Job Order Contracting (JOC) is a way for organizations to get numerous commonly encountered construction projects, such as facility repair, renovation, or sustainability/green jobs, done quickly and easily through multi-year contracts. JOC significantly reduces engineering, design, and contract procurement time by awarding long-term contracts. JOC is a program not a project, best implemented via a JOC-specific software program. JOC is an alternative to traditional Design-Bid-Build (DBB) and similar construction methods to procure construction management services with an emphasis upon partnering and teamwork. JOC provides the process/methodology to execute indefinite-delivery, indefinite-quantity, fixed price, and multiple simultaneous orders for renovation, rehabilitation, repair, and sustainability/green work for larger facility portfolios. JOC is performance-based. JOC contractors are selected based on best value, qualifications, and performance.
Cloud computing is altering the basic framework of AECOO (Architecture, Engineering, Construction, Operations, Owner) sector as well as the software/technology sector. Fundamental business practices are changing with a focus upon collaboration, transparency, and significant productivity gains. Coincidentally, how associated software/technology is priced, licensed, sold, used, and consumed is being altered.
Cloud computing, aka “the cloud,” is a general term describing anything that involves delivering scalable, hosted services (infrastructure, development platforms, or end-user applications) over the Internet.
Cloud computing is a collaborative, multi-user, distributed platform enabling users from multiple locations and/or organizations to share and work on data, such as construction cost estimates, using a simple Internet browser (Microsoft Internet Explorer, Google Chrome, Mozilla Firefox).
Cloud computing provides users access to virtually unlimited computing resources in terms of processing power, memory, and storage. Ceasel’s cloud computing architecture incorporates several important properties. For example, it can provide confidentiality to sensitive data. Multiple service providers can co-exist. Also, Ceasel can make services available across domains.
Cloud computing is a distributed system where multiple domains co-exist together. Based upon assigned privilege levels, users from different domains can appropriately share confidential data with others. Thus users within one domain can share information (intra-domain) and across domains (inter-domain). An example of intra-domain would be sharing information within a single or multiple office construction firm. An example of inter-domain collaboration would be Contractors, Sub-contractors, and/or Owners all sharing a single construction cost estimate or portion of a construction cost estimate.
Yes, JOC is also known as:
e4Clicks Project Estimator is the AEC industry’s premier construction cost estimating and project management system designed specifically for the JOC, SABER, IDIQ, SATOC, MATOC, MACC, POCA, BOA and similar efficient construction delivery methods. It is the most powerful estimating and collaboration solution developed to dramatically improve organizational effectiveness and ensure successful completion of projects through centralized communication, tracking, reporting, and information sharing.
More and more construction projects are turning towards electronic document and data management on projects as a cost savings, quality, and improved communications initiative. Typical paper-based system costs encountered project-wide include: document reproduction, including large-scale drawings, postage and courier, paper records retention, and inefficiencies due to errors, omissions, improper filing, and accessibility.
Studies indicate that 0.18%1 of construction volume is the direct cost of paper based construction delivery methods: a Construction Management firm or General Contractor will spend about $180,000 on reproduction, postage, courier, and records retention. This does not consider the costs borne, and accounted for separately, by the A/E, owner, and subs that are eventually paid for by the owner, as they are embedded in everyone’s fees or costs of direct work/subcontracts. Even more significant are the assumed costs as a result of miscommunication, change-orders, and rework as a result of outdated or incorrect paper documents.
e4Clicks Project Estimator embeds the detailed RSMeans™ cost data or other cost data that you have selected for your requirements, including the City Cost Index (CCI). The RSMeans™ cost data is available in annual updates and the CCI is updated quarterly. RSMeans™ is the industry leader for reference cost information. Their architects, engineers, and cost researchers compile construction costs by tracking and compiling labor, material, and equipment rental costs spanning the majority of construction projects across North America.
(Note: Contracting specifications can vary and should be reviewed for each and every particular instance. The method of pricing under the terms of a JOC contract is a Unit Price Book (UPB). 4Clicks Project Estimator embeds the UPB providing a computerized proposal development system for the preparation of proposals and automated technical evaluation that are submitted to the owner.)
A1. A coefficient is a multiplier that is used to raise or lower the unit prices found in the price guide or unit price cost book. Some contracts allow for a separate coefficient for each year, others allow an escalation index; some maintain the coefficient but use an updated price guide.
A2. Coefficients are typically applied to the sum of all bare costs (material, labor and equipment) of the applicable line items from the cost guide (typically RS Means). A localization factor for the cost is also generally applied such as a city cost index.
