JOC Contractor Spotlight: Newton Construction & Management

Contractor’s JOC Division Thrives for Decades

Successful Gordian Job Order Contracting (JOC) programs depend on a deep and talented bench of construction contractors. In exchange for being ready to complete an organization’s operational work and working within the unique parameters of the JOC process, these dedicated construction pros are rewarded with the potential for a steady stream of work. It’s a win-win.

This series profiles construction contractors who have made the most of the opportunity to participate in a Gordian JOC program. They’ll share how they became involved, how it has helped them strengthen their project pipeline and advice for contractors who want to participate in Gordian JOC programs in their area.

Company Background

Headquartered in San Luis Obispo, California, Newton Construction & Management has been serving the Golden State since 2001. The company has a successful track record of providing excellent general contracting services. This can largely be attributed to their top-notch network of subcontractors who play a key role in completing a mix of residential, commercial and public sector projects.

Getting Involved With a Gordian JOC Program

Newton Construction is unique in that it has a dedicated Job Order Contracting division. At the head of that division is Darin Terrazas, a man uniquely qualified for his position. His father was the director of Job Order Contracting at another construction firm and introduced Darin to the single-solicitation process nearly 20 years ago. His JOC education was dynamic and all-encompassing, including skull sessions over lunch with Gordian founder and creator of Job Order Contracting, Harry H. Mellon.

Darin’s experience and expertise made him the ideal candidate to lead Newton Construction’s JOC division. Under his guidance, that division has grown by leaps and bounds.

“I started with one contract for $1 million at Cal Poly San Luis Obispo. Nine or 10 years later, we have 13 contracts, and we do work all the way from the Bay Area down to Oxnard and into Fresno. The growth has been great, and we’re excited to continue this type of construction,” Darin says.

Get more info about participating in a Gordian JOC program and how JOC can help you put more projects in the pipeline and grow your business.

Successes and Milestones

Terrazas estimates that Newton Construction completes approximately 30 JOC projects per year with area universities, including San Jose State University, Fresno State University and the California State University System.

“Most of the time we support new building construction, revamp historic buildings, or repurpose existing buildings with new layouts for the tenants. The tenant improvements include all the trades – electrical, flooring, paint, acoustical ceiling, windows, plumbing, drywall framing, concrete. We do a lot of HVAC retrofits and energy systems.”

Newton Construction can take full advantage of JOC’s versatility thanks in part to participation in a Cooperative JOC program. Under Cooperative JOC, many organizations access a master Job Order Contract held by another entity, in this case, the purchasing co-op Sourcewell. These are construction-ready contracts with set details and terms that allow projects to begin in a matter of days. Terrazas also credits the success of Newton Construction’s JOC division to healthy relationships with the construction contracting community.

“We’ve developed partnerships with the top subcontractors local to the Job Order Contracts. It works better for us and they’re usually more familiar with clients.”

Darin lights up when he discusses a project for the City of Santa Maria, about 65 miles from Santa Barbara.

“The senior engineer for the city was looking to get a park project done and he had a very tight timeline because he was funding the work with a grant. He knew that taking the time to develop a full set of drawings and sending it out for bid would jeopardize losing that grant funding. He was introduced to our Job Order Contracting program and I worked with him to flesh out the scope of work. We refined the scope until we could build a price proposal,” Terrazas explains.

“It just started from raw land, and we worked closely with the client and an architect to build a nice park. It’s really special for us because we get to see the public use it. We’ve had a lot of unique projects in Job Order Contracting. That was one of the fun ones.”

Since completing this project within the funding timeline, Newton Construction has built a second park for the City of Santa Maria with JOC.

Find upcoming opportunities to bid on Gordian JOC contracts in your area.

Advice to Aspiring JOC Contractors

As you may imagine given his experience, Darin has a wealth of perspective and advice to share with construction contractors considering taking part in a Gordian Job Order Contracting program.

“Job Order Contracting seems to be more resilient to economic downturns. In the mid-2000s when everybody was really struggling, the JOC program [was] going stronger than ever. We were doing deferred maintenance work for municipalities and universities, the kind of work you always have to do. In that way, it’s insulated from the economy,” Terrazas tells us.

Lastly, he encourages his colleagues to adopt a long-term mindset when it comes to JOC.

“JOC is a steady source of construction volume, but 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. So, it’s a little bit different than conventional construction, and I like that. I like building relationships and letting our customer service shine. It’s a good atmosphere to work in because you and the client are on the same team. If you can build a level of trust with your clients, you’ll have a successful program.”