JOCWorksTM

The Efficient Cost Estimating & Project Management Solution for Facility Construction, Renovation, Repair, and Sustainability.

© Copyright 2012, 4Clicks Solutions, LLCLocal Rights Reserved. All trademarks are the property of their respective owners.

What is JOCWorks?

The BEST electronic presentation of RSMeans Cost Data

Software Technology to efficiently deploy & manage Job Order Contracting (JOC) programs

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Who uses JOCWorks?

Anyone doing a lot of RSMeans-based line item cost estimates

Owners, Contractors, AE’s working on, or hoping to work on JOC programs.

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#2Anyone sharing, collaborating on RSMeans-based line item cost estimates

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Non-DOD Federal Government, County, State, Local Government, Higher Education, K-12 School ISDs, Airports…

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Built to enable Collaboration among Owners, Contractors, Subs, & AE’s.

Enhanced 400,000 Line Item Enhanced RSMeans Cost Data*

Integrated Estimate, Project, Contract, & Document Management

Automated Owner/Contractor Estimate Comparisons

*Including Full Descriptions, References, Graphics, Specifications

Exclusive JOCWorks Features

Set Contract Coefficients

Manage Multiple Project with Multiple Coefficients

Track and Report RSMeans Line Items and non-RSMeans Items (Priced and non-Priced)

Specifications Linked to Cost Estimate

Track Project Status – From Concept Through Warranty

Additional JOCWorks Features

JOCWorks Software OverviewAccuracy, Transparency, Improved Productivity

Rapid ImplementationEasy-to-use, Single seat to Network/INTERNET deployment

Consistent UsageOrganization’s JOC procedures embedded in software

TransparencySystem-wide RSMeans-based UPB (North American Standard)

CollaborationBuilt-in estimate/project/document/contract management

Performance GainsEstimate re-use, shorter project timelines

JOCWorks Benefits

JOCWorks BasicTargets Sub-Contractors who estimate and don’t require contract, document, or project management features. Includes the Basic Version of eTakeoff.

JOCWorks AdvancedFor General Contractors and Sub-Contractors who require multiple project management, document management, contract management, advanced estimating features, exporting to Adobe PDF and Microsoft Excel importing other external databases. Includes the Pro Version of eTakeoff.

JOCWorks PROFor Owners to estimate and manage entire contracts or programs in a single product. Premier is used through-out the country on single and multiple award JOC and IDIQ contracts. Estimate Comparison and Technical Evaluation features are included in this version. Includes the Premier Version of eTakeoff.

Perpetual and Subscription Pricing Models

JOCWorks Software Versions

NOT competitive products

CostWorks is an excellent electronic version of “as is” RSMeans Cost Books without line modifiers, enhancements, estimate / project / contractor /contract / document management or visual estimating/QTO.

JOCWorks is an advanced estimating, project management, contract management, document management package inclusive of visual estimating.

JOCWorks vs. CostWorks

JOCWorks Software – Traditional perpetual license and subscription pricing models

Custom Unit Price Book / Cost Data Engineering Services

Software Training* - Owners, Contractors, and AEs

Consulting and Marketing to Support JOC Program

* Regional, On-site, Virtual/Remote

JOCWorks – Full Product & Services Offerings

Why does JOCWorks costs much more than CostWorks?

JOCWorks is a powerful, integrated, and collaborative cost estimating and project management software package. The initial cost difference is insignificant vs. the value JOCWorks provides via more accurate estimates, fewer owner/contractor negotiations, and the ability to create estimates, including specification in hours vs. days, or minutes vs. hours.

Can I create custom line items in addition to RSMeans line items?

a. Yes. Custom line items can be created for the Owners UPB, or a totally custom UPB or IDIQ price book used.

b. Once a UPB is created and the JOC program is running, and non-priced items are noted and appropriately handled.

How often is the UPB cost data updated.

This is entirely up to the Owner when establishing the JOC contract. We recommend annual price updates at a minimum, with quarterly updates via CCI available.

Frequently Asked Questions

How old is JOC?

