Job Order Contracting - There are savings in every step of the process.
Job Order Contracting can
save between 8% to 15% when compared to traditional procurement methods.
Architectural or Engineering Fees - For most maintenance and
minor new construction projects, A/E design services are provided for the sole purpose of creating biddable documents.
Under the Job Order Contracting process, Job Orders are jointly scoped with the
facility owner and the contractor. The Detailed Scope of Work is generally much
less than a complete set of A/E
drawings.
Procurement Costs - Since each Job Order is issued under
the master contract it does not need to go through the normal procurement
process. This saves administration and advertising costs and allows procurement personnel to focus on
more complex projects.
Change Orders - The contractor is involved in
developing the Detailed Scope of Work for each project and builds the Proposal
to match the Detailed Scope of Work. The contractor takes responsibility for
errors and omissions. Therefore, change orders are practically eliminated. And,
if there are change orders, they are priced from the Construction Task Catalog®
and not negotiated.
Construction - Job Order Contracting
combines many small projects into one master contract. The contractor will reduce
its
profit margin on individual projects, and provide a volume discount.
The contractor can also spread its overhead over more projects further reducing costs.
Job Order Contracting will also
save between 75% to 85% of the time it takes to procure construction services when
compared to traditional procurement methods.
This is one
of the strongest reasons for adopting a Job Order Contracting program. You can
get your projects under construction much quicker and with a better end result.
Once you bid the master contract you have a contractor on
call to do just about any small to medium sized project. You can begin construction
within a few weeks of project identification instead of several months.