Over the years, Gordian’s Job Order Contracting (JOC) has emerged as a powerful project delivery method. Among project owners this efficient process is known for streamlining construction procurement and accelerating project timelines. Among construction contractors, JOC provides a way to stand out from the competition and put more projects in the pipeline.
Whether you’re a current Gordian JOC contractor or plan to bid on a Job Order Contract soon, staying up to date with best practices is essential. This blog post shares several of our top strategies for construction contractors looking to succeed with JOC in 2025.
Understanding Job Order Contracting
Job Order Contracting is a construction procurement method that allows organizations to complete numerous projects quickly and efficiently with one contract. JOC is an IDIQ delivery method, meaning instead of bidding for each project individually, contractors bid on a book of construction tasks with preset unit prices they use to cost out an undetermined number of construction jobs over the life of the contract. This method is particularly beneficial for repetitive, operational work that requires little design.
Check out this infographic for an overview of the types of projects where JOC excels.
Best Practices for JOC Contractors in 2025
Get Your Adjustment Factor Right
Remember when we said that JOC contractors bid on a Unit Price Book instead of individual projects? That bid is a cost multiplier called an Adjustment Factor, and it’s the most important thing JOC contractors need to get right because it is the primary criterion owners use to award contracts.
The Adjustment Factor (also known as a coefficient) should include all direct and indirect costs not listed in the Unit Price Book, plus overhead and profit, including subcontractor overhead and profit. It should also account for inherent business risks, including material cost fluctuations, the cost to finance the work or poor subcontractor performance.
If awarded a Job Order Contract, you’ll apply your Adjustment Factor to each line item in a Price Proposal. Each task on that Price Proposal consists of a Unit Price multiplied by the necessary quantity multiplied by the appropriate Adjustment Factor. The total is how much you’ll be paid for each task.
The typical Adjustment Factor falls somewhere between 0.8 and 1.2. Applying that range to a $100 line item, a JOC contractor with an Adjustment Factor of 0.8 would make $80 per line item while a contractor with an Adjustment Factor of 1.2 would make $120 per line item. It’s common for project owners to require JOC contractors to develop several Adjustment Factors, one for ordinary circumstances and others for extraordinary circumstances like emergency and after-hours work, so do your homework about what those should be before you bid.
Learn more about the Adjustment Factor and other basics of JOC in this informational recording.
Think Long-Term
Another best practice for contractors is to treat JOC as a program, not a project. Contractors who perform quality work and act as good partners for project owners will be rewarded with more — and more valuable — work. Darin Terrazas, head of the Job Order Contracting division of Newton Construction & Management, explains this line of thinking.
“You have to think about how much you can make over the course of the contract rather than what you can make on every single job. For every project, we try to do good work for a reasonable price and get many more projects after that. If you can build a level of trust with your clients, you’ll have a successful program.”
Creating a steady stream of work isn’t the only way JOC benefits construction contractors. Download this eBook to find out more.
There are several ways to establish positive relationships that yield long-term success. One is to focus on collaboration. Establishing clear communication channels and fostering a collaborative environment with owners, partners and subs can lead to more effective problem-solving and project execution. Regular meetings and updates ensure everyone is on the same page, reducing misunderstandings and delays.
Another way to create long-term partnerships with owners is to find ways to maximize the project budget. Luckily, there’s an opportunity to do so baked into the JOC process. Every project begins with a Joint Scope Meeting where stakeholders walk the job site to determine the scope of work. Taking an active role in this meeting will help you stand out. In addition to pointing out potential problems, consider ways to value engineer the project by identifying ways to create the same performance outcomes at less cost. Balancing quality with cost is important, so make stakeholders aware of any tradeoffs.
By acting as a collaborator and advisor, you can set a solid foundation for long-term growth.
Leverage Cooperative Purchasing Associations
Many government entities, educational institutions and hospitals access Gordian Job Order Contracting programs via cooperative purchasing associations, group purchasing organizations and shared contracts. In 2024, more than 10,000 projects were completed using these Cooperative JOC contracts. Research opportunities to bid in your area and give yourself more chances to participate in Job Order Contracting programs.
Develop Supplier Relationships
When it comes to Job Order Contracting, efficiency is the name of the game. Contractors should establish strong relationships with reliable suppliers and streamline their material procurement procedures to keep progress moving unimpeded. This includes maintaining an updated database of pre-qualified vendors with strong track records.
Use Data to Your Advantage
Data analytics can provide valuable insights into project performance and areas for improvement. We recommend you collect and analyze data from past projects to identify trends and make informed decisions. This data-driven approach can lead to more accurate forecasting, better resource allocation and improved project outcomes.
The best practices will help current and prospective JOC contractors put more projects in the pipeline and have a successful 2025.
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