Last edited 27 Jul 2020

Job order contracting

Contractorterms.jpgJob order contracting (JOC) is a procurement method (primarily used in the United States) for contracting construction services. JOC uses the key parameters of time or money in the vendor selection process. Contractors bidding on a JOC project know the job will be rewarded for a set period (or fixed term) or maximum budget (or fixed price) - whichever comes first.

JOC is frequently used for recurring jobs or renovation projects, in particular, when speed is a priority. It can also be applied to deferred maintenance work that has accumulated over time.

When budgets are firm, this method limits change orders. It also requires that service providers adhere to the original contract database of set prices associated with specific tasks or materials.

Clients such as publicly-owned organisations, academic institutions and government entities, use JOC more often than private businesses. It is seen as an alternative to the traditional procurement route (design bid build).

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