Cooperative Construction Procurement: Setting the Standard for Reliable, Compliant Project Delivery

Introduction to Cooperative Construction Procurement

Associated with the procurement of office supplies and other goods, the offerings at North American cooperative purchasing associations, or co-ops, have grown more sophisticated over time. These days, organizations can buy IT services, facility condition assessments, lab equipment, and other high-end items and services via co-ops. Furthermore, as budgets and workforces shrink – particularly in the public sector – the volume discounts and ease of use co-ops offer make them an attractive option.

In recent years, purchasing cooperatives have added construction services to their offerings, including Gordian’s Cooperative Job Order Contracting (JOC). Responsible for thousands of projects every year, Cooperative JOC is widely available and offers many benefits.

Let’s look at how cooperative construction procurement works, the problems it solves for users and the advantages of using Gordian’s Cooperative JOC. We’ll also highlight several successful projects and debunk myths about this innovative approach to construction procurement.

Understanding Cooperative Construction Procurement

Typically, when an organization wants to complete construction work, they collect many bids for one project. It is the burden of the organization to notify contractors about the opportunity, vet bids, award the project, negotiate pricing and finalize the details of the contract. Cooperative construction procurement relieves some of that burden.

The co-op or master contract holder is responsible for ironing out and awarding contracts its members can access as needed, increasing speed to construction and reducing administrative effort. Further, the prices in these contracts are often – but not always – discounted, as contractors anticipate completing a high volume of work with members of the cooperative.

This couldn’t be further from the truth. Cooperative JOC satisfies all competitive bidding requirements and complies with all applicable procurement law. Unlike more entrenched delivery methods, Cooperative JOC does so one time and upfront for the life of the contract instead of on a project-by-project basis.

Why Use Cooperative Construction Procurement?

1. Fill capacity gaps – Not every procurement professional is well-versed in writing solicitations for construction. With cooperative construction procurement, they don’t have to be. This work is already finished.
2. Reduce the procurement cycle – Work begins faster than it does with “hard bid” jobs. Some projects kick off in days.
3. Generate contractor interest and availability – Contractors are awarded and incentivized to take on projects of all sizes.
4. Access value easily – Pricing negotiations are completed on behalf of co-op members.

As you can see, cooperative construction procurement offers several benefits for organizations in search of an efficient way to complete projects despite strapped financial and human resources. However, not every cooperative construction procurement program is the same. They vary in size, scope and quality.

Next up, we look at the gold standard in cooperative construction procurement.

Cooperative JOC: Proven and Compliant

Gordian’s Cooperative Job Order Contracting (JOC) programs exemplify the best in cooperative construction procurement. Used across the United States and Canada, Cooperative JOC has earned a reputation for quality work delivered efficiently with compliance guaranteed. See all of Gordian’s cooperative partners.

How JOC Works

Let’s start with an overview of Job Order Contracting. In simplest terms, JOC enables organizations to do many projects with one contract. This explanation begs the question: How do you bid on a non-existent project? Rather than bidding on projects, contractors bid on a Unit Price Book we call a Construction Task Catalog® (CTC).

Backed by 20,000+ hours of research by our experts and including price indicators that govern material across various sizes, the Construction Task Catalog contains pricing for the work the master contract holder expects to do over the life of the program. In the case of Cooperative JOC, the purchasing organization holds the contract and its members access it.

All contractors have an equal chance of being awarded a Cooperative JOC contract. If an organization has solid relationships with contractors, we encourage them to inform those contractors about bid opportunities. Additionally, Gordian has an internal team dedicated to contractor education and success. This team holds regular contractor information meetings, where they explain how to bid on a Cooperative JOC contract in great detail, giving all attendees an equal opportunity to participate.

When it’s time to complete a project, the awarded contractor, the owner and owner’s reps, plus a local Gordian expert meet at the project site to discuss the scope of work. The contractor uses this Detailed Scope of Work to develop a Price Proposal. Gordian reviews the proposal before it reaches the owner to confirm it includes only what is necessary to complete the job, saving 6% in hard costs on average. The contractor makes needed revisions until it represents the scope of work with 100% accuracy, at which point the owner approves it and the project begins. Once work starts, a Cooperative JOC project proceeds like any other.

Benefits of Cooperative JOC

There are several reasons Gordian’s Cooperative JOC is trusted with thousands of projects every year. These benefits make it an effective tool for project delivery.

1. Regulatory compliance – Every Gordian Cooperative JOC contract is competitively bid and compliant with applicable procurement laws, protecting organizations from fines and other negative outcomes.
2. Reduced staff workload – With the Construction Task Catalog developed and contractors awarded, Gordian and the co-op have completed a significant portion of the procurement legwork. Plus, Gordian acts as an extension of an organization’s team to make sure every step of the project advances smoothly.
3. Long-term contractor relationships – Cooperative JOC creates partnerships between owners and area contractors, who are motivated to do excellent work by the potential of a steady stream of projects.
4. Increased speed to construction – With contracts firmed up on behalf of a co-op’s members, work can begin in weeks, sometimes days.
5. Cost transparency and control – Since all Cooperative JOC work is priced out of the CTC, owners know exactly what they’re paying for and where their biggest cost centers lie. Further, Gordian’s JOC program management software captures every scope and price change, so organizations can justify every single decision.

