Gordian Job Order Contracting (JOC) 2022 Year in Review
A new year is a time for reflection, for considering the accomplishments of the previous year and charting one’s growth. In that spirit, we’re providing data and insights into how organizations across North America used Gordian’s Job Order Contracting (JOC) to deliver for their communities in 2022.
Nearly 30,000 Gordian Job Order Contracting Projects Completed
Gordian set a high-water mark in 2022 with a grand total of 29,973 JOC projects completed. The overwhelming majority of these projects – more than 25,000 – were the product of standalone Gordian JOC programs. These contracts are popular because of the level of service Gordian provides.
Under a standalone or custom Gordian Job Order Contracting program, our seasoned engineers develop and publish a Construction Task Catalog® (CTC) with local, accurate costs for work that organizations expect to complete over the life of the contract. These costs help organizations budget accurately and eliminate price negotiations between owners and contractors, resulting in better relationships between the two parties. Aside from developing the CTC, Gordian performs intentional and extensive outreach to train local contractors in JOC best practices, and reviews Price Proposals so owners pay, and contractors receive, a fair market price for construction work.
The remaining 4,833 Gordian Job Order Contracting projects completed in 2022 used shared contracts available via cooperative purchasing networks or interlocal agreements. These contracts use an existing regional CTC developed by Gordian cost experts and come with an established pool of awarded contractors so work can begin immediately.
Local Government and Public School Leaders Use Gordian JOC Most Frequently
2022 proved that Gordian is the Job Order Contracting partner of choice for organizations with complex facilities portfolios to manage. Our solutions empowered a wide range of industries to make better decisions, run better projects and deliver better outcomes for their communities. Two sectors in particular embraced Gordian’s Job Order Contracting last year. Local government and K-12 schools ended the year neck-and-neck for Gordian JOC projects completed, with government closing 8,798 projects and schools closing 8,797. Talk about a photo finish.
The U.S. federal government completed the third-most Gordian JOC projects in 2022 with 4,572. They were followed by state governments at 3,505, institutions of higher education at 2,778, and hospitals and healthcare facilities at 1,523 completed projects.
Gordian JOC Accounted for Over $3.2 Billion in Construction Volume
The book isn’t fully written on the U.S. construction industry’s 2022 performance. Numbers are still being crunched and data is still being analyzed. However, the early returns paint a rosy picture. Analysis of 40+ construction segments points to 6.5% growth in 2022. Gordian’s Job Order Contracting represents a sizable portion of this growth, as it accounted for $3.2 billion in construction, up from $2.6 billion in 2021.
Looking a level deeper, $1.3 billion of those Gordian JOC projects – approximately 40% – came from local government. For added context, that’s over two times the amount spent by the second-highest spending sector, K-12 schools. It is noteworthy that these sectors found themselves in unprecedented territory, with more federal and state funding available than any other time in recent memory. With a glut of aid at their disposal and limited time to allocate and spend it, public sector decision makers may have turned to Gordian’s Job Order Contracting to deliver projects in a narrow window of time, as research has shown that JOC projects start an average of 25% faster than those delivered via traditional methods like Design-Build, Design-Bid-Build and Construction Manager at Risk. Further, Gordian’s secure, cloud-based software gives organizations full visibility into every spending decision, so they stay in compliance with funding restrictions.
Gordian Job Order Contracting Was Used for Hundreds of Million-Dollar Projects
Job Order Contracting is typically associated with simpler, routine projects like maintenance and renovation work. Our analysis shows that that reputation holds water, as 19,329 of Gordian’s 29,973 JOC projects – almost 65% of all 2022 projects – were valued at $50,000 or less. That is an overwhelming majority. However; there is an interesting development at the opposite end of the spending spectrum.
430 of last year’s Gordian Job Order Contracting projects were valued at over $1 million or more. That’s not a huge chunk of the total number of projects, but it signals a shift in the way JOC is being used across North America. Organizations are increasingly using Gordian’s Job Order Contracting solutions for larger, more complex projects, allowing them to complete high-visibility, high-value construction work. This trend toward bigger projects points to JOC’s increased proliferation in the marketplace and organizational leaders’ trust in Gordian’s insights, technology and expertise. With more than thirty years of experience implementing and supporting successful JOC programs, no other JOC provider is equipped to see so many million-dollar projects through completion.
Looking Ahead to Continued Success
It takes powerful tools and thorough strategies to fulfill community promises. With nearly 30,000 projects finished, our Job Order Contracting programs played a significant role in helping our customers keep those promises in 2022. We are thrilled to be part of their continued success in 2023.
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.
