Facts You Should Know About A Job Order Contract

By Patricia Richardson

Having or creating an agreement of a term that is fixed is referred to as a JOC. This is also called the term of maximum value of dollars. Usually, the contractor to be handed the JOC is chosen based on competitive bids. The selected contractor is then required to perform the various tasks for the agreed period or during the life of the job order contract. This agreement usually follows very strict rules that should be followed to the latter to avoid penalties in case the set code is violated. Check out some of the guidelines of this agreement.

JOC is used when there is well-defined, repetitive or recurring work where there is a need for quick execution. The JOC is thus not used for a single project. This should however not be an option where there are other options in deciding the way forward to deliver a certain job or improvement. This means that there are some job improvements that do not require a JOC.

This kind of agreement is appropriate for repetitive work. For instance, small renovation jobs are excellent for this kind of contract. The agreement allows the contractor to have a longer relationship when undertaking the various jobs that have been issued under the agreement. Therefore, professionals can take JOC in case there are any recurring jobs that they are supposed to handle. The contractors are usually selected and the unit price becomes fixed.

The term for the JOC usually lasts for a year. Once the agreement expires, the contractor or the owner can opt to terminate or renew the agreement. This depends on the one that come first. If the contractor is well compensated, he/she can decide to renew the contract and vice versa. Also, if the owner is satisfied with the work, he/she can decide to renew the contract.

JOC dramatically simplifies things. This is one of the reasons why this agreement is used by so many people. It makes complicated duties to be simple. Hence, the contractors have an easy time executing their duties. This means that the jobs will be simple and will be completed in time. Thus, no deadline will be violated.

It is also advantageous to utilize JOC to create a single agreement. This agreement will be used to cover all construction processes that should be completed within the speculated time. This means that a lot of time will be saved because the agreement will cater for several projects all at once. Also, the cost will be reduced.

Since this agreement follows a set of rules, it will make things easier as they will be more predictable. The owner and the contractor will hold an initial meeting and evaluate all the work that needs to be done. Once the scope of work has been assessed and the time-line has been set, a price proposal is made.

It is important to have a JOC during construction work because you will have everything in control. More so, there is time for the owner and the contractor to negotiate the price and come to an agreement that will favor both parties. Therefore, it is advisable to have a JOC.

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