JOC is proven to be an extremely efficient construction delivery method vs. tradition design-bid-build for the numerous renovation, repair, sustainability and minor new

construction projects encountered by Owners, Contractors, and AEs. JOC was first deployed in the 1980’s and is currently being used to manage billions of dollars of

projects annually. Documented savings have been demonstrable via more efficient procurement, shorter overall project timelines, and better, longer term owner/contractor relationships.

A Primer for Job Order Contracting (JOC)(Source - Material adapted from work done by Lisa Cooley, Centennial Contractors)

“Job Order Contracting (JOC) is a method of managing multiple details of renovation, rehabilitation, repair, and other construction projects on a predetermined set of pricing and standards. By using JOC customers take advantage of a process that is fast and responsive to their needs while providing excellent quality construction.”

--Center for Job Order Contracting Excellence (www.jocexellence.org)

Faster project delivery (3-9 months less) Streamlined engineering and design Cost visibility/transparency Better contractor performance Integrated Team - Partnering/collaborative

owner/contractor relationship More opportunities for local business Effective use of year-end funds

Higher overall satisfaction*

JOC Benefits / Results

Series1

0%25%

50%75%

100%

Non-Partnered/Low BidNon-partnered/Best Value SelectionPartnered/Best Value Selection

*Mulcahy, Francis S. The Effectiveness of Partnering and Source Selection in Job Order Contracting. Master’s Thesis, University of Washington, 2000.

JOC / non-JOC Timeline Comparison

Long-term contract fosters a higher level of investment in making the working relationship work.

A program not a project. Allows development of a

trusted partner.

A Long Term Program… not just another project!

Pricing structure relies on a Unit Price BookStandardized, but enhanced 400,000 line item

RS Means Cost DataCustom and/or localized UPB and/or line items.Competitively-bid coefficient (multiplier,

factor) establishes pricing at the outset of the contract.

Coefficient includes all costs including materials, labor, overhead, profit, and sometimes bond and tax.

Example:1 SF Drywall $1.00Coefficient .92 -0.08Contractual Price $0.92

The Pricing of JOC Projects

Delivery orders are firm fixed price, lump sum

UPB is an estimating tool

Unit price proposals represent contractor’s committed price—it converts to lump sum

Change orders rare, and with consistent pricing structure

Brings IPD/CM advantages to smaller projects but in an efficient way with an at-risk incentive to perform.

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JOC Delivery Order Pricing

Items not appearing in the Unit • Price Book are considered Non

Pre-priced Items (NPP) Typical NPP options:

• NPP coefficient serves as a markup on three transparent subcontractor bids

• NPP markup can be set per contract provisions • Once a new unit price is negotiated it can be

incorporated into the contract• Some contracts will prohibit or limit NPP items as a

percentage of delivery orders.

Sample Contractor Bid:UPB Coefficient .92 applied to line itemsNPP Coefficient 1.18 applied to actual sub costs

Non-priced Items

Either the Unit Price Book or the Coefficient is usually adjusted annually

Dynamic cost databases generally maintain the same coefficient

Customized price books typically adjust coefficient annually according to an industry benchmark (RSMeans City Cost Index-CCI), and/or add customer-specific unit price line items

Goal is to help contractor and owner manage risk

Dynamic vs. Static Costs

Change Orders are rare in JOC• Owner-initiated• Truly unforeseen conditions

UPB governs original scope of work and scope added after• Puts owners at an advantage when directing

changes in the work

Change Orders and JOC

Analyzing potential JOC volume• Review historic project data (2-3 years) and reconcile with

budget projections. Segregate projects by size, location, type, etc.

• What will your JOC “bandwidth” be?• All-inclusive, or selective? As defined by scope, or urgency.• Size limits? Consider in-house capabilities, other contract vehicles, and

political influences

• Define contract footprint, including potential regionalization• Single or multiple award

Numbers to consider.• $3M—minimum annual volume for standalone JOC program• $6M—maximum efficiencies are achieved, allowing addition of

support staff• Many owners with less volume can access JOC through

purchasing cooperatives

Owners Preparing for JOC

Assess in-house capabilities• Project Management Capacity• Skillsets

• Line-item estimating, or ability to review estimates, Proactive definition of scope, In-house maintenance crews

• Training Plan How will JOC interface with your design

professionals? Flowcharting how JOC process will interface with

purchasing, management and board approvals

One Owner’s Management Plan:Each PM manages 15-20 projects simultaneously, up to 50 per year

Owners Preparing for JOC

Company culture of high performance needed to succeed in JOC?

