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.