In the last few years, Integrated Project Delivery (IPD) has emerged as an accepted delivery method along with Design/Build, CM, CM@R and of course, Job Order Contracting. Several organizations collaborated together and published a white paper titled “Integrated Project Delivery for Public and Private Owners.” The paper was authored by NASFA, COAA, APPA, the Association of Higher Education Facilities Officers, AGC and AIA and described the IPD delivery method and explained that it is a collaborative alliance among project stakeholders – owners, designers, contractors and other participants – to optimize the project results. Several years ago, during one of the Construction Owners Association of America conferences, I had the opportunity to attend a one-hour breakout session dedicated to IPD. Two case studies were presented on projects executed by the Corps of Engineers that showed the effectiveness and expediency of this method. Reflecting back on this, I wanted to share the appropriateness of utilizing the JOC as an effective IPD to expedite the execution of projects aimed at reopening facilities of all types. In this article, I will address two questions: What is IPD and how is JOC is inherently an IPD method? The other question is how JOC, as an IPD, can support facilities managers in executing projects to facilitate getting the facilities ready to open as quickly as possible.
So what is IPD and why is JOC an IPD delivery method? Numerous papers and articles have recently been published about IPD detailing this delivery method. In summary, IPD advocates pulling together the owner, contractor, designer, and others to achieve higher project results, which in turn increases the overall value to the owner. It promotes collaboration and partnership; it is about integrating design excellence with constructor’s expertise early on during the conceptual stage of a project lifecycle. Accordingly, the risk profile and allocation changes significantly from other traditional delivery methods. It facilitates the expedient execution of projects. It promotes efficient delivery of results in shorter time than traditional delivery methods.
IPD and Job Order contracting (JOC) have several things in common. One can find several similarities between the two delivery methods. For example, JOC is also based on close collaboration between all stake holders. Just as partnering is a prelude to IPD, it is the foundation that a successful JOC program is built on. Traditional construction delivery methods typically have an adversarial relationship. JOC, on the other hand, is a long-term contract of three to five years which promotes close and effective working relationship between contractor, client and subcontractors. A JOC contract is inherently built on partnering in order for the long-term relationship to succeed.
Early involvement of the construction manager and the contractor with the owner and the designer in the conceptual phase of the project is another similarity with IPD that brings value to the owners. Joint scope of work development under the JOC program is a typical feature as the starting point for each project (task order) under the contract. Bringing the JOC contractor together with the owner and the designer, when applicable, provides higher level of common understanding of the scope of work. This helps to eliminate potential disputes and change orders that traditional construction delivery methods are known to suffer from. Another advantage that early involvement brings under a JOC contract is the ability of the contractor to provide input about the potential cost, constructability, and value engineering that aids the designer in making more efficient and cost-effective decisions.
Common processes are yet another similarity between JOC and IPD. Establishing shared processes that govern the flow of information and communication between all project participants is critical in both delivery methods. These processes develop an effective and transparent transfer of information in all directions with the goal of creating and building trust. After all, a JOC program is only as successful as the ability of all participants to trust each other. An effective and successful JOC contractor focuses their efforts on building and maintaining the trust with their clients and subcontractors.
Lastly, risk sharing is an advantage both delivery methods bring to the owner. As scopes of work are jointly developed, discussed, agreed to and finalized, a JOC contract is much less likely to have claims, change orders, and disputes than other traditional delivery methods.
How can JOC, as an IPD, make facilities managers’ jobs easier to be ready to reopen their facilities? JOC processes allow for pricing transparency and flexibility. In other words, the JOC contractor can work with the facilities owner to modify the scope of work to fit the budget. Through price transparency, the owner can easily identify which portions of the scope can be modified to fit the budget. Experienced JOC contractors bring a wealth of design and engineering expertise to the table. When you couple the pricing and scoping flexibility with engineering design expertise provided the JOC contractor, not only do you gain efficiency, but also an expedited delivery process. Currently there are several COVID-related cleaning, purification and mitigation design concepts and equipment. Working with the JOC contractor to provide design expertise and pricing flexibility is very advantageous to facilities owners. If you are one of the fortunate facilities managers who are currently using JOC, your JOC contractor brings the knowledge of your facilities most recent status and needs.
JOC is not the only delivery method to achieve “reopening” your facilities, but as an Integrated Project Delivery, JOC is the most efficient way to expedite the reopening process.
Written by: Rick Farrag, Director, Design & Construction
