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Survey Says Building Owners Warm to Job Order Contracting
A new survey of building owners indicates that the majority of them believe job order contracting (JOC) is easier to use for procuring construction service than other methods, including design-bid-build (DBB), the most common method used today.
The nationwide survey conducted by Northern Arizona University found that 71 percent of facility owners who use JOC think it is easier to use than other methods, including DBB and manager at risk. Of the remaining total, 16 percent thought JOC was harder to use, 9 percent saw no difference and 4 percent were unsure.
The majority of owners (60 percent) also thought that JOC is more satisfactory to use than other methods, according to the survey. Specifically, 69 percent of respondents found JOC more satisfactory than DBB construction.
Devised in the 1980's by Defense Department procurement specialists seeking to clear a backlog of construction projects, JOC allows an owner to award general contractor a multi-year contract for a fixed-price construction services, without specifying delivery of quantity.
JOC has the potential to shrink lead times for building projects by eliminating separate bid solicitation and approval, proponents say. Reduced advertising for request for proposals, and less pre-project design drawings can also generate savings. Savings can average 6 percent, according to the Scottsdale, Ariz.-based Council of Educational Facility Planners International.