Job Order Contracting

Overview

Job Order Contracting is a procedure that has been adopted by many organizations to streamline the contract approval process of facilities construction, renovation, and maintenance. It involves the award of fixed price, indefinite quantity contract to a specific contractor. The contract is bid by various firms based on a Unit Price Book, such as those provided by RS Means, for several upcoming projects. The Unit Price Book contains labor, material, and equipment costs for common tasks associated with building construction. Each contractor’s bid includes cost multipliers or coefficients that reflect their overhead, insurance, profit, and contingency costs. This multiplier is then applied to all of the line items in the Unit Price Book. For example, a contractor may bid a multiplier of 1.15. Then all of the line items from the Unit Price Book involved in completing a specific project would be multiplied by 1.15. This allows the JOC manager to evaluate each contractor on performance and qualifications, knowing that a fixed price has already been established.

Once a contractor has been selected, work will be given to the contractor in a work order or project format. The contractor will provide a proposal, or cost estimate, for each project using the Unit Price Book. When the JOC manager has approved a proposal and the notice to proceed is given, the contractor will commence work.

Project

Key to the operation of many organizations is maintenance and construction handled through Job Order Contracting. TM2 provides the ability to efficiently manage these contracts with its JOC module, which includes the following features:

  • General project information such as the name of the project manager, facility information, and status codes.
  • Customizable checklists to ensure that all required steps are completed in the award and closeout processes.
  • Recording of estimated and actual dates for important milestones in the project lifecycle.
  • Record invoices from contractors along with retainage, penalties, and payments.
  • Track the purchase orders allocated for funding the project, along with balances as invoices are paid.
  • Manage subcontractors and track M/FBE participation.
  • Select for many predefined reports. Create custom reports with Crystal Reports, which can then easily be integrated into TM2.
  • Attach any file to the project, such as scanned documents, CAD drawings, and spreadsheets.
  • Import cost estimate proposals from CostWorks, RS Means cost estimating software. Compare contractor proposals to in-house proposals and track revisions.

Contractor’s Web Page

To complement the JOC management features of TM2, a Web module is available for the contractors which eliminates much of the paperwork and time involved in the project management cycle. When a contractor logs into the web page, only the projects assigned to them are displayed. From this site the contractor can upload invoices and proposals. When a new invoice or proposal is added a notification email is sent to the JOC project manager, along with a link to print the invoice or proposal. Additionally, the contractors can use this web page to see when their invoices have been paid.

The web module provides reports for the contractors listing their active projects, paid invoices, and proposals. Just as with the JOC Management module, custom reports can be created in Crystal Reports which can then be made available to the contractors through the web page.