Job Order Contracting - Key Elements

Key Elements

A JOC contract follows certain procedures leading to an agreement focusing on achieving good work performance and reasonable costs. Among the procedures leading to the formalization of a JOC contract are the following items and provisions:

  • Standard specifications established in a master contract with a summary of work, also including any specific or client-driven conditions.
  • A unit price book containing preset unit prices for construction tasks.
  • Facility owner issues a request for qualifications (RFQ), evaluating firms using best-value, performance-based criteria, or an invitation to bid awarding to the lowest responsive and responsible bidder.
  • A guarantee of minimum amount of work for the contractor. This is usually a small amount for consideration – a requirement in most states for contracts.
  • Issuance of contractor’s work orders based on owner’s requirements.
  • Costs for individual work orders are calculated by multiplying the preset unit prices by the quantities multiplied by the contractor’s coefficient.
  • Open communication between facilities team and JOC contracting team, including a kick-off partnering session between everyone utilizing the contract.

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