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Job Order Contracting Saves Time, Improves Project Quality Industry Study Shows

February 9, 2016

Method gets high satisfaction and efficiency marks
Greenville, S.C. – The Gordian Group, the leading provider of construction cost analytics, estimating information, pricing data, and procurement software and services, shared the results of an industry study that finds the Job Order Contracting (JOC) construction-procurement system saves time and money, is easy to use and increases project efficiency.

The “Job Order Contracting Performance 2015” study was published today by Arizona State University. It was compiled by the university’s Performance Based Studies Research Group at the Del E. Webb School of Construction. Respondents to the survey included both facility owners in K-12, higher education, healthcare, and state, local and federal government, as well as construction companies. The combination of quantitative and qualitative data collected relates to more than $5 billion of construction services delivered in JOC projects.

Key survey results include:
•    99% of facility owners recommend JOC. 
•    96% of facility owners report satisfaction with projects procured using JOC.
•    87% of JOC projects are delivered on time and 91% on budget, compared to 2.5% of all projects.
•    Facility owners estimated JOC saved an average of 25% administrative costs over traditional delivery methods.
•    Contractors report JOC projects have a 60% greater client satisfaction rating.
•    Contractor companies reduced their administrative costs more than 20% with JOC.
•    Owners noted the importance of proper technology to manage JOC, with slightly more than three-quarters of owners (77%) reported using JOC-specific technology.

“JOC is moving into the mainstream of construction procurement methods, alongside Design-Bid-Build and other traditional systems,” said Dean T. Kashiwagi, Ph.D., P.E., who led the study. “JOC can be a great way to achieve best value because it consistently maintains high performance and success on a variety of project types and sizes and truly focuses on a contractor’s knowledge.”

“The survey shows facility owners are highly satisfied with JOC,” said William Pollak, CEO of The Gordian Group. “They experience better outcomes and savings with their projects thanks to this fast-track construction-procurement method.”

“Sharing the expertise of all parties—facility owner, JOC provider, contractors—is behind the success in most JOC projects because projects are on time, on budget, and all parties are satisfied.” said Pollak. 

The survey was commissioned by 17 industry stakeholders, including The Gordian Group. Forty-seven facility owners in K-12, higher education, healthcare, and state, local and federal government, as well as 13 contractor companies participated in the study.

Download the full study here.

About The Gordian Group
The Gordian Group is the leading provider of innovative construction data, software and services to organizations pursuing efficient and effective construction planning, estimating and procurement. As the pioneer of Job Order Contracting, Gordian’s ever-growing portfolio of procurement solutions leverages highly specialized cloud-based project management software to deliver rapid deployment and long-term cost savings for the nation’s facility and infrastructure owners. In 2014, Gordian acquired RSMeans, a leader in data, analytics and life cycle cost analysis for commercial and residential construction. In 2015, The Gordian Group acquired Sightlines, the leading provider of facilities’ benchmarking data and expertise to higher education institutions. Today, The Gordian Group draws on its highly specialized engineers, software and unique proprietary data sets to solve the construction information, planning and management needs of people in building construction, building products manufacturing, education, healthcare, retail, insurance, legal, and government.

Job Order Contracting is a procurement method using a single, competitively bid contract to cover multiple construction projects over a fixed term or maximum dollar value. Selection of bid winners is based on best overall value or lowest bid, depending on owner preference, and in some cases state regulations.