Properly budgeted and well managed facilities* are critical to the delivery of public sector services, including Governing, Defense, Education, Healthcare, Life/Safety, and Transportation.
Despite this widely known fact, effective and transparent LEAN business practices are rarely leveraged to optimize the use billions of dollars needed annually for renovation, repair, and maintenance construction projects.
JOB ORDER CONTRACTING – JOC, is an efficient construction project delivery method for renovation, repair, and maintenance of built structures. It enables real property owners to shorten project timelines, improve owner-contractor relationships, and execute more construction project on-time and on-budget…. to the satisfaction of all parties involved.
At a time when everyone is being called upon to “do more with less”, JOC is should be a component of facility renovation, operations, and maintenance strategies.
JOC is a LEAN best management practice and involves the consistent deployment processes and workflows, early and ongoing communication, standardized information, performance metrics, supporting technology, and continuous improvement.
JOC is a form of indefinite delivery indefinite quantity – IDIQ construction delivery contract/method that uses a Unit Price Book – UPB, to encourage the communication and understanding of construction projects for both owners and awarded contractors. JOC contracts typically range in size from $2-$3M to $300+M and span 3-5 years.
The predominant method of JOC deployment is a contract developed, offered, awarded, and managed directly by a skilled real property owner. Alternatively, COOPs, and outsourcing have also become available for JOC program implementation. As in any strategic decision, however, the JOC deployment method selected should consider the current and future requirements and goals of the owner as well as those of their awarded construction service provider(s).
While JOC is currently in use by the Federal Government, State, County, and Local Governments, Education, Transportation, and Healthcare, it represents a very small fraction of total amount of renovation, repair, and maintenance work executed.
The primary obstacles to the more widespread use of JOC and associated productivity gains are classic: education, awareness, and resistance to change.
JOC requires “above average” capabilities on the part owners and contractors alike. General knowledge of construction practices, line item construction cost estimating, excellent written and verbal communication capabilities, the ability to work collaboratively with disparate professions, and strong computer-based analysis and work skills are representative of skills needed for successful JOC program implementation.
Supporting technology that embeds core JOC processes drives collaboration, tracks milestones, and enables easy information access and reuse is very important. The traditional reliance upon spreadsheets or silos of disparate data format are not well suited for JOC.
While JOC is being successfully leveraged by a small group of innovative owners and contractors, acceptance of this and other LEAN construction methods must be accelerated in order to improve productivity across the entire construction and facility management sector.
*including vertical and horizontal built infrastructure