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Moderator Robert Gair Principal, RSMeans Business Solutions 20 +years of construction industry experience in cost mod - PowerPoint PPT Presentation

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Moderator Robert Gair Principal, RSMeans Business Solutions 20 +years of construction industry experience in cost modeling and job order contracting Provides property management solutions to federal agencies such as the Department of Energy, Department of Labor, and State Department

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Robert Gair

  • Principal, RSMeans Business Solutions

  • 20 +years of construction industry experience in cost modeling and job order contracting

  • Provides property management solutions to federal agencies such as the Department of Energy, Department of Labor, and State Department

  • 2009 Industry Chair for the Center for Job Order Contracting Excellence


Before we begin
Before We Begin…

  • Technical issues

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  • Q&A Session

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    • Speakers will answer as many questions as they can in the allotted time

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  • 3


    Allen Henderson

    Consultant, Author, Former Facility Manager Texas State University

    • 35 years of construction industry experience

    • 25 years at Texas State University-San Marcos

    • Author of Job Order Contracting--Expediting Construction Project Delivery

    • Board member for the Center for Job Order Contracting Excellence


    JOC—The Tool of Choice--by Allen L. Henderson

    • Interior Building Renovations

    • Exterior Building Rehab

      • Door Replacement

      • Window Replacement

      • Roofing Replacement

  • Hardscape & Landscape

  • Demolition and Environmental

  • Code & Regulatory Modifications

  • Mechanical, Plumbing, & Electrical Upgrades

  • Total Renovation

  • Routine Facility Maintenance & Emergency Work

    *Before using JOC, facility owners should review applicable state and local laws in their area to determine if there are any restrictions against its use.

  • 5

    What’s Different with JOC?

    • JOC allows on-going, or IDIQ construction services---not a project-specific delivery method.

    • JOC Contractors have an incentive to provide good performance to Owners.


    General Observations

    • If new to JOC, start small.

    • Designate a JOC Contract Manager.

    • Good JOC contractors are service-oriented.

      • Quick response to owner requests

      • Submit sufficiently accurate Job Oder Proposals

      • Use local businesses

      • Professional quality workmanship

      • Change orders are rare

      • Meet project budget and timelines

      • Become familiar with Owner’s need and expectations.


    General observations
    General Observations

    • JOC Relationships

      • JOC mandates a relationship of some sort.

      • JOC contractors should submit sufficiently accurate Job Oder Proposals.

      • Have a thorough RFP evaluation process.

      • Be cautious of exceptions to any pricing restrictions.


    About joc contracts
    About JOC Contracts


      • Some have no pricing restrictions at all = lower price coefficient

      • Some have pricing restrictions = higher coefficient

      • Pricing is more predictable with restrictions


    Have a start up meeting
    Have a Start-up Meeting!

    • Address requirements and processes

      • Payment and invoicing, HUB goals, permitting

      • How can green materials and sustainable design be used?

      • Job Order review and approval process

      • Contractor reporting and project scheduling

      • Contractor response and project supervision expectations

      • Jobsite inspections

      • Any other issues of relevance



    • If the contractor succeeds, so does the owner!

    • Successful relationships require consistently open and honest communication.


    Ways for Owner to Partner

    • Examine internal project planning process.

    • Examine Job Order review and award process.

    • Generate list of commonly used materials and equipment.

    • Bring contractor in early in design phase.

    • Provide access to all applicable record documents.

    • Accommodate Contractor access to proposed project site.

    • Assist with permitting process, if needed.

    • Discuss access and staging issues---identify needed equipment.

    • Address issues to minimize impact on existing operations.


    Jo proposal review tips
    JO Proposal Review Tips

    • JO proposal reviewers should be experienced and well trained in general construction.

    • Verify pricing using the same software as the contractor.

    • Reviewers should be familiar with project scope.

    • OK if more than one reviewer.

    • In-house tradesmen can assist in review process.

      Have the JOC tool within reach

      and Good Luck!



