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Preparing Independent Government Estimates – IGEs is fundamental to achieving best value outcomes. Most Independent Government Cost Estimates are Not Well Documented. The best source of information for “construction” IGEs is a locally researched detailed unit price book. FAR 36.203. FAR 2.101 and 13.000.
The fact that detailed unit price cost estimates using this type of information is rarely used and shared among owners and design/builders is largely responsible for cost overruns. As a result, users of national average price books generally attempt to compensate by attempting to add extra hours to the work to be performed.
How to evaluate a JOC Unit Price Book (UPB). How to line-time estimate. How to create an independent government estimate (IGE) in JOC. How to compare an IGE to a Contractor estimate. How to “negotiate” with a Contractor. How to evaluate contractor proposals. When to use a JOC Cooperative.
Unit Price Books Construction Cost Data. LEAN Collaborative Construction Practices Construction Cost Estimating. Not surprisingly there is a great deal of confusion about Job Order Contracting, especially when it come to unit prices books and the use of appropriate and best value construction cost data.
DO – Use locally researched detailed construction cost data that is regularly updated for your JOC unit price book (UPB). DON’T – Do not use a national average cost book and attempt to create a UPB, with or without factors or construction cost indices (CCIs).
When prices for lines are used that are not derived from the unit price book, they are noted and referred to as non-prepriced line items (NPP). When NPP items are negotiated and incorporated in a task order, this does not incorporate the item in the UPB for subsequent use as a priced item.
Estimating Construction Costs for Job Order Contracts properly is critical to the success of any JOC program. Is the unit price book being used truly independent, objective, and transparent? Key performance indicators related to Estimating Construction Costs for Job Order Contracts: Average work order/project price.
The J OCPB (JOC Price Book: reflects the current local costs in detail for construction tasks expected to be performed in the geographical area of the base contract with the primary use of developing a detailed line-item price. This is a national average cost book that DOES NOT REFLECT LOCAL COSTS. 5117.9001 Definitions.
Check the math and extensions of each estimate. Apply the negotiated coefficient to the estimate total. Assume a non pre-priced item is not in the Unit Price Book. Allow proposals developed using line items other than those from the currently approved Unit Price Book and noted NPP items. Randomly verify line items.
Contractor prepares detailed line item cost estimate for the job order. Owner/contractor negotiations (as needed). Final Job Order estimate approved (or request cancelled) and ‘Notice to Proceed’ and ‘Job Order Package’ provided to contractor. This is also accompanied by a request for a joint site visit.
When entering into a JOC contract, a JOC contractor agrees to perform work at prices set forth in a Construction Task Catalog also known as a unit price book which includes current local labor, material and equipment costs. JOC Contract: Enforceable Contract or Mere Agreement to Negotiate. This is arithmetic, not negotiations.
4 Owner creates an independent, detailed, line-item cost estimate using approved, locally researched Unit Price Book, UPB , and approved JOC software (Note: a national average price book, even with the use of location indexes, is not recommended.). Contractor creates estimate. contract-required unit price book.).
Coefficient” – a numerical factor that represents costs (generally indirect costs) not considered to be included in the “Unit Price Book” (UPB) unit prices (e.g., d) An indefinite-delivery, indefinite-quantity (task order) contract which provides for the use of negotiated, definitive, bilateral orders (i.e., Definitions.
Assure fair owner/contractor negotiations occur for all individual projects in order to assure quality and timely work at fair and reasonable prices. Establish processes and guidelines for evaluating and negotiating Contractor Job Order Contract proposals. Place limits on the use of non-prepriced line times. contact-form].
The JOC Unit Price Book. Negotiations and Source Selection. Independent Owner Estimate Preparation. Protection of Owner Estimate. Negotiation of Job Order / Task Order. SAMPLE INDEPENDENT OWNER/GOVERNMENT ESTIMATE. COST ESTIMATE. Strategic Evaluation of Objectives, Goals, and Appropriateness.
