As the end of the fiscal year approaches, it is common for project owners to look at the calendar and wonder how they are going to finish the repair, maintenance and renovation projects they have on the docket. Rather than putting off projects for another few months and risking the integrity of their facilities in the process, many facilities leaders are turning to Gordian’s Job Order Contracting (JOC) to complete their end-of-year projects.
Job Order Contracting is an indefinite delivery, indefinite quantity (IDIQ) procurement process that enables owners to complete many projects through one contract. Unlike traditional bidding where each project is identified, designed and put out to bid, Job Order Contracting establishes competitively-bid prices up front and eliminates the need to bid each project.
Gordian has been implementing and supporting Job Order Contracting (JOC) programs for over 30 years. Today, thousands of Gordian Job Order Contracts are active and help organizations of all sizes complete more than $2.6 billion in construction volume annually.
Job Order Contracting: Streamlined Process, Preset Prices
Traditional procurement cycles typically take months to complete and require a significant amount of administrative and technical resources. Job Order Contracting streamlines that procurement process significantly. A study by Arizona State University found that JOC project owners report a 65% reduction in overall service delivery compared with traditional project delivery methods.¹
Budgetary control is another hallmark of Gordian’s Job Order Contracting solutions. Arizona State University found that 91% of Job Order Contracting projects were delivered on budget. Additionally, owners estimated a 24% savings in administrative costs, while contractors estimated a 21% overall cost savings. The cost of procuring construction projects with JOC is lower than traditional procurement because awarded contractors build project price proposals using preset pricing established in a Unit Price Book (UBP), and the owner satisfies local bidding requirements with a single solicitation.
While a single contract is in place for multiple projects, the contractor must satisfy the owner’s standards to ensure future work. The owner is not obligated to give the contractor more projects but may if they are satisfied with the working relationship. The potential of a steady stream of work motivates the contractor to perform quality construction on time.
Accessing A Gordian Job Order Contracting Program
Gordian’s JOC solutions are flexible and can be configured to provide a variety of service levels. Owners can implement their own programs or access competitively-awarded Gordian Job Order Contracts through cooperative purchasing networks and shared contracts.
There are no upfront costs to implementing a Gordian JOC program. When, and only when, an owner executes a project under a Gordian JOC program, Gordian will receive a percentage of the total cost of that project. Gordian is not paid until a Job Order is issued.
Gordian’s Job Order Contracting is perfect for completing end-of-year projects. Learn more here.
¹ Job Order Contracting Performance, 2015 Industry Study, Performance Based Studies Research Group (PBSRG) Del E. Webb School of Construction at Arizona State University
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