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Gordian’s 2023 Job Order Contracting Year in Review

By Gordian

Organizations across North America took their use of Gordian’s Job Order Contracting (JOC) to new heights in 2023. From government entities and public school districts to college campuses, hospitals, care facilities and the U.S. federal government, our customers used our efficient construction procurement solutions to deliver for their communities like never before. In this post, we’ll analyze how our customers used JOC in 2023, including the total number of projects they completed and the financial value of those projects.

What is Job Order Contracting (JOC)?

Before we look at how Gordian’s JOC was used last year, it’s useful to define what JOC is. Job Order Contracting is an indefinite delivery indefinite quantity (IDIQ) construction project delivery method that allows many projects to be completed through one competitively-awarded contract. This unique, single-solicitation process empowers organizations to start projects faster according to a report by NIGP and Gordian, and it creates partnerships between project owners and JOC contractors, resulting in higher-quality work.

With a successful track record extending north of 30 years and well over 300 active programs, Gordian leads the industry in JOC experience and expertise.

As a Job Order Contracting pioneer, Gordian knows what it takes to implement and support an effective JOC program. Learn about our Job Order Contracting best practices.

More than 33,000 Projects Completed

2023 saw an explosion of activity, with 33,082 Gordian Job Order Contracting projects completed. That’s a 10% increase from 2022, when our customers worked with us to complete just under 30,000 projects.

More than 27,000 of those projects used standalone JOC contracts. These custom programs involve our cost engineers and construction experts developing a Construction Task Catalog® (CTC) using accurate, local costs for the work our customers expect to complete over the life of their JOC contract. Possessing verified, preset costs gives organizations the ability to budget accurately and eliminates price negotiations with contractors, creating a more trusting work environment.

The remaining projects, over 5,700 in total, were completed using shared contracts available via cooperative purchasing networks or interlocal agreements. These contracts use a regional CTC developed by the same Gordian experts behind the organization-specific ones. Accessing the shared JOC contract gets projects started even faster than their standalone counterparts because the terms of the contract are already set.

Get more details about accessing a Gordian JOC program and much, much more in this comprehensive video series.

Local Government Leads the Way

Gordian JOC solutions were used by a wide spectrum of organizations seeking to manage and optimize complex facilities portfolios. Local government used it more than any other sector, with 10,884 Job Order Contracting projects, up from 8,800 projects in 2022. K-12 schools accounted for 9,120 projects, the second most of any industry. School districts were followed by the U.S. federal government with 5,707 projects, state governments at 3,905 and higher education at 2,777. Rounding out the list is the healthcare industry, which completed 644 Gordian JOC projects in 2023.

Gordian Job Order Contracting: 2023 Use

Industry Total Projects Total Volume Avg. Project Value
Local Government 10,884 $1,662,814,852 $153,526
K-12 Schools 9,120 $691,872,746 $77,425
U.S. Federal Government 5,707 $490,326,023 $86,037
State Government 3,905 $488,997,466 $124,174
Higher Education 2,777 $320,970,496 $115,958
Healthcare 644 $119,797,796 $188,956

$3.8 Billion in Construction Volume

From a dollars and cents perspective, Gordian JOC has been on a long-term upward trajectory. In 2021, it accounted for $2.6 billion in construction volume. In 2022, that number rose to $3.2 billion. In 2023, our Job Order Contracting solutions were responsible for $3.8 billion of construction work across the U.S. and Canada. Approximately 44% of that volume, over $1.66 billion, came from local government, almost $1 billion more than the next highest sector.

While construction spend matched the number of projects at the industry level, the picture shifts when you consider average project value. Using this metric, healthcare led the way with an average project value of $188,956. Next was local government at an average of $153,526 and state government at $124,174. These industries were followed by higher ed at $115,958, the U.S. federal government at $86,037 and K-12 schools at $77,425.

While Job Order Contracting has earned its reputation as the ideal vehicle for routine, operational work, it is growing in popularity for larger projects. 179 Gordian clients completed projects of $1 million or more, and our JOC solutions were used for 83 mega-projects, defined as valued at $3 million or more. These numbers speak to two things: Growing comfort with the JOC process and greater trust in Gordian as a JOC provider.

2024 Promises Even Brighter Days

As excellent as 2023 was for Gordian’s Job Order Contracting customers, we expect and will work toward even greater success in 2024. We look forward to helping our clients engage local contractors, accelerate the projects that matter most and spend capital wisely and responsibly in service of building better communities.

About Gordian

Gordian is the leading provider of Building Intelligence™ Solutions, delivering unrivaled insights, robust technology and expert services to fuel customers’ success through all phases of the building lifecycle. Gordian created Job Order Contracting (JOC) and the industry-standard RSMeans Data. We empower organizations to optimize capital investments, improve project performance and minimize long-term operating expenses.

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