As far as construction procurement methods go, Gordian’s Job Order Contracting (JOC) stands alone. Given its differences with more traditional contracting processes, some organizations may hesitate to try it. We understand. Breaking with tradition takes convincing. So we wanted to bottom-line the benefits of our JOC solutions for those straddling the fence. Let’s look at the top five reasons to use Gordian’s Job Order Contracting.
1. Job Order Contracting Accelerates Speed to Construction
What separates Job Order Contracting from traditional construction procurement methods like Design-Bid-Build and Design-Build is that JOC completes the bidding process for many projects all at once while satisfying pertinent regulations and laws. Contrary to a common misconception, JOC does not skip steps in the procurement process. Rather, it completes all necessary steps more efficiently.
Instead of soliciting bids for individual projects, JOC project owners solicit bids on a Unit Price Book filled with costs for construction tasks. These costs are then used to price an undetermined number of projects to be completed at an unknown time. This unique, single-solicitation process accelerates the delivery process significantly, by as much as 25%, per a report from NIGP and Gordian.
Also, Gordian has spent 35+ years honing the art of Job Order Contracting. Over that span, we’ve developed best practices and efficiencies that make project delivery even faster. Our proven five-step JOC process ensures owners get exactly what they want as quickly as possible.
2. Job Order Contracting Enhances Cost Transparency and Budget Control
With traditional construction methods, project costs are often opaque at best. Owners receive a lump sum cost with little indication of how that sum breaks down. JOC, on the other hand, makes costs transparent. Not only do project owners and contractors share the same Unit Price Book, but Price Proposals are itemized like a receipt, enabling owners to see what they are paying for everything. This enhanced transparency maximizes project budgets and fosters trust between all parties.
3. Contractors Have Extra Motivation to Do Quality Work
It helps to think of Job Order Contracting as an ongoing program instead of a singular project. A contractor’s participation in the program is directly tied to the quality of their work. In other words, if a contractor does an excellent job on Project A, they have a better shot at being awarded Project B. This incentivizes them to go the extra mile to perform their absolute best. Beyond doing tremendous work, they are motivated to make the most of the project budget and create ongoing, mutually beneficial partnerships with project owners. It’s a win-win situation.
Find out more about how Job Order Contracting benefits owners, contractors and communities in our JOC 101 video series.
4. Flexible Contract Access
Organizations have multiple means of access to Gordian’s Job Order Contracts. This optionality allows them to play to their strengths and match our solutions to their needs. You can read about all the options in detail here, but here’s a brief rundown in the meantime:
Managed JOC
This is Gordian’s most popular variety of Job Order Contracting. Each program includes a custom-built Unit Price Book we call a Construction Task Catalog® (CTC), full of local prices researched and verified by our construction procurement experts. Project owners are involved in building Managed Job Order Contracts from the ground up. That means writing specific contract language, participating in CTC development and, with Gordian’s help, notifying the local contractor community about bidding. Given this time and effort, Managed Job Order Contracts are most valuable for organizations with a high volume of operational work.
Cooperative JOC
This option is great for organizations that want to try JOC without expending as much effort as they would with a Managed JOC program. Cooperative JOC refers to construction-ready contracts held by a third party (often a purchasing cooperative) and accessed by many organizations. Gordian and the master contract holder do all the contract development work, collaborate on a Unit Price Book and award contractors. All project owners need to do is access the contract, and they can start work in days. Nothing changes in terms of project execution. Gordian is still there to make sure project owners get the work they want, and contractors are paid a fair price.
Another advantage of Cooperative JOC is that project entry is a breeze. Watch this video for more:
Self-Managed JOC
Finally, Gordian offers Self-Managed JOC contracts for those organizations with the experience and the personnel to implement and oversee a program on their own. These organizations act independently, executing projects using a version of RSMeans™ Data modified for construction procurement. This procurement-specific dataset ensures project owners have all the costs they need, and that contractors are using the same costs.
5. Gordian’s Expertise
Gordian is not only the biggest and most successful JOC provider; we’re also the JOC standard-bearers. However, what separates Gordian’s Job Order Contracting from other JOC providers isn’t just our industry-leading costs or our award-winning software — it’s our people. We offer unmatched experience and unrivaled knowledge, and our on-site reps live in the communities where they work. Across North America, our people care that construction work is done well and that both project owners and JOC contractors are successful over the long haul.
We hope these five reasons are all you need to trust Gordian’s Job Order Contracting solutions with your next project. If you have more questions, no problem. Contact our team to learn more about what our JOC solutions can do for you.