For example: Units x (bare material cost + bare labor cost + bare equipment cost] x Localization Factor [CCI factor] x [contractor’s applicable coefficient] = Total price to the Government
You may wish to locate a consultant to prove initial JOC set up service. You could also contact a military base or business owner that has a successful JOC in place. We can help you establish specifications for a consultant search, or we can refer you to clients we serve within your industry sector. (For example, Air Force to Air Force, Contractor to Contractor, etc.)
As with any construction delivery method it’s important to conduct an evaluation of current capabilities and potential requirements, facilitate “Stakeholder” buy-in, assess in-house design capabilities, and determine the types of projects you want JOC to support. Additional considerations include price guide selection and development, software requirements, procurement processes and procedures, and contract document development.
With JOC you’ll experience significant savings and benefits in time, cost, collaboration, transparency, and longer term relationships. For example, JOC methods reduce project schedules by as much as 60%. JOC requires that bidders have a more complete understanding of the contract. As a result, both bidders and owners use unit price cost guides, reference cost databases, and localized cost factors, to jointly scope projects. When implemented, JOC will be an invaluable tool to help you manage all projects.
Since 1985, the military sector and DOD have used JOC contracts on billions of dollars of construction projects. Most JOC delivery orders are for repair, remodeling, renovation, and sustainability/green work with typical individual average project values ranging from $25K to $350K. JOC programs typically have 5 year terms and can total $300 million or greater.
JOC is continuing to grow within the DOD sector, and experiencing rapid adoption and growth across Municipalities & Cities, Colleges and Universities, K-12 Public & Private Schools, State Agencies, Correctional Facilities, Transportation Agencies, Airports, Hospitals, and Research Facilities.
Construction Cost Estimating is the process of determining the future cost of a construction project for a new building, or the repair, maintenance, renovation, or renewal of an existing building (or other physical infrastructure asset like a dam, roadway, or bridge) computed on the basis of available information. The use of a reference construction cost databases combined with local knowledge is typically considered “best practice.”
Construction Cost Engineering is the process of creating cost data (for example, reference costs, cost databases and/or costing algorithms) for the purpose of construction, repair, maintenance, or capital planning projects. Cost engineering is an area of engineering practice concerned with the application of scientific principles and techniques to problems of cost estimating, cost control, business planning and management science, profitability analysis, project management, and planning and scheduling.
e4Clicks Project Estimator empowers estimators to be estimators, not cost engineers.
A repeatable estimating process using available standards and technologies and the use of a reference cost database are important considerations. Lack of standardization is a root cause of waste, miscommunication, and errors in construction cost estimating.
Also important is using a standardized reference cost database that strictly adheres to and fully supports cost data standards such as Uniformat II and MasterFormat04. For example, the CSI MasterFormat, Uniformat II, and RSMeans™ cost data combine to provide an extremely valuable checklist for cost estimators. Custom or modified cost line items can also be better maintained and reused by linking them to RSMeans™ costs and/or City Cost Index localization factors. This helps support standardization for estimate sharing and to minimize “missing” items.
Scope of Work “Checklist”
Electronics Takeoff “Procedures & Checklist”
Clear Identification of Task
The estimator must be provided with the project description, ground rules, assumptions, and technical and performance characteristics. Any constraints and conditions on an estimate must be clearly identified to ensure the preparation of a well-documented estimate.
Broad Participation in Preparing Estimates
All players and constituencies should be involved in deciding needs and requirements and in defining parameters and other characteristics.
Availability of Valid Data
Multiple sources of suitable, relevant, and available data should be used. Data should be independently verified for accuracy, completeness, and reliability. Relevant and historical data should be used from similar systems to project costs of new systems. The historical data should be directly related to the requirements.
Standardized Structure for the Estimate
A standard work breakdown structure, as detailed as possible, should be used, refining it as the cost estimate matures and the system becomes more defined. The standardized structure helps ensure that no portions of the estimate are omitted and makes it easier to make comparisons to a similar project.
Provision for Program Uncertainties
Uncertainties should be identified and allowance developed to cover the cost effect. Known costs should be included and unknown costs should be allowed for.
Recognition of Inflation
The estimator should ensure that economic changes, such as inflation, are properly and realistically reflected in the life cycle cost estimate.
Recognition of Excluded Costs
All costs associated with a system should be included; if any cost has been excluded, it should be disclosed and given a rationale.
Independent review of estimates
Conducting an independent review of an estimate is crucial to establishing confidence in the estimate. The independent reviewer should verify, modify, and correct an estimate to ensure realism, completeness, and consistency.
Revision of estimates for significant program changes
Estimates should be updated to reflect changes in a system’s design requirements. Large changes that affect costs can significantly influence program decisions. (Adapted from GAO Cost Assessment Guide, 2007)
Yes. Project Estimator has received approvals for from both the Army and the Air Force for several years now. Please see the following page.