Sourcing the ideal contractor for a public project is tricky. Managing the procurement journey from project start-up to issuing the Notice to Proceed (NTP) can be downright taxing. Here’s where taking advantage of Job Order Contracting (JOC) can streamline the process and ensure an organization’s contracts are in good hands.
Undoubtedly, the path from project approval to contract award can be complex and time-consuming for any public organization. This is true when finding a partner for routine maintenance, repair or renovation, or a small construction project. Moreover, public organizations are entrusted with keeping a close eye on finances at every step, which can be onerous as the procurement process stretches on.
“Contractor procurement can be challenging, even for the smallest construction jobs,” says Jonathan Burbee, Director Business Development with Gordian. “That’s why, through Job Order Contractor – or JOC – we aim to help project owners purchase construction services more effectively and optimize their budget at every step.”
JOC is a proven construction project delivery method that has been around for over 30 years. Through it, organizations go to market for any number of projects through one competitively awarded contract.
The process is simple, says Burbee. At Gordian, it begins with having cost engineers put together a unit price book – aka Construction Task Catalog® (CTC) – tailored to their client’s specific needs and location in order to capture the most accurate prices. Next, Gordian connects the client with local contractors and gives them everything they need to know about bidding for the projects on offer, including how to bid through the JOC project.
“Contractors only have to bid on that CTC one time instead of separate times for all the individual jobs,” Burbee explains. “And once they’re awarded the contract, they know everything they need to hit the ground running.”
Gordian’s JOC process goes beyond the project awarding stage. Once the partnership is struck, a five-step process ensures the contractor is aligned with the project owner’s goals and budget before shovels hit the ground. This five-step process includes an initial joint scope meeting to confirm the scope of work is clearly defined and agreed upon by all stakeholders, after which the awarded contractor is tasked with creating a price proposal based on the project owner’s CTC and contractor’s Adjustment Factor, thereby eliminating price negotiations. An Adjustment Factor (also called a coefficient) is a multiplier on the cost of construction tasks listed in the CTC, and is the mechanism that enables contractors to profit from participating in a JOC program.
“After that Price Proposal comes in, a Gordian rep steps in to review it and make sure it covers every task needed to complete the project. The process eliminates inefficiencies and saves owners an average of 6% in hard construction costs.” says Burbee.
With the Price Proposal approved, the next step is to ensure the project is on track. For Gordian, that means using its collaborative, purpose-built software to set and track key milestones (e.g., Project Startup, Scope Development, Request for Proposal, Purchase Order Issuing, NTP issuing, etc.) and create auditable records detailing how every dollar is being spent.
What existing users say about JOC:
Raj Sheth is the Commissioner of Corporate Services at the City of Mississauga where JOC has been in practice for more than five years. He narrates his experience with JOC as, “Managing smaller projects like roofing, office renovations, and mechanical/electrical work presents formidable management challenges for us. The additional complexities of inflation and staffing compound the situation. However, amidst these obstacles, the JOC program offered valuable support, enabling us to navigate these challenges and fulfill our mandate with enhanced speed and efficiency.”
JOC on the rise
JOC is catching on among project owners. At last count, organizations have entrusted Gordian’s JOC Program with more than $3.2B in construction volume annually. It helps that the program has been proven to unlock stronger project outcomes, as outlined in the research conducted by the Arizona State University’s Del Weeb School of Construction below:
“The JOC Program is about helping organizations get the most value for their dollar and go into projects with partners they can trust,” says Burbee.
Since 1982, Gordian has provided Building Intelligence™ Solutions to more than 16,000 organizations worldwide to successfully budget, build and maintain the capital-intensive assets their communities rely on. Learn more about Job Order Contracting.
