Snapshot of Job Order Contracting (JOC)
Widely used in Europe for centuries. JOC began in the US when the Army adapted it in the early 1980's. In 1989 Texas A&M and other universities began using JOC's and by 1991 the Spring Branch ISD in Houston and other K-12 Texas schools followed suit. The recent economic downturn has brought this under utilized style of contracting for the forefront. JOC's time saving value to both the owner and the contractor is illustrated below
Traditional Bidding
| Owner RFQ for A/E |
Day 1 |
| Design & Bid Package complete |
Day 135 |
| Solicitation for Bids |
Day 140 |
| Contract Awarded |
Day 165 |
JOC Contract Option
| Owner Requests Job Order Proposal |
Day 1 |
| Job starts (based on complexity) |
Day 3-9 |
Why use JOC?
No costs and delays typically incurred with traditional procurement process.
Membership to Choice Facility Partners has no fees, audits contract use and performance to ensure quality and customer service at no cost to members.
Smaller projects benefit with lower overhead for both the owner and contractor which also applies to maintenance projects. Deferring improvements and renovations can mean a shorter life expectancy and diminished use of the facility.
Development of trust through a long-term relationship resulting in more efficient communication and more effective teamwork.
The Bottom Line
Utilizing JOC's reduces design costs and fewer project change orders, shorter completion times and significant cost savings because of lower procurement expenses.
|