JOC (Job Order Contract)
JOC stands for Job Order Contract. A job order contract is an IDIQ used for many small construction, repair and renovation projects. Instead of bidding each project, the contractor bids an adjustment factor, also called a coefficient, that is multiplied against a book of preset unit prices.
When a project comes up, the owner and contractor agree on the tasks and quantities from the book. Price is quantity times unit price times the coefficient. JOCs are used by federal, state, local and school agencies.
Why it matters to a small contractor
JOC holders lean heavily on local subs for electrical, plumbing, roofing and paint. If your area has a JOC holder, get on their sub list; it can mean dozens of small jobs a year.
Example
A JOC contractor bid a 1.05 coefficient. A restroom renovation prices out at $40,000 in the unit price book, so the job order is $42,000.
JOC: common questions
What is a coefficient in a JOC?
It is a multiplier the contractor bids that covers overhead, profit and local cost differences. Lower coefficients usually win.
Who writes the unit price book?
Agencies usually use a published construction cost book, adjusted for local prices.
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