Is it time to renovate part of your office building?
Facilities Management (FM) has a new program that may make the
renovation even easier.
Job Order Contracting (JOC) is a new program being developed to streamline the
bidding process for small- to medium-sized construction, renovation or repair
projects at Emory. It’s meant to address only the work that currently requires
bidding and formal procurement and will bring substantial time and cost savings
to the Emory community.
The program’s greatest value comes down to two factors: first, improved
relationships between FM and the Emory community as well as with a proven group
of contractors; second, its costs and potential savings. The JOC program, through
its shift to long-term thinking, has an expected total aggregate cost savings
of 8–23 percent.
Each small- to medium-sized project at Emory currently is bid out on an individual
basis. Planned for a February launch, the JOC program will identify five select
contractors to participate based upon their qualifications and their ability
to meet the prices in a comprehensive task list.
With the help of a consulting group, FM will identify anticipated tasks that
might be involved in projects of this size. The tasks are then given a unit
price that accounts for the cost of local materials, local labor and equipment.
Each contractor is responsible for identifying “adjustment factors” over
eight different circumstances (such as compensating for after-hours work).
Think catalog shopping. The JOC program and participating contractors will be
able to meet the prices in the catalog of task lists with an agreed upon allowance
for adjustment factors.
Now think volume shopping. Rather than just competing for one project, JOC contractors
essentially are competing to be favored for future projects for the next five
Performance is critical for future success. JOC contractors have a base period
of one year under the contract, renewable up to four additional years. Being
part of JOC creates for the contractor an opportunity to earn up to $2 million
per year. One of the principles behind the project is to invest in contractors—with
the intent that the investment will be reciprocal.
JOC contractors will be considered for future projects by maintaining clean project
sites, responding in a timely manner and producing high-quality work. These are
just a few of the benefits FM customers can look forward to enjoying. Here are
a few others:
• Relationships. Customers will benefit greatly from an enhanced relationship
with an FM project manager. The project manager brings a wealth of expertise,
including knowledge of the building standards for the University and utility
systems, and the motivation to ensure any renovation is done appropriately.
This relationship can reduce the changes and additions that can happen once a
project is under way, as well as any maintenance issues once it is complete.
• Online access. Customers will be able to submit work requests for an evaluation
and even “shop” online to assess the price of project components.
• Competition. Contractors first compete to participate in the program,
and this competitive spirit lives on as the participating contractors still compete
with one another in order to “win” each future job.
• Fixed project price. The project is given a fixed amount from the agreed
pricing in the JOC contract. If a part or item is missed in the bid, the expense
for the item goes to the contractor.
“The JOC program isn’t taking away any of the work we are currently
doing in-house,” said Charles Norris, assistant director of plant operations. “It
addresses work that we are already bidding out. It’s just another option.”
Customers with renovation projects costing less than $100,000 will have the choice
to participate in the JOC pogram or to bid the project out individually.