    John Murray

    State of Missouri Division of Facilities Management

    • Vice Chairman of the Planning & Zoning Committee for the Village of Wardsville, Mo

    • AIA-CEC-MO Liaison Committee member




      • 2005 Statute limited up to a maximum of $100,000 per project

      • 2007 Statute changed to maximum $300,000 per project

      • Small, relatively simple projects

      • Design limited to DD




      • 4/7/2006 to 4/22/2008

      • 34 Projects

      • $3,039,593.00


    • 4/22/2008 to 4/2/2010

    • 86 Projects

    • $5,012,086.00


    • 4/1/2010 TO 3/31/2011

    • 1 year contract

    • 4 – One Year Renewals Available

  • 17


    • Originally R.S. Means Cost Works

    • Currently R.S. Means JOC Works Pro

    • Project Cost Development

      • Owner Scope & Design

      • Walk Through

      • Contractor Proposal

      • Owner Review

      • Negotiation

      • Notice to Proceed (NTP)

      • Performance of Work





    • TRUST



    Mark Bailey

    President & CEO, Centennial Contractors and Enterprise, Inc.

    • Provides vision and direction to employees in over 40 offices across the country, focusing on Job Order Contracting and IDIQ contracts

    • 27 years of construction industry experience, ranging from superintendent and estimator to heavy civil contractor and project manager

    • Authored an article about Job Order Contracting for ENR

    • A member of the National and Virginia Chapter of Associated Builders and Contractors, Society of American Military Engineers, Design-Build Institute of America Center for Job Order Contracting Excellence


    JOC: A Contractor’s Perspective

    • JOC Requires a Different Contractor Skillset and Mindset

    • Shares Collaborative Spirit and Process with Integrated Project Delivery, Design-Build, and CM At-Risk

    • Emphasizes Partnering & Teamwork

    • Focus on a Long-term Relationship that is Responsive to Owner Needs

    • Builds Quality Results & Improved Performance Over Time

    “The hardest thing for your competitors to match is the most unique aspect of your organization - the MINDS and HEARTS of your employees”

    - Lee J. Colan, Passionate Performance


    Keys for a Successful JOC Program

    • Ensure that JOC is the right fit for your organization

    • Ensure Adequate Program Volume

    • Consider your JOC bandwidth and “JOCable” projects

    • Select the Right Contractor - Best Value or Qualifications-Based Process

    “The beginning is half of every action.”

    - Proverb


    Successful JOC Program Startup

    • A Higher Level of Investment in the Working Relationship

    • Alignment Between Owner and JOC Contractor

    • Matching Personalities—What Does Our Client Look Like?

    • Clear Understanding Of Customer Processes, Expectations, Subcontracting Goals, Sustainability Goals, Paperwork Requirements, etc.

    • Everyone In Client Chain Understanding The Value of JOC

    “A working relationship takes work.”

    – John Hanley


    JOC and Sustainability

    • Greening Your Existing Building Stock

    • Collaborative JOC process and pricing allow for a careful analysis of cost/benefit

    • Support of LEED EB

    • An alternative to Energy Performance Contracting that gives the owner more control

    • Designing The JOC Program

      Around Your Sustainability Goals

    Are you green and growing or ripe and rotting? -Ray Kroc


    JOC and Stimulus

    • JOC used by many federal agencies to expedite ARRA funds

    • Transparency and Accountability In Pricing Structure

    • Contractor Familiarity with Paperwork Requirements

    • Utilization of Small Local Businesses Meets Stimulus Goals

    • JOC Gives Owners a Shovel Readiness Tool to Maximize Funding from any source

    “The recession is lingering, and so is the unspent stimulus money that was meant to help end it . . . Local governments lacked the staff to make applications or handle the money they received. And federal money comes with strings attached..” – New York Times article, August 13, 2010


    The Added Value of JOC

    • Flexibility—matching project scope/goals to available budgets

    • Targeted Design: The Right Level Of Design For The Project Needs

    • Helping Owners Think, Plan & Find Solutions

    • Building Safety Into the Project

    • Making Sure The Local Small Business Community Benefits from Project Dollars

    • Creating a financial Incentive for the Contractor that aligns with the owner’s goals for contractor performance

    Happy Customer


    More Work

    “The cynic knows the price of everything and the value of nothing.”

    - Oscar Wilde