Things You Should Understand About 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.

This agreement is basically used on well-defined, recurring or repetitive jobs that need to be executed quickly. This agreement is therefore not applicable for single projects. Nevertheless, this option should not be used as an option in case there are other better ways of execution a certain job. This is because there are some renovations or improvements that do not need 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.

Normally, the term for JOC is one year. The contractor can then decide to renew or terminate the agreement. These are the two options that are granted at the discretion of the University. When the previous agreement expires, the contractor can decide to renew or terminate the agreement, whichever occurs first. The adjustment of the term is usually updated every year but not necessarily at the beginning of every new term.

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.

The JOC is also used to create one agreement for multiple improvement jobs, rather than one agreement for each task. This means that all the processes of construction will be covered by this agreement. This makes it very easy to handle or execute the jobs. More so, it saves time and money that would have been used to make single agreements for all projects.

JOC is operated under several rules that should be followed closely. This makes it very easy to execute the work at hand because the project will be predictable. The contractor and owner of the project will meet to assess the scope of work and set a time-line then agree on the price.

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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