Study Finds JOC Programs Save Time, Admin Costs

In 2015, the Performance Based Studies Research Group from Arizona State University’s (ASU) Del Webb School of Construction completed a study of the Job Order Contracting (JOC) construction project delivery method. In an examination stretching over a year, researchers compared JOC program performance with that of traditional project delivery methods, design-bid-build (DBB) and design-build (DB).

To complete the study, the ASU team surveyed 47 construction project owners and 13 JOC contractors, who, at the time represented $5 billion in construction work.

The study of JOC programs included input from owners and contractors.

The study revealed four key facts about JOC, directly from the owners and contractors engaged in JOC programs: 99% of owner respondents recommend JOC, 96% of JOC projects were completed with satisfactory results, 91% of JOC projects were delivered on budget and 87% of JOC projects were delivered on time.

Owner satisfaction with JOC programs is high.

Those satisfaction numbers are astounding, but they don’t paint the whole picture. Owners reported that JOC outperformed DBB in terms of budgetary and schedule performance by 8% and DB by 5%, resulting in a 60% greater satisfaction with JOC. Further, owners reported a 65% decrease in overall service delivery time compared with those traditional methods. That time savings came from one of two places. 81% of those surveyed identified that JOC saves time in construction procurement, and 68% disclosed they spent less time managing JOC projects compared with traditional procurement methods.

Owners estimate a 65% delivery service savings using JOC programs.

In addition to saving time, researchers uncovered the JOC also saves money. Contractors reported a 21% overall cost savings as a result of time saved having to bid on and acquire individual jobs and a reduction in change orders. Owners said they saved 24% in administrative costs as a result of decreased procurement time, less necessary project support and a reduction in documentation demands. Owners also reported 30% higher transparency for JOC, which is important for state and local governments, public schools and other entities that need to show they are getting the best value for every dollar they spend.

JOC programs provide cost savings for owners and contractors.

Further, researchers defined a set of best practices common to the most efficient and effective JOC programs. Those practices include:

  • Selecting the highest performing contractors.
  • Eliminating contractor competition and task-order bidding.
  • Encouraging early contractor involvement in developing the Detailed Scope of Work.
  • Ensuring the use of a detailed Unit Price Book in bidding documents.
  • Involving contractors in the design work.

The results of Arizona State University’s study of JOC are clear: Owners report significant time savings compared with other construction project delivery methods, and owners and contractors alike report that JOC saves costs.

About Gordian

Gordian is the leader in facility and construction cost data, software and services for all phases of the building lifecycle. A pioneer of Job Order Contracting, Gordian’s solutions also include proprietary RSMeans data construction costs and Facility Intelligence Solutions. From planning to design, to procurement, construction and operations, Gordian’s solutions help clients maximize efficiency, optimize cost savings and increase building quality.