Know Your Options: Gordian’s Job Order Contracts

Organizations have used Gordian’s Job Order Contracting (JOC) programs to complete repairs, renovations and other construction projects for more than 35 years. In 2024 alone, Gordian JOC was used to complete $4 billion in construction volume. It’s easy to think that each of those projects used the same type of solicitation — that a Gordian Job Order Contract is a Gordian Job Order Contract. But that is far from the case.

Gordian offers a variety of Job Order Contracts that may or may not be appropriate for a given project, based on several factors about both the nature of the work and the project owner’s experience and circumstances. Let’s look at the different Gordian Job Order Contracts and when and for whom they make sense to leverage.

What Are Job Order Contracts?

A Job Order Contract is an Indefinite Delivery, Indefinite Quantity (IDIQ) construction delivery method used to complete many projects with one contract. Versatile, efficient and competitively awarded, Gordian Job Order Contracts are used across North America by organizations big and small to complete more than 46,000 projects annually.

Unlike traditional construction contracting where individual projects are put out to bid, with JOC, a Unit Price Book is put out to bid. Contractors bid an Adjustment Factor (also called a coefficient) on top of the Unit Price Book that represents their overhead and profit. When awarded a project, contractors use the Unit Price Book to build line item Price Proposals for the work. Each line item multiplies the unit price by the quantity by the Adjustment Factor to reach a total for an individual task. This way, project owners see exactly how much work will cost and contractors see exactly what they will be paid.

Find out more about Job Order Contracting in our JOC 101 video series.

Gordian’s Job Order Contracts

Generally speaking, Gordian offers three types of Job Order Contracting solutions: Managed, Cooperative and Self-Managed. Next up, we examine the differences between these contracts and when and by whom they are most advantageous.

Managed Job Order Contracts

In terms of project volume and dollar value, these are our most popular Job Order Contracts. Each includes a custom-built, independently verified Construction Task Catalog® (CTC). Think of the Construction Task Catalog as a souped-up Unit Price Book that uses local prices researched and confirmed by our construction experts.

Built into the execution of Managed Job Order Contracts is Gordian’s proven five-step project delivery process. Work begins with a Joint Scope Meeting at the job site for all stakeholders to discuss potential issues, find opportunities for value engineering opportunities and agree on what work will be done and how. Once a Detailed Scope of Work is drawn up, the awarded contractor uses it to develop a Price Proposal using the CTC. Before it is passed to the owner, a Gordian rep completes a Proposal Review to ensure it reflects the agreed-upon scope. This review saves an average of 6% in hard costs. The contractor then revises the Proposal (if need be) before submitting to the owner, who approves it and issues a Job Order. This is the process for any Managed Job Order Contract.

While they have a track record of success, these Job Order Contracts are not right for every organization. They take a long time to stand up since they are built from scratch and made to order: Custom CTC, specific contract language, the whole nine. Plus, contractors need to be informed about bidding on the contract and awarded. That all takes time. However, this program development work comes at no expense to the contract holder. The expense comes when the contract is used to complete a project.

Given the time and effort associated with developing Managed Job Order Contracts, they are most suitable for organizations with a high volume of operational work. In addition to scores of work, it helps to have a thriving local contractor base to work with. Experience with JOC is not necessary for adopting a managed program, but is useful to know what to expect and have a feel for the flow of a project.

Cooperative Job Order Contracts

Cooperative Job Order Contracts are a great way to get started with JOC because they are construction-ready, meaning the details have been ironed out, the CTC has been developed and contractors have been awarded. They are also a great option for organizations with a low volume of operational work or those in rural or exurban areas with scant access to contractors. 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.

In contrast to Managed Job Order Contracts, Cooperative Job Order Contracts are held by one entity (often a cooperative purchasing association; hence the name) and made available to others. But that’s not where the contrasts end. These contracts use regional prices instead of hyper-local ones. The costs will still be relevant and accurate, but not as much as they would be with a bespoke CTC. Further, an organization may be unfamiliar with some of the awarded contractors.

While Gordian and the master contract holder have done the work of vetting contractors, we understand that every organization has contractors they consider partners. That’s why we recommend that organizations notify their preferred contractor partners about opportunities in their area.

Harness the speed and efficiency of a Cooperative Job Order Contract. Enter your project today.

Self-Managed Job Order Contracting Solutions

The rarest variety of Gordian Job Order Contracts are reserved for organizations who have proven they can successfully administer their own JOC project without our involvement. These organizations independently leverage Job Order Contracts to execute projects using a modified version of Gordian’s RSMeans™ Data as a Unit Price Book. That last distinction, RSMeans Data for procurement, is important.

Many organizations use RSMeans Data for construction estimating, but it’s a mistake to use the same data for procurement/project delivery. Estimating and delivery are two different activities requiring different datasets. That’s why we offer a procurement-specific version of RSMeans Data for Self-Managed Job Order Contracts

Available in the Gordian Cloud Platform, this special dataset offers several major advantages over using an estimating cost book to self-manage a JOC program. Firstly, it puts everything in one place. Contracts, project documents, reports and records are all stored together so all stakeholders can access them easily and organizations have all their ducks in a row in the case of an audit.

Beyond convenience, visibility and transparency, using software to execute a Self-Managed Job Order Contract is considered a best practice because it enhances efficiency. Project owners can easily confirm the correct dataset is being used by the contractor, that the right Adjustment Factor has been applied to that dataset and it is set to the correct location. It gives them greater control without diluting their independence. Lastly, program management software removes barriers to collaboration. Proposals are shared and validated, changes are recorded and messages are sent between project owners and contractors in one secure platform.

In short, using a software solution like the Gordian Cloud Platform is a risk-eraser that makes Self-Managed Job Order Contracting programs more transparent, more efficient and more collaborative.

A Mutually-Inclusive Approach to Job Order Contracts

While it takes a special group to run a Self-Managed JOC program and while Managed and Cooperative Job Order Contracts are better suited for certain circumstances, organizations don’t have to choose between one or the other. They can access and deploy different types of contracts for different circumstances to maximize both their flexibility and their opportunities to deliver for their communities.

Contact Gordian to find out which Job Order Contracts are available to you.