The role of procurement in measurably improving construction productivity is clear. Procurement must be part of a collaborative and integrated team that involves owner planning and project delivery staff members.
Tools are services are readily available that can reduce overall costs by 30%+ while also improving quality and shortening project delivery times, IF implemented, and managed properly. A robust tool is Job Order Contracting (JOC).
The role of procurement in measurably improving construction productivity is critical to achieving best value outcomes.
However, most procurement teams view JOC simply as a way to speed projects through the planning, procurement, and project delivery cycle. There is little thought given to the cost of the program, collaboration, or best value.
Cost visibility, transparency, and accountability are virtually nonexistent. Also, trust and true collaboration with design-builders is rare. Most traditional JOC Programs lack ✅ Urgency ✅ Accountability ✅ Communication and ✅ Empathy.
Implementing a best value JOC Program is a skill that requires owner leadership, commitment, and accountability.
A few comments to consider…
#1. If you are paying a percentage of total JOC construction value for JOC tools and services, you are more than likely wasting significant taxpayer funds.
#2 Best value JOC Programs require strong teams with independent thinkers. “Command and control” techniques simply won’t work and simply result in push back from participants and poor performance. You JOC Program must encourage buy-in to a mutually beneficial long term way of working. The team must win, not just the owner. While the owner provides leadership, each team member must have the ability to shape the course of action without micromanagement in order to yield more robust outcomes.
#3 A collaborative best value JOC Program takes time and progresses through incremental stages. Unfortunately, many existing programs have never been set up properly from day one.
Procurement professionals need to be able to pivot to taking a more collaborative approach to getting things done.
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