JOC Provides High Levels Of Satisfaction

 

By: Greg Ohrn, P.E., Assistant Professor Northern Arizona University

 

In 2005 and 2006 a CJE funded study was carried out looking at Job Order Contracting and the value it brings to facilities owners and support staff. While the data is still being reviewed and analyzed, I felt it was important to share some of the early findings and insights from the study. This was a first step in the efforts to quantify the key elements of the value of Job Order Contracting as compared to other and/or hybrid construction methods in the industry today.

 

In September 2006, an article was submitted to the ASCE Journal of Construction Engineering and Management entitled “Owner Perceptions of Job-Order-Contracting as a Project Delivery Method.” The following is a high-level summary of the findings contained in the submitted article.

 

Respondent Characteristics: 80% of the respondents indicated they primarily represent the interest of the owner in the contracting process. The typical respondents indicated an average of 17 years of experience with the traditional design-bid-build project delivery method. In addition these respondents indicated an average of 10 years of experience with DB, 8 years with JOC, and 5 years with Construction Manager At Risk (CMAR).

 

Research Findings Include:

  • Use Of Unit Price Book Within The JOC Program: 56% of the respondents indicated they use a Unit Price Book (UPB). This was the most likely case with military agencies, state agencies, and counties.

    Interesting trend to watch, that 42% of the respondents indicated they price their JOC work in some other manner (i.e. cost-plus, negotiated work orders…etc). This was the most likely case with private companies, cities, and institutions of higher education.
  • JOC Needed For Timely Project Results & Simplicity Of Use: 43% of the respondents indicated the primary reason for using JOC is the urgency or need to complete the work in a timely manner. Other significant reasons cited for using JOC include simplicity of use, familiarity with the contractor, and the predictability of the process.
  • JOC Provides More Satisfaction Than Other Delivery Methods: 60% of the respondents stated that JOC provides more satisfaction than other most likely used methods (including design-bid-build, or design-build or CM at risk).
  • JOC Requires Less Time To Start Up A Project: 74.5% of the respondents stated that JOC requires less time to start a project than other most likely used methods (including design-bid-build, or design-build or CM at risk).
  • JOC Requires Less Time To Design A Project: 56.6% of the respondents stated that JOC requires less design time than other most likely used methods (including design-bid-build, or design-build or CM at risk).
  • JOC Requires Less Time To Close Out A Project: 63.2% of the respondents stated that JOC requires less time to close out a project than other most likely used methods (including design-bid-build, or design-build or CM at risk).
  • JOC Is Easy To Use: 70.8% of the respondents stated that JOC is more easy to use than other most likely used methods (including design-bid-build, or design-build or CM at risk).

 

JOC the Easy Way

 

It is important for the JOC industry to continually understand the needs and desired results the facility owners and support teams are looking for. The long term viability of JOC is closely tied to the perceived and actual value everyone is receiving. Performance of everyone in the JOC chain is critical to it's continued value and use.

 

In conclusion, this study demonstrates that JOC is providing high levels of owner satisfaction especially when compared to the design-bid-build project delivery method. Value can been seen in the reasons cited for using JOC: 1) it is responsive to the needs of the owner to get the work done; 2) it is simple to use; 3) the owner is allowed to work with contractors they trust; and 4) the results are predictable.

 

Contact Info: Greg Ohrn, Northern Arizona University, Greg.Ohrn@nau.edu