Maximizing Fixed Budgets With Job Order Contracting (JOC)

Job Order Contracting (JOC) is an efficient and flexible construction procurement method that enables organizations to complete many projects with a single, competitively awarded contract. Responsible for tens of thousands of projects and $4 billion in construction volume every year, Gordian’s Job Order Contracting solutions are the go-to delivery method for various types of work. In this post, we’ll look at JOC’s success in making the most of fixed or limited budgets.

It’s common for project owners to account for potential change orders and unforeseen circumstances in their budgets. But that’s not always possible, usually for one of two reasons. The first is simple: The money just isn’t there. Organizations don’t always have the financial margin for contingencies; sometimes, there isn’t a rainy-day fund to borrow from. The second reason construction must stay within given budget parameters is that the work is being funded by a grant or a gift that owners can’t exceed.

JOC’s Success With Fixed Budget Projects

City of Victorville Builds State-of-the-Art Facility With Grant Funding

Using a $28 million Homekey grant via the California Department of Housing and Community Development, the City of Victorville built a campus delivering wraparound services for the local unhoused population. Given that the funds had to be expended within eight months of being awarded, city officials needed to act urgently to put the grant into action. That’s why they opted to deliver the project with Gordian’s Cooperative JOC (also known as ezIQC®), a shared Job Order Contract the city accessed via Sourcewell, a purchasing cooperative. These contracts are awarded and construction-ready, allowing cooperative members like the City of Victorville to begin work on an accelerated schedule. This speed is a strength of all Gordian JOC solutions.

The city expended funds within the grant’s allotted timeframe, and today, the Victorville Wellness Center serves as a hub of services for a community that desperately needs it. In addition to 170 housing units for singles, couples and families, residents have access to a cafeteria, medical facilities, classrooms for job and skills training, an on-campus Goodwill store, a dog park and a bus stop for school-aged children. The project was such a complete success that it won the 2023 Harry H. Mellon Award of Excellence in Job Order Contracting.

Jay Kwon, Senior Project Manager of the awarded contractor, Angeles Construction, had this to say. “This project is only possible with the timely and strategic collaboration of the city, the contractor, the design team and the delivery system (Gordian’s Cooperative JOC) to seek the grant, concept the design, execute the urgent infrastructure, even with long lead items, and finish strong with modular delivery and build-out.”

City of Miami Honors Cuban Population With New Monument

The City of Miami Office of Capital Improvements was eager to update a park by installing a monument honoring the Cuban exiles who participated in the invasion at the Bay of Pigs. The $1.35 million project was funded by the Miami Forever Bond, money earmarked to build a more resilient future for the city and address its most pressing needs. In addition to installing the monument, the awarded contractor made lighting and parking upgrades, improved the walking path and put up new exercise equipment.

Sculptor Nilda Comas created the monument, which depicts a soldier emerging from behind a Cuban flag. The soldier represents the first Cuban killed accidentally in Guatemala during training for the invasion and wears the number 2506, which became the number of the brigade that led the invasion and the name of the veterans’ association that exists today. To celebrate the completion of this project, city officials held a ribbon-cutting ceremony and invited Cuban Americans with ties to the Bay of Pigs, including veterans of the invasion and their families.

This project was so well-received and made such a positive impact on the community, it earned a 2022 Award of Merit in Job Order Contracting.

Learn more about Gordian’s Job Order Contracting Awards, honoring the agencies, institutions and contractors who work together to deliver essential community improvement projects.

Arizona DOA Saves $600,000 with Job Order Contracting

The historic Carnegie Center (formerly the Carnegie Library) has been an important part of the Phoenix landscape since 1908. The building is such a downtown mainstay that when it came time to replace the roof, one of the Arizona Department of Administration’s (ADOA) primary goals was to maintain its architectural character. ADOA officials learned that this commitment came at a hefty price when bids came in over $1.3 million, far exceeding the project budget.

To rein in costs without sacrificing quality, ADOA turned to Gordian’s Job Order Contracting and worked with area contractor SD Crane Builders, Inc. to get the project cost down to $700,000, nearly half the cost of bids received via traditional project delivery. Not only was the ADOA able to preserve the Carnegie Center’s design integrity, it did so while saving $600,000 in taxpayer dollars. This incredible cost savings resulted in the project winning a 2016 Job Order Contracting Award of Merit.

Whether organizations have to stay within the limits of grant funding or internal budgets, Job Order Contracting is an efficient, effective method of completing construction with a fixed budget. Find out if JOC’s right for your next project with our JOC calculator.