Job Order Contracting (JOC) is both a LEAN construction delivery method and a method of procuring construction services through an indefinite delivery, indefinite quantity term contract, using task orders as needed for individual projects, where the task order price is based on a book of preestablished unit prices (Unit Price Book – UPB).
Build your knowledge of line item estimating with the JOC Unit Price Book. Verify line items, quantities, and coefficient(s) of internal Owner estimates and Contractor estimates. As an Owner, compare internal Owner estimates to Contractor Estimates for all estimates, or estimates over an established dollar threshold (i.e.
The JOC Unit Price Book. Negotiations and Source Selection. Independent Owner Estimate Preparation. Protection of Owner Estimate. Negotiation of Job Order / Task Order. SAMPLE INDEPENDENT OWNER/GOVERNMENT ESTIMATE. COST ESTIMATE. Strategic Evaluation of Objectives, Goals, and Appropriateness.
The JOC Unit Price Book. Negotiations and Source Selection. Independent Owner Estimate Preparation. Protection of Owner Estimate. Negotiation of Job Order / Task Order. SAMPLE INDEPENDENT OWNER/GOVERNMENT ESTIMATE. COST ESTIMATE. Strategic Evaluation of Objectives, Goals, and Appropriateness.
Focus must be upon negotiation and mutually satisfactory resolutions. Examples include, Introduction to JOC, Introductory Line Item Estimating, Advanced Line Item Estimating, and Negotiating Task Orders. JOC unit price books should be locally researched and updated annually.
. #2 Develop a more generalized scope of work without full A/E requirements, but with sufficient detail (potentially including an internal line item cost estimate) to enable the awarded JOC construction contractor to create an accurate and detailed construction cost estimate. contact-form].
Common Terms, Definition, including a locally researched, detailed unit price book for associated construction tasks. Planning, estimating, negotiating, procuring, managing, and closing out projects are all phases that are fully defined within a LEAN construction environment. Financial Transparency. Shared Risk/Reward.
In order for this to occur, and for ALL parties to receive the maximum benefit of JOC, owners must be competent and capable with respect to LEAN construction delivery methods and tasks such as detailed line item estimating and owner/contractor negotiations. Want to learn more? contact-form].
The latest (and correct version) construction cost estimates, drawings, issues, or reports are instantly available. How to Select a JOC Unit Price Book – White Paper – Download – Select a JOC UPB – A JOC Unit Price Book, UPB is very important to the quality, integrity, productivity, and transparency of any Job Order Contract.
Duncan Cartlidge, a Fellow of the Royal Institution of Chartered Surveyors as well as an Associate Lecturer at Glasgow Caledonian University , has written an exclusive book alias ‘ Construction Project Manager’s Pocket Book’. It is a sententious reference book improves the basic knowledge of a project manager to a great extent.
The latest (and correct version) construction cost estimates, drawings, issues, or reports are instantly available. How to Select a JOC Unit Price Book – White Paper – Download – Select a JOC UPB – A JOC Unit Price Book, UPB is very important to the quality, integrity, productivity, and transparency of any Job Order Contract.
Work scopes, government estimates, contractor’s proposals, awarded task orders, and contractor invoices are logically progressive, consistent and clear. Individuals involved with project scoping and development as well as proposal negotiations with the contractor must not be the same individual responsible for monitoring quality assurance.
JOC Solution – A long-term (3-5 years) contract for on-call construction • Competitive pricing established at outset of the contract through the use of a coefficient applied to a unit price book (UPB) • Best Value Procurement/Qualifications-based selection to ensure contractor performance • Individually-priced job orders. and Linda T.
The work management office also completes a desk estimate of the project cost to help determine the best method for executing the work request (in-house shops, competitively bid individual contracts or JOC). items can be compared with the same items in the Owner estimate. A lump-sum owner estimate for a total job is not acceptable.
