Fast-Tracking Project Delivery
Job Order Contracting (JOC) is a construction procurement method that expedites project delivery by allowing a multitude of work to be done using one competitively awarded contract. This innovative, single-solicitation approach saves significant time in the procurement process, up to 25% according to a report by NIGP and Gordian. This efficiency is the primary value of Job Order Contracting, and a major reason Gordian JOC was trusted with $4 billion of construction work in 2024 alone.
While many organizations opt to stand up their own Gordian JOC contract, many access a shared contract via a purchasing cooperative, group purchasing organization or interlocal agreement. Known as Cooperative JOC (ezIQC® in some places), these contracts offer many advantages to those who use them.
Let’s explore the value of Job Order Contracting via shared contracts for organizations, contractors and communities.
How Does Job Order Contracting Work?
Bidding
With traditional construction contracts like Design-Build or Design-Bid-Build, specific individual projects are put out to bid. The process of advertising, collecting, evaluating and negotiating bids takes months, especially in the public sector, where procurement laws often add layers to the process. This laborious routine holds true for every type of project, regardless of cost or complexity. As far as construction is concerned, a long process is the norm.
JOC turns the status quo on end. Instead of bidding on specific individual projects, contractors submit bids on a Unit Price Book used to price an unknown number of projects. Bidding this way, one time with preset prices established upfront, accelerates project delivery while satisfying applicable laws, standards and regulations. This unique approach is why the value of Job Order Contracting is most prominent in routine, operational work, the sorts of projects that require little to no design and for which the typical delivery process proves burdensome.
Check out this infographic for more details on when to use Job Order Contracting.
Preset costs ensure project owners and contractors are each getting a fair shake. Further, all parties know from the outset that a JOC program is performance-based, meaning contractors must meet a project owner’s standards if they want to be awarded future projects. This powerful combination – preset prices and performance standards – dilutes the incentive to profit as much as possible. In the profit motive’s place emerges the incentive to do high quality work.
This atmosphere of unity and collaboration begins with bidding and continues through the life of the contract.
Project Delivery
Every Job Order Contracting project begins with a meeting on the job site called a Joint Scope Meeting. At this meeting, contractors, subcontractors, project owners and a Gordian rep (if appropriate) clarifies exactly what work is supposed to be done and how. Again, collaboration comes into play as contractors point out potential difficulties and offer creative solutions that maximize budget without sacrificing project quality. Once a Detailed Scope of Work is established, the contractor drafts a Price Proposal using the Unit Price Book. If a Gordian rep is involved, they will review it for accuracy and completeness, a process step that generates an average savings of 6% in construction costs. Once a Price Proposal is ready, the contractor submits it to the project owner, the project owner reviews and approves it, and work can begin.
With JOC, this activity can happen in weeks. With traditional project delivery, it takes months.
Hence, the primary value of Job Order Contracting is efficiency.
The Value of Job Order Contracting Via Shared Contracts
The baseline advantages of Job Order Contracting, speed and efficiency, are amplified by Cooperative JOC. Think of it this way: If a standalone Job Order Contract is fast as Usain Bolt, a shared JOC contract is as fast as a cheetah.
These contracts are construction-ready, meaning the entity that holds the master contract has already worked with Gordian to iron out all the details and award contractors. With all that administrative work knocked out, project owners can access Cooperative JOC and have contractors on site in a matter of days.
But speed isn’t the only advantage of delivering projects with Cooperative JOC. Just as with commodities, organizations may access construction services via co-ops at group discounts. The project process is fully transparent, with all parties sharing the same digital Unit Price Book and every revision recorded in our user-friendly project management software.
Finally, using Cooperative JOC doubles a project owner’s support system. With experts from Gordian and the co-op/GPO to help ensure things run smoothly, success is far more likely.
Watch this on demand webinar to hear Gordian procurement specialists take a deep dive into leveraging cooperatives for construction services.
Getting Started With Cooperative JOC
Even if you’re confident in the value of Job Order Contracting via cooperatives, your colleagues might need some convincing. That’s to be expected. It’s natural for people to be apprehensive about processes outside their normal workflow. Here are some tips for getting them on board.
- Find local success stories. If Cooperative JOC is available in your area, chances are one of your professional connections is already using it. Invite local colleagues to come to your office and talk about their experience and the projects they’ve completed with Cooperative JOC.
- Pick the right project. The JOC sweet spot is routine, operational work, so don’t go too big on your first try. The ideal on-ramp might be a smaller project your organization has meant to address for a long time but has had to put on the back burner. Using Cooperative JOC to knock out a nuisance project is a great way to get your coworkers excited about it.
- Talk with your master contract holder. Your cooperative/GPO or the entity that holds the master contract is a wealth of knowledge regarding delivering construction with Cooperative JOC. More than that, they’re happy to help. Ask them questions about getting started. They can set you on the right path.
Have a project you’re eager to complete? Get started with Cooperative JOC today.
The value of Job Order Contracting via cooperatives and other shared contracts cannot be overstated. Project owners can tackle more projects in less time, develop partnerships with local contractors, ensure standards of quality and satisfy local laws and regulations. That’s why it’s ideal for completing a slew of routine, operational projects.
