting

Each project will encompass detailed line item construction task and reference specifications encompassing improvements, alterations, renovation, remodeling, major repairs, and minor new construction associated with ORGANIZATION NAME structures and properties. coefficient (reference table of allowable overhead).

Contract 100
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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. JOC must not be used as a method to approve construction project that otherwise would not pass conventional procurement standard. JOC also should not be used to simply speed procurement.

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JOC Coefficients Less than 1.0

Job Order Contracting

A Job Order Contract (JOC) coefficient refers to a multiplier that is used to adjust the prices in a JOC contract. It should be used to account for contractor overhead and profit. A unit price book should represent the costs for construction tasks (material, labor, and equipment) without contractor overhead and profit.

Overhead 187