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.
Considering JOC for your organization as a contractor? Explore the core benefits it offers, including how this approach streamlines bidding with a single contract, enables the completion of multiple projects, helps secure more work and grow your business and fosters better collaboration.
JOC Lets Contractors Bid Once and Complete Many Projects
JOC is a type of Indefinite Delivery Indefinite Quantity (IDIQ) contract. This means that with one, single bid, contractors can be awarded numerous projects without the need to re-bid for each individual job. By adopting this joint scope strategy contractors save time, reduce expenses and minimize the uncertainties associated with individual job bidding.
In fact, a study found that contractors using JOC reported a 21% cost savings. The efficiency of this approach stems from a simplified bidding process and preset pricing established upfront, which eliminates the need for negotiations.
“Right now I have about 15 projects that I’m doing at the same time and we already have about seven more in [the] pipeline.”
— Hussain Karimi, Owner, SMB Contracting
JOC Helps Contractors Get More Work and Grow Their Businesses
Job Order Contracting helps contractors secure more work because it simplifies and expedites the construction procurement process, enabling quicker project completion. This ensures a consistent workflow by allowing contractors to plan and manage resources efficiently.
JOC has a proven track record of success with 87% of projects delivered on-time. Contractors who excel in completing projects on-time and within budget build trust with clients, positioning themselves as reliable partners and increasing their chances of securing repeat business.
The transparency of the JOC process results in higher quality work being delivered which reinforces contractors’ reputations. To further incentivize performance, contractors who consistently meet JOC standards may receive priority consideration for future projects. This ongoing stream of work not only supports contractors in expanding their businesses but also ensures their long-term success.
“[JOC [has] allowed our company to virtually double in size.”
— Kevin Johnson, Vice President, Johnson-Laux Construction
JOC Enhances Collaboration
“As long as you do a good job and work with the owner and you develop that relationship, the work is there.”
— Scott Anderson, Owner, S.J. Anderson Construction
One of the standout aspects of Job Order Contracting is effective collaboration. By establishing a performance-based relationship between owners and contractors, JOC fosters a cooperative environment from the start. This encourages open communication and aligns project goals and expectations, which helps minimize misunderstandings.
JOC also allows teams to work together more efficiently by reducing delays and promoting a sense of partnership throughout the construction process. By offering contractors the chance to work on projects within their own communities, JOC strengthens local ties. The result is a cohesive approach to project delivery where collaboration and community impact aren’t just options — they’re built-in advantages.
“For us it means good work equals more work to that contractor. The better they do, the better the relationship is, the smoother things run, the more work we want to give them.”
— Joe Benjamin, Director of Purchasing, Pinellas County Schools
Unlock the Full Potential of Job Order Contracting
Job Order Contracting is a powerful tool for contractors, streamlining the bidding process and consolidating multiple projects under a single contract. This approach not only reduces costs and administrative burdens but also fosters a steady workflow that enhances business growth. With fixed unit prices in place, contractors can avoid time-consuming negotiations through allowing better collaboration and more predictable budgeting.
By leveraging JOC, contractors can improve efficiency, build stronger client relationships and secure ongoing work. Learn how becoming a Gordian JOC contractor can help you manage projects more effectively and achieve greater success today.
