Over the past four decades, Job Order Contracting (JOC) has vastly improved the way construction procurement is done, enabling teams to complete projects more efficiently and cost-effectively. Advantages unique to this procurement solution — such as up front, competitively-bid pricing — have helped organizations across North America complete more than $3.8 billion in construction volume annually.
Are you a facility or procurement team leader looking to access the benefits of a Gordian Job Order Contract? In this comprehensive guide, we will explore the options, whether by developing a customized program tailored to your specific needs or utilizing a shared agreement.
Customized JOC Program
One way to access a Gordian Job Order Contract is through a customized JOC program. This tailored approach ensures that every aspect — from the selection of tasks to the pricing structure — is specifically designed to meet the unique needs of the organization. Once the details are finalized, projects can begin promptly after contracts are awarded. The JOC program is ideal for organizations handling millions of dollars in recurring maintenance and alteration (RMA) work each year by providing a contract specifically designed for them.
With a customized JOC program, organizations receive a tailored Construction Task Catalog® (CTC) with verified local costs, including labor, materials and equipment. Gordian’s data scientists and cost engineers research these costs to help price out every project.
“We worked very closely with the folks at Gordian — our legal team and their legal team to go through everything, figure out how the contracts [would] be structured and [determine] exactly what we wanted to do.”
— Brian Smith, Manager, Procurement Processes, City of Mississauga
Shared JOC Contract
The other way to access a Gordian Job Order Contract is through Cooperative Contracts or Inter-Local Agreements, which allow organizations to collaborate and share the benefits of a pre-negotiated contract without having to create their own. This option is perfect for organizations that may not have enough project volume to justify a custom program but still want to take advantage of the speed and efficiency offered by Gordian’s JOC Solutions.
In these agreements, the pricing is based on regional data which guarantees that costs reflect local market conditions rather than being specific to an individual organization. This approach not only saves time and money but also provides flexibility for various project sizes and scopes. Since contracts have already been awarded, projects can begin without the typical delays associated with traditional bidding processes.
“When you talk about these types of contracts, the solicitation process has already been [completed] by somebody else, whether it’s a cooperative organization, a state, a large city or [another] government agency. And what’s good about these [contracts are that] the solicitation process has been done and that’s usually a weeks-long or months-long process. Now you have a ready-to-go contract, ready to use. In fact, Gordian is an example of one of those companies that has some of those pre-awarded [contracts]. So now you can piggyback on that contract.”
— Tammy Rimes, Executive Director, National Cooperative Purchasing Partners
Accessing a JOC Program in Five Simple Steps
Organizations can either establish a customized Gordian Job Order Contract or utilize a shared contract. Regardless of the choice, both options follow Gordian’s proven five-step process, perfected over 30 years. The five key steps include the following:
- Joint Scope Meeting: The project team meets on-site to review project timelines and specific requirements. This collaborative session identifies potential challenges, such as site constraints and develops strategies to optimize the budget effectively.
- Detailed Scope of Work: Gordian helps create a clear scope of work by outlining deliverables, including project objectives, material specifications and labor expectations. This describes precisely what the contractor will be expected to deliver.
- Price Proposal: After receiving the detailed scope, the contractor prepares a price proposal by selecting relevant tasks from the Construction Task Catalog, providing standardized pricing to enhance transparency and predictability.
- Price Proposal Review: A Gordian representative conducts a thorough review of the contractor’s proposal, ensuring it aligns with the project scope. This review process typically saves an average of 6% in construction costs, offering clarity on expenses and confirming desired outcomes.
- Job Order Issued: Once the contractor’s price proposal is approved, the organization issues a job order — formalizing the agreement and allowing work to start promptly which minimizes delays in project initiation.
Gordian Helps You Choose the Right JOC Program for Your Organization
Organizations have the flexibility to choose between a customized Gordian Job Order Contract suited to their specific project needs or an existing cooperative contract that leverages pre-established agreements. Both approaches not only streamline the contracting process but also ensure that each organization can select the most suitable option based on their unique requirements. By utilizing their expertise and resources, organizations can be guaranteed that no matter the contract type, Gordian’s proven process delivers results.
To learn more about which JOC program is the best fit for your organization, visit our dedicated JOC page today.
