Using Job Order Contracting (JOC) for renovations, repairs and straightforward new construction reduces time to construction and results in high quality work, according to market research. However, deciding to access JOC is just the first step for procurement leaders. They must then decide how to implement JOC.
Procurement leaders have three options to consider: Running a JOC program in-house, joining a contractor-led program, or partnering with a third-party Job Order Contracting provider. This decision is crucial and could determine the success or failure of the program. Given the criticality of this choice, and the consequences of choosing incorrectly, it’s important for the procurement community to understand how working with a Job Order Contracting provider can help them run a best-in-class JOC program.
Here are six great reasons to work with a Job Order Contracting provider.
A Job Order Contracting Provider Can Ensure Program Compliance
Public procurement is heavily regulated, particularly when it comes to capital-intensive purchases like construction work. While these compliance procedures may be burdensome, they are necessary. Public procurement professionals are trusted with the community’s purse. Regulations and oversight measures prevent mismanagement of taxpayer funds and root out corruption.
An experienced Job Order Contracting provider can help the procurement office navigate the regulatory environment and keep their JOC program out of hot water. They’ll act as a second set of eyes and make sure all the i’s are dotted and the t’s are crossed, so the procurement office can use JOC with the confidence that their program is legal, transparent and fair.
A Job Order Contracting Provider Can Supply Verified Local Costs
An accurate Unit Price Book is foundational to any successful JOC program, as tasks for Job Orders will be priced directly out of the book. A Job Order Contracting provider can supply local costs for these tasks instead of localized costs one might find in published construction cost books. There are two reasons why that matters. The first is financial.
Possessing local costs for your JOC program ensures you pay a fair and accurate amount for your projects. Localized costs will get you pretty close to the correct project cost, but “pretty close” isn’t precise enough, especially as public budgets are shrinking. Local costs from a JOC provider help you maximize your dwindling financial resources. But that’s not the only reason to use them.
An accurate Unit Price Book provides a single source of truth for the procurement office, the facilities team and awarded contractors. These shared, verified costs eliminate delays due to pricing negotiations at the outset of a project, and if the scope of the project changes, all parties return to the Unit Price Book to move forward together.
In short, a single source of local costs squeezes the most out of a budget and keeps the project team on the same page.
Localized costs will get you pretty close to the correct project cost, but “pretty close” isn’t precise enough, especially as public budgets are shrinking.
A Job Order Contracting Provider Can Conduct Contractor Outreach
Procurement professionals find it challenging to interest contractors in completing renovations, repairs, replacements in kind and the simpler projects JOC is best suited for. This is particularly true now when the demand for contractors far outweighs the supply.
An elite Job Order Contracting provider will help procurement teams get the attention of local contractors. They’ll reach out to general contractors and subcontractors to make them aware of the JOC opportunity, train them in Job Order Contracting best practices, including how to bid a JOC contract, and answer any questions they may have. They’ll do all the legwork on behalf of the procurement office in an effort to encourage contractor participation and create a positive experience for contract owners and contractors alike.
A Job Order Contracting Provider Can Help Develop a Scope of Work
It is common for procurement teams to know what they want done without having clarity about how they want it done. A JOC partner can – and should – fill in those knowledge gaps and offer suggestions about how to accomplish project goals. Taking a hands-on approach, a Job Order Contracting provider can aid in shaping a project by working with the contractor and the owner to create a clear and comprehensive scope of work that meets project objectives.
A Job Order Contracting Provider Can Save Project Costs
Procurement professionals excel at contract management. That’s their purview, their locus of genius. They are not construction experts. This puts them at a disadvantage when reviewing a Price Proposal for construction work. They may not know whether a material is the best choice for a project or whether a task or piece of construction equipment is necessary. That’s where a Job Order Contracting provider can help.
Before a Price Proposal reaches an owner, a Job Order Contracting provider should review it line-by-line to make sure the procurement office pays only for what it needs and gets exactly what it wants. This review can have serious tangible benefits. Gordian, for instance, found that reviewing Price Proposals for our clients saves an average of 6% in hard construction costs. That 6% represents real money, funding that can be used to better their communities in a time when funding is hard to come by. It makes a real difference.
Gordian found that reviewing Price Proposals for our clients saves an average of 6% in hard construction costs. That 6% represents real money.
A Job Order Contracting Provider Can Mediate Between Stakeholders
A construction project can be a pressure cooker. Tens of thousands of dollars are spent. Timelines zoom by. Unexpected difficulties change the scope of the project. A tense environment can strain the relationship between project owners and contractors. A Job Order Contracting provider can ease the tension, resolve disputes and foster a spirit of collaboration that keeps the project team on the same page. And with all stakeholders on the same page, projects progress successfully.
Gordian: A Job Order Contracting Provider That Acts as Part of Your Team
Local costs. Program compliance and support. Flawless project execution. These are all excellent reasons to work with a Job Order Contracting provider. But there’s only one Job Order Contracting provider with a 30+-year track record of delivering all these benefits and more. That provider is Gordian. Our unrivaled Job Order Contracting experience, combined with our unmatched insights, technology and expertise give our clients the confidence to use Gordian JOC for more than 30,000 projects every year.
