Many times a facility manager receives their budget for the year at the beginning of their Fiscal Year (FY). This budget may include set-aside funding for repair, maintenance or small construction projects. Most facilities are on a “use it or lose it” program, meaning if they don’t spend their budget by the end of the FY, they lose that funding as it doesn’t roll over into the next year. So facility managers end up scrambling at the end of the year. They may be thinking that they need to figure out how to spend the remainder of their funds before they expire. The traditional design-bid-build procurement process just takes too long to get a project up and running in such a short amount of time.
This is where Job Order Contracting (JOC) comes to the rescue. With a JOC solution based on preset unit pricing, the Price Proposals are good for a year, as long as the Detailed Scope of Work doesn’t change, so facility managers are able to identify potential projects 5 to 6 months prior to the end of their FY. And on the last day, at the 11th hour, they’re still able to reach into their back pocket, pull out these detailed and accurate Price Proposals, and issue PO’s to the contractor without any fear of losing their funding.
