What Is Job Order Contracting (JOC)?

Job Order Contracting is a unique method of contracting that can be negotiated with one or more contractors. They maintain an emphasis on partnering and teamwork between owners and contractors, and in turn offers a way to execute a variety of construction and maintenance projects for renovation, rehabilitation, and repair work for many facilities in a timely manner. JOC has two primary aspects: the contracts are an indefinite quantity, and indefinite delivery.

Indefinite Quantity

The indefinite quantity aspect of JOC lets facility owners determine prices for equipment and material needs before choosing a contractor by using a unit price book. A unit price book can be purchased from a company such as Jocinfo.com, but whatever unit price book is chosen is open to negotiation by the facility owner. Contractors can bid on a contract using an adjustment factor to be applied to the unit price book. It is common for contractors to bid two adjustment factors: one for projects taking place during working hours and one for those taking place during other than working hours. The facility owner and a contractor can negotiate an agreement on an adjustment factor to be applied to the unit price book before the project begins. This negotiation will last for the duration of the contract.

Indefinite Delivery

The indefinite delivery aspect of JOC allows facility owners to have projects begun at the most convenient time for the facility owner. The facility owners are not required to set a delivery date for the project before the contract is negotiated, nor are they required to provide information specific to any one project, but only need to make general information available about their facilities.

Why use Job Order Contracting (JOC)?

Job Order Contracting is beneficial to facility and business owners, as well as to contractors, for many different reasons.

Benefits for Facility Owners

For facility owners, JOC eliminates the time and the costs of completing the usual arduous processes required to bid multiple projects, especially if those projects must be completed in a small time frame. Because of this JOC is especially favored by institutions such as schools and universities that have projects that must be completed while students are absent from the facility. Many times schools will have to begin and complete projects over a summer or winter break, and attempting to have multiple projects set up and bid in that time is an unrealistic expectation. Due to its indefinite delivery understanding, JOC lets these institutions request work to begin on a project as soon as it is needed.

Benefits for Contractors

JOC is beneficial to contractors as well as facility owners. Since the contract has an indefinite delivery date, the potential for additional projects within the same contract can be an ongoing incentive for contractors. If contractors received additional projects under the same contract, they would also be assured the same adjustment to the unit price book for any additional projects.

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