If it weren’t for job order contracting, there is little question that a great deal of construction sites would miss their deadlines. One of the problems that many companies have found when contracting with a variety of separate construction projects on the same site is inefficiency. Without an organized plan in place, it can be much more difficult and take a much greater length of time to complete a project. It is because of this reason that job order contracting is so important. Job order contracting is essentially a type of plan that helps encourage organization on a construction project through umbrella contracts, sometime multi-year ones. This type of contract is typically a collaborative effort that focuses on creating a strategic plan for a construction project.
Saving Time and Money
One of the biggest reasons for utilizing job order contracting is the fact that it can dramatically simplify things. For example, if a company did not use job order contracting, they would instead have to contract out each separate section of the construction job to different contractors. This means they would have to have an individual contract with their framers. They would have to negotiate with a plumbing company, come to an agreement and write a contract with a painting company, as well as every other type of construction that they need done on their project. Going about a construction process in this manner is extremely tedious and can turn a simple job into a complete nightmare.
It is because of this that it is so advantageous to utilize job order contracting, which is basically the process of creating one contract that covers all of the processes needed to complete the construction project. Not only does this save a huge amount of time when it comes to hammering out the details and fine tuning a contract before construction starts, but it dramatically decreases the time in which a construction project can be completed. Job order contracting cuts down on the overall costs to complete a project, yet increases the overall quality of work. One single contract can be negotiated at the beginning of a project, which will be based on the contractor completing projects on the construction site one after another.
Simplifying Construction Projects
Another major benefit of job order contracting is that the process follows a set of rules, which also makes things much easier and more predictable. The contractor and the owner will initially have a meeting and assess the work that needs to be completed. After assessing the scope of work that needs to be done, as well discussing an overall timeline for the project, the contractor creates a price proposal. The contractor typically uses software and a Unit Price Book to derive the price proposal, which is then given to the owner of the project. If the owner likes the price proposal and schedule that the contractor has created, the two sides can sign a contract and get to work in a short period of time. Rather than going through the hassle of contracting with a bunch of different companies, it can be much simpler to use job order contracting. Those companies that head down this path when it comes to tackling their construction projects will find that they save a lot of time and hassle, as well as decrease overall costs for their project.