When to Use Cooperative JOC

As organizations become more familiar with Cooperative JOC, they are using it in increasingly innovative ways. They are finding that various types of projects are “JOC-able.” Here are a few common uses of Cooperative JOC.

1. Straightforward new construction – Work that requires little to know design work – like airplane hangars or garages – is ideal for Cooperative JOC because they are simple and easily priced out of the CTC.
2. MRO work – If you can scope a project and price it quickly, like with maintenance, repair and operation work, Cooperative JOC is a good fit.
3. Time sensitive projects – With competitive bidding done at the outset, Cooperative JOC is a great choice for when your window for completion is closing. Also, since work is priced out of the CTC, organizations pay no premium for emergency work. The costs are the costs.
4. Fuzzy scope work – Given that a collaborative approach to scoping construction is a hallmark of Cooperative JOC, it’s a good choice for when an organization knows what needs to be done but needs help figuring out how to do it.
5. Advanced work and punch-list work – Cooperative JOC can be paired with other project delivery methods and used for preliminary and/or finishing work.

Belong to a cooperative and want to see if Cooperative JOC is right for your next project? Use our project entry form to get started quickly.

It is up to owners to confirm whether their intended funding source dictates their means of construction procurement and to follow all guidelines. However, in direct response to the myth, it should be noted that grant and federal funding has been used to compete a bevy of Cooperative JOC projects, including a $28 million project completed by the City of Victorville (CA) and the construction of a DNA-processing lab for the County of Santa Cruz (CA).

Successful Cooperative JOC Projects

Below are a few examples of how Gordian’s Cooperative JOC is helping organizations build better communities.

School Kitchen Renovations Completed During Summer Recess

When School District 27J (SD27J) in Brighton, Colorado, needed to overhaul kitchens at four separate schools over the span of the summer, they turned to Gordian’s Job Order Contracting via Sourcewell, a purchasing cooperative. The district had never used JOC before, but after hearing about it at a conference, Construction Project Manager Becky Smith thought it would help complete the renovations in a short amount of time.

The project was awarded to a firm specializing in Job Order Contracting, and the contractor and the district developed a plan that maximized the project timeline and budget. Crews removed and replaced old cafeteria equipment, and when the supply chain hit a snag, they came up with a solution that allowed the cafeterias to operate.

School leaders were so delighted with JOC that they expanded the scope of work to include gymnasium renovations and an expansion of the band room. All work, valued at a total of $2.7 million, was finished before the next school year began. The facility renovations made such a profound impact on the community that Gordian honored SD27J and JOC Construction with a 2024 Award of Merit in Job Order Contracting.

City Installs Memorial to Honor Fallen Heroes

For decades, six different plaques acknowledging veterans and services members were scattered across the City of San Mateo, California. When it came time to consolidate them into a single Fallen Heroes Memorial, city leaders leveraged a Cooperative JOC contract via Sourcewell to expedite work.

“Using Gordian’s Cooperative JOC allowed us to move this deeply meaningful project forward without delay,” said Parks and Recreation Director Joanne Magrini. “It streamlined our procurement process, gave us access to trusted contractors and enabled us to focus on the memorial’s significance rather than getting bogged down in red tape.”

The contract was awarded to a California construction firm with over 20 years of experience with Job Order Contracting. Construction of the memorial began in December 2023. The awarded contractor installed seven stainless steel monoliths in San Mateo’s Central Park. When viewed from a distance, the monoliths form the single image of a red poppy flower, an allusion to the famous war poem “In Flanders Fields.”

Additionally, bricks were installed in the park, some of which were paid for by donors, including the awarded contractor. Donations for the project exceeded $315,000 – more than enough to cover the final cost of $241,751 – underscoring the community’s support for the project. The construction of San Mateo’s Fallen Heroes Memorial was honored with a 2024 Award of Merit in Job Order Contracting.

City Installs Solar Panels to Promote Sustainability

The City of New Albany, Ohio houses and repairs an impressive fleet of vehicles inside a long garage belonging to the Public Services Department. The garage’s angled roof made it an ideal candidate for outfitting with solar panels, an environmentally friendly decision in keeping with the city’s Strategic Plan. To install over 5,500 square feet of solar panels, city leaders turned to Gordian’s Cooperative JOC.

The general contractor and a subcontractor specializing in solar technology collaborated on a Price Proposal and completed the project in merely eight weeks. The panels are estimated to remove 112 metric tons of carbon dioxide from the atmosphere on an annual basis and cut the electricity bill in half at the City of New Albany’s public service complex, creating an incredible return on investment.

Hear more from Sourcewell and Gordian about how cooperative construction procurement unlocks efficiency in this recorded webinar, available on demand.

Cooperative JOC: Reliable, Compliant, Efficient

Cooperative JOC delivers thousands of high-quality projects every year. Not only are these projects procured, started and completed quickly, they do so while maintaining regulatory compliance. As the gold standard of cooperative construction procurement, Gordian’s Cooperative JOC is reliable approach to project delivery and an intelligent way to allocate resources and build better communities.