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Coefficients and their role in Job Order Contracting (JOC) and SABER

Price coefficients are applied to unit line prices from a unit price book (UPB) to determine the actual cost of JOC or SABER project and/or task order. The contracted price coefficient is applied to all labor and materials line items necessary for each job to arrive at an estimated for the job. Coefficients are important to Contractors to both winning and profitably performing JOC/SABER construction projects. It is equally important that Owners independently evaluate the Contractor’s proposed price coefficients. Many factors affect a coefficient, including, but not limited to location, job complexity, market conditions, and the number of jobs allocated.

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