Myth or fact: Job Order Contracting Edition

As a relatively new-to-Canada procurement method, Job Order Contracting (JOC) can be a confusing process to the uninitiated. JOC is a project delivery method allowing owners to award multiple projects through one competitively awarded contract, significantly accelerating project delivery and resulting in lower admin costs and high-quality work.

JOC is distinguished from traditional standing offer programs due to the pricing method: A combination of a verified and comprehensive catalogue of local costs and applicable adjustment factors determined by bidders for all projects in the program. JOC is offered through Gordian and available to Kinetic GPO members.

JOC is well suited to tasks like:

• Lifecycle renewal and upgrades
• Routine, straightforward and low-design projects
• Alterations and tenant improvements
• Construction projects with a fixed budget
• Emergency work
• Time-sensitive projects
• Sustainability and accessibility upgrades
• Select new builds
• Punch list and advance work for existing projects
• Myths and facts

Myths and Facts

Given JOC’s newness in Canada, myths persist about its use. Next, we bust five of the most common JOC myths, so you better understand this unique project delivery method.

Myth 1 – If I use JOC, I cannot work with my preferred local contractors.

Fact – You can invite any contractors in your area to participate in the solicitation, and you absolutely should invite them based on their reputation for quality work. If you partner with Gordian to get your JOC program up and running, we’ll take care of all the legwork for you. We will reach out to contractors and subcontractors in your area, teach them how to bid on your Gordian JOC program and train them to follow tried and true best practices, so projects run smoothly. In the end, you have local, competent JOC contractors eager to take on your construction projects.

Myth 2 – JOC is an unproven construction project delivery method.

Fact – JOC has been around for a long time. Gordian founder Harry Mellon created JOC in the early 1980s to get routine projects started quickly when he served as a chief engineer at NATO. Like today’s facilities and procurement professionals, Melon was responsible for maintaining many different spaces and found it took him an exorbitant amount of time to get things done using traditional procurement methods like design-bid.

Mellon brought JOC to North America and founded Gordian in 1990. Today, there are more than 300 active Gordian JOC programs that completed a total of $3.8 billion in construction volume in the United States last year.

Complementing Existing Practices

Myth 3 – JOC is a replacement for your current project delivery method.

Fact – It’s best to think of JOC as a complement to your current practices, another project delivery tool to use when you need it. There are projects where JOC is the best fit, and there are projects where it is not. Because JOC is designed to complete a succession of pre-defined construction tasks, it’s perfect for a variety of construction projects including repairs, renovations and maintenance work, especially when short timelines or fixed budgets are involved. Routine, simple projects: That’s the JOC sweet spot. Using JOC can be an effective method to deliver repetitive and straightforward projects, enabling organizations to use limited capacity for more strategic and complex projects.

Myth 4 – Using JOC is more expensive and more time-consuming than traditional project delivery methods.

Fact – Recent research by NIGP and Gordian found that the transaction costs of implementing a JOC are comparable to traditional project delivery methods like design-build, design-bid-build and construction manager at risk. Learn more about the research completed from public procurement professionals by visiting the Gordian website (https://www.gordian.com/resources/job-order-contracting-alternative-project-delivery-method/).

Myth 5 – JOC is only for bigger procurement teams.

Fact – NIGP’s research also found that more than 58 per cent of procurement professionals surveyed said four or fewer people are involved in their JOC process. On the other hand, nearly half of those surveyed said traditional project delivery requires more than five people. These statistics back up what municipalities, schools and other public sector entities already know: JOC is a viable construction procurement option for small, overextended teams.

No matter the size of the organization or the familiarity with JOC, Gordian is equipped and ready to help complete routine projects quickly. Kinetic GPO happily partners with Gordian to ensure customers successfully streamline your procurement processes and accelerate construction. Learn more about Gordian and Kinetic GPO today.  MW

Jonathan Burbee is Director of Business Development – Canada, Gordian.