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Advantages Of Using Job Order Contracting

By Ann Kelly


The choice of project delivery method used for construction, renovation and rehabilitation projects has a great impact on the time and finance allocated for it. Since most of these developments are in phases such as design phase and construction phase, the processes involved and using Job Order Contracting as a delivery tool will improve on working relationships between the owner and the contractor and save on overall time.

In recent times, many organizations would employ the selection of awarding of professional designers to come up with the ultimate design of the plan and later on selecting contractors for the construction phase. This method which is also known as the design-bid-build method did work but generally led to a distant relationship between the plan participants due to it being process-oriented.

Today proponents have indeed taken a preference to job order contracts making it a popular tool in the construction industry. This tool is more service-oriented which creates a proper working relationship among the project owner and the participants in the design and construction phase. Facility owners who have small to medium sized developments both public and private are the most common users of this tool.

This particular tool has a greater sense of accuracy when it comes to pricing of the plan as the criteria used is often precise, objective and consistent. Due to the fact that the work is set out for a specific amount of time, the tool allows the individual to have a budget estimate that will cater for all phases and meeting all the expected targets in good time.

Another advantage of this tool is that it is the best option for individual who are looking to complete a number of small and medium sized plans that involve renovation and repair. The proponent usually identifies the task to be done, giving a brief description, desired expectation and a brief on the dates and time for the task to be performed. The proponent will then proceed to ask for a request for proposal which could include the design, work scope and price proposal.

Since this tool creates a good work relationship among the participants, the owner, designer and the contractor will work side by side in identifying characteristics and issues that will need to be checked on in order to provide the best economically means to perform the work. Site visits done by participants can help complete this task. This will then lead to the submission of the request for proposals for the owner to go through.

With the approval done, the individual is able to carry out numerous developments to be done hence using time optimally. The completion of the development in good time will however depend on the efficiency of contractors selected. This requires a good amount of background checking which should be done by the proponent so as to avoid surprises or disappointments upon the commencing of work

It is also important for the owner to get proof that the company chosen indeed does exist. Proponents can receive a number of RFPs from companies that may not even exist. To prevent such fraudulent acts, the individual should be precise in checking for the credibility of the company it has chosen to work with before approving the RFP.




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