Sunday, 6 January 2019

Guidelines For Job Order Contract

By Patricia Richardson


A JOC is normally an agreement for a fixed term. It may also be referred to an agreement of a maximum dollar value. The contractor is selected depending on a competitive bid. The contractor then performs various tasks during the term of the job order contract. There are strict requirement for the procurement of this type of agreement. This is an agreement and not a purchase order. Failure to follow the requirements or the set code may lead to penalties. The following are some of the guidelines for this kind of 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.

The JOC term is normally one year after which the agreement can be renewed or terminated, whichever comes first. Usually, the two options are granted descriptively after the expiration of the previous contract. Once the agreement expires, the contractor is the one to decide whether to renew or terminate the contract. The owner also has the mandate to renew or terminate the agreement.

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.

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.

Therefore, it is essential to have a JOC if you have a construction project that is running. This will put everything in order and help you to easily control the project. Therefore, select the most capable contractor and come up with the best way to handle the tasks and complete them in time.




About the Author:



No comments:

Post a Comment