Performance Based Studies Research Group

Authors: Dean Kashiwagi
Topics: Job Order Contracting, performance models

-Abstract-

Today’s facility owners and managers all face a growing challenge: how to obtain performing construction services delivered in a timely and economical fashion, to maintain their facilities. Job Order Contracting (JOC) is an innovative procurement/construction process using unit prices that minimizes the following problems:

1. Lack of timeliness and cost effectiveness of the procurement of repetitive repair and maintenance work.
2. Working with contractors who are forced to get jobs by being the "low-bid" or compete with contractors with the "low-bid" mentality (get the job with the low bid, and then reduce construction quality or use change orders to make a profit).
3. A lack of a "long term" partnering relationship between the facility owner and the contractor in an environment that is variable, filled with risk, and difficult to define.

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