Job Order Contracting (JOC) continues to be a confusing topic to a lot of people. So, what is it? JOC is a complex method where multiple projects are able to be completed through a competitively awarded contract, faster and with a higher quality of work. This process has been proven to reduce construction time and lower admin costs through the procurement process. JOC is offered through Gordian and available to OMNIA Partners, public sector. There are many topics covered when talking about JOC, so what is a myth and what is a fact? Here are 5 Myths and Facts that will help you with construction procurement:
FACT: You can invite any contractors in your area to participate in your JOC program, and you absolutely should invite them. If you partner with Gordian to get your JOC program up and running, we’ll take care of all the legwork for you. We will reach out to contractors and subcontractors in your area and teach them how to bid on your Gordian JOC program. We’ll even train them to follow tried and true Job Order Contracting best practices, so your projects run smoothly. In the end, you have a pool of local, competent, JOC contractors eager to take on your construction projects.
FACT: Job Order Contracting has been around for a long time. Gordian founder Harry Mellon created it in when he served in NATO in the early 1980s as a way to get routine projects started quickly. Like today’s facilities and procurement professionals, Harry was responsible for maintaining many different spaces and found it took him an exorbitant amount of time to get things done using traditional procurement methods like Design-Bid.
Harry brought JOC to the states and founded Gordian in 1990. Today, there are more than 300 active Gordian JOC programs that complete a combined $3.2 billion in construction volume every single year.
FACT: It’s best to think of JOC as a complement to your current practices, another project delivery tool to use when you need it. There are projects where JOC is the best fit, and there are projects where it is not. Because JOC is designed to complete a succession of pre-defined construction tasks, it’s perfect for a variety of construction projects including repairs, renovations and maintenance work, especially when short timelines or fixed budgets are involved. Routine, simple projects: That’s the JOC sweet spot.
FACT: Recent research found that the transaction costs of implementing a Job Order Contract are comparable to traditional project delivery methods like Design-Build, Design-Bid-Build, and CM-At-Risk. So why is JOC perceived as more expensive and more time intensive? One answer might be familiarity. Learn more about the research completed from procurement professionals here.
FACT: The same research mentioned above found that more than 58% of procurement professionals surveyed said four or fewer people are involved in their JOC process. On the other hand, nearly half of those surveyed said traditional project delivery requires more than five people. These statistics back up what villages, towns, rural schools and local government entities already know: JOC is a viable construction procurement option for small, overextended teams.
JOC allows for you to get more routine projects completed, without replacing your current and more traditional projects. No matter the size of your organization or project, Gordian is equipped and ready to take on your new project. OMNIA Partners happily partners with Gordian to ensure customers are getting the facts while completing their projects. Learn more about Gordian and OMNIA Partners today!
Read the original blog from Gordian HERE