Ability and capacity to create productive teams? Proactive rather than reactive? Line item estimating capabilities?

Contractors Preparing for JOC

Considerations that drive the coefficient: Contract volume (higher volume = ⇩) Geographic dispersion of projects (further apart = ⇧) Type of work Average size and size range of delivery orders Three S’s: Supervision, Security, Safety Contract Administration Cost For RS Means, Division 1 provisions and column used

(Bare Costs vs. O&P column) UPB used Marketing costs Look at historic coefficients, but beware of changes

that can impact the coefficient!

Contractors Preparing for JOC

Bidding the Coefficient: Two ApproachesHistoric CostsReconcile 2-3 historic projects where final costs are known against a line item estimate generated from UPB Focus on Divisions 2, 9, Mechanical and

Electrical?Program CostsCalculate total personnel and overhead costs to manage the program, reconcile with typical project costs and then reconcile unit costs with select line items

Contractors Preparing for JOC

Once a JOC Program is in place, client project demands/requests happen over the contract term. This starts the JOC Process:

The JOC Process

Scope Variability - Detail of Owner scope preparation varies according to: Owner preference and skillset Owner people resources available When in planning cycle project was identified for JOC

Owner Provides:Project Need, Target Budget

Owner Provides:Defined Scope

Document

Owner Provides:Complete Bid Documents

More turnkey, contractor led More proactive owner involvement

Range of Owner Participation

The JOC Process - SCOPE

Typically within days Collaborative Process Goal of capturing

every necessary component of work

Site Visits

• Demo / dispose of 3 existing lights Reuse existing circuit for new lights.

• Remove & replace 2 existing HVAC grilles

• Install gyp ceiling at 8' 8" with 4 new surface mounted explosion proof lights. Relocate existing smoke detector to new ceiling

• Demo CMU for 42" opening min. (exist opening +/- 36")

• Demo & dispose of existing metal partitions and replace with new 4" CMU covered completely with ceramic tile, with one block

scupper at bottom of each

• Remove and reinstall existing 3 urinals and 2 commodes

• Demo ceramic tile, floors and walls, (exist ceramic on walls is approx. 8'-0" high)

Owner/Contractor-Joint Scope Development /Documentation

Performed in-house

Included in coefficient

Will engage design

professional when needed

Major building system engineering

Structural Life-safety

Targeted or Incidental Design

Presented to owner for approval

Important confirmation step for aligning vision and expectations prior to proceeding with labor-intensive line item proposal

Scope and Work Plan Submitted to Owner

The JOC Process - PROPOSAL

Generation of the line item estimate Assurance of a fair price:

– Are the line items appropriate?– Are the quantities correct?

Owner has to understand the process and have faith that it provides competitive value

Proposal Format

Project Execution

The Program First used JOC through a cooperative,

then solicited their own contract Sophisticated owner that uses JOC in a

targeted way RSMeans UPBThe Value Badged and screened contractor and

subcontractors who understand the security logistics of working in an airport environment

A contractor who will go the extra mile to meet ambitious schedules

Faster, Faster, Faster!

Case Study – DFW Airport (Dallas/Fort Worth)

JOC is a form of IPD – Integrated Project Delivery Emphasis on Pricing Transparency Integration Across the Building Lifecycle JOC of the Future Blog Technology Changes:

– Link to Building Information Modeling– Cost Databases and Estimating Approaches will

further evolve to reveal lifecycle costs “Greater Good” goals

– Small and disadvantaged business utilization– Sustainability

The Future of JOC

Center for Job Order Contracting Excellencewww.jocexcellence.org

RS Means—Unit Price Books, Training, JOC ConsultingRobert Gair, bgair@rsmeans.com, www.jocworks.com

4clicks—Estimating/Management software for JOC programshttp://www.4clicks.com/

Kosten-Technik International—JOC estimating services for owners and contractors

http://www.kosten-technik.com/

Job Order Contracting - RESOURCES