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What are the requirements for Job Order Contracting in Facilities?

Job Order Contracting (JOC) is a procurement method used by facility owners to deliver multiple small to medium-sized repair, renovation, and maintenance projects quickly and efficiently through a pre-established, competitively bid contract with a single contractor. It is particularly suited to ongoing facilities management in commercial real estate.

Key Requirements for Establishing a Job Order Contract

  • A competitive tender process must be conducted to establish the JOC with a qualified contractor
  • A comprehensive unit price book (UPB) is established listing pre-priced construction tasks and materials
  • The contract specifies the term, annual minimum and maximum work value, and geographic coverage
  • Each individual project (Job Order) is scoped, priced, and approved using the pre-established unit prices

How JOC Works in Facility Management

  • Facility manager identifies a repair or renovation requirement and develops a detailed scope of work
  • The scope is priced by the JOC contractor using the UPB unit prices without additional bidding
  • Pricing is reviewed, agreed, and a Job Order is issued for the contractor to commence works
  • Individual Job Orders are managed through completion with the same oversight as conventional projects

Benefits for Commercial Property Owners and Managers

  • Eliminates time-consuming tender processes for individual maintenance and repair projects
  • Provides price certainty through pre-established unit rates based on competitive market benchmarks
  • Enables rapid project delivery works can commence within days rather than weeks of requirement identification
  • Reduces administrative burden and procurement costs for high-frequency small to medium facility projects

Job Order Contracting is an efficient and cost-effective procurement solution for commercial property owners managing ongoing facility maintenance and improvement programs. Well-structured JOC arrangements deliver faster project delivery, competitive pricing, and reduced administrative overhead while maintaining the quality and compliance standards required for institutional commercial property portfolios.

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