Note: a “national average” price book, even if used with “localization factors” will not provide sufficient information for JOC Programs to assure the best possible outcomes for all parties.). Maximum and minimum construction value for individual JOC projects/task orders.
Required software, Unit Price Book, other “tools”, and training etc. What is a Unit Price Book? Job Order Contracts require a unit price book, UPB. Job Order Contracts require a unit price book, UPB. What are the characteristics of a “good” unit price book?
(a) Job Order Contracting (JOC) is an alternative contracting method to fulfill requirements for sustainment, restoration, and modernization (SRM) projects at installation level (post, camp or station), with an estimated value exceeding $2000 , but not exceeding the amount of SRM authority delegated to the installation by the ACOM and/or HQDA.
Unit Price Book: Do’s. The JOC Unit Price Book (UPB) should provide a sufficient number of unit price line items to assure the ability to create detailed construction costs estimates for each task of which the value derived from the UPB is at least ninety (90%) of the total construction value of the project. Ongoing Support.
Rory Woolseys Construction Estimating Blog. Construction Estimating One Bite at a Time. However, I received many comments and questions on the “Negotiating JOC” blog from last week that really should be answered. This is true for the basis of JOC, the construction task unit price “book.”
No contractor and limited A/E assistance with detailed estimating, plan checking, and constructability reviews during design phase. Agency CM can provide industry experience and estimating, scheduling, and project management expertise for the owner’s benefit. General lack of technical and cost visibility and transparency. Advantages.
One of the most difficult decisions in standing up a Job Order Contract is the owner’s decision about what type of Unit Price Book (UPB) is best for your JOC program. Customized books, which can have varying levels of custom cost data line items and varying approaches to localization. What is the value of customization?
Additionally while contracts are initially awarded competitively, change orders are negotiated without competition. Contractors are contractually required to submit detailed line item task listing for all change order proposals using a pre-approved, locally researched unit price book. Ways to Avoid or Mitigate Change Orders.
Allowance - a value in an estimate to cover the cost of known but not yet fully defined work. As-sold estimate - the estimate which matches the agreed items and price for the project scope. This total or subtotal is usually identified as such in an estimate report. Also known as Total Estimated Contract Cost (TECC).
All personnel concerned will ensure work scopes, owner estimates, contractor’s proposals, awarded task orders, and contractor invoices are logically progressive, consistent and clear. Unit Price Book. Project scoping and project quality control/acceptance activities will be kept separate. SOP OUTLINE. Introduction. Coefficient.
Extensive use of non-prepriced items was not necessary (items not derived from the JOC Unit Price Book). This essentially resulted in the City paying negotiated prices to the JOC contractors for work performed. Contractor bid extremely low JOC co-efficients (0.50 This was an understood practice within the JOC program.
The JOC Contract shall use the current calendar year issue of locally researched unit price cost data equivalent to the OpenJOC(TM) Unit Price Book – UPB (subsequently referred to as UPB) with updates as applicable, as a basis for unit cost. The total estimate for a JO is multiplied by by the contractor’s coefficient.
Abstract: This paper highlights the differences between e4Clicks Project Estimator Software TM - an integrated software solution for cost estimating and project management, and CostWorks – an electronic cost book and cost calculator. Lastly sharing detailed estimates is simple and easy. JOC Cost Estimating Class.
invoices and the appropriate unit price book for JOC work performed for under the contract. Cost Catalog / Unit Price Book / UPB / Unit Price Guide / UPG. to 1.20 multiplier applied to the the total of the line items for a project or task order estimate. It typcially includes all overhead items such as. AUDIT CYCLE.
Rory Woolseys Construction Estimating Blog. Construction Estimating One Bite at a Time. At the heart of and crucial to controlling costs is an accurate cost estimate which translates into a cost budget. A cost estimate then is very important to cost control. Tuesday, February 28, 2012. Scope, scope, scope!! Enough said!
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