Use of Job Order Contracting, by Corinne Maddox, CCM, CFM

Facility managers need a variety of tools in their toolbox to select the best and most appropriate for their situation. Job Order Contracting (JOC) is ideal for minor construction and repetitive service contracts. In a typical JOC, bids are solicited from pre-qualified contractors. Bids are based on either 1) a unit prices of a pre-defined schedule of services (such as space planning per square foot, new partitions per linear foot, carpet per yard, etc.) or 2) an industry unit price guide (such as RS Means) and the contractor's proposed multiplier. It is common to offer a 1-2 year base contract with 2-4 optional one-year renewal periods, and pricing is best if a minimum and maximum dollar volume of work are identified. Costs for ongoing projects are determined by applying the actual quantities times the contract unit prices. JOC is faster, more cost effective and simpler to manage than traditional contracting methods. Time for bid package development, bidding and contracts are eliminated for individual work orders. A larger and steadier volume of work, reduced overhead, and simpler billing reduces contractor costs substantially. JOC usually results in dedicated contractor personnel that become intimately familiar with the facility and requirements, which reduces the need for design and specifications, and streamlines communications. Work quality is improved with the potential for contract renewals, project costs can be estimated without bidding, and change orders are rare since prices are based on actual work done. JOC is a great tool for a busy facility manager.