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JOC Best Practices: Use an Accurate Unit Price Book

About this video: See all of Gordian’s Job Order Contracting Best Practices: https://www.gordian.com/landing-pages... More Job Order Contracting Best Practices Videos: Train Facility Owners and Contractors    • JOC Best Practices: Train Facility Ow...   Select the Right Construction Projects    • JOC Best Practices: Select the Right ...   Write a Detailed Scope of Work    • JOC Best Practice: Write a Detailed S...   Recruit High-Quality Contractors    • JOC Best Practices: Recruit High-Qual...   The Importance of an Accurate Unit Price Book An accurate unit price book is the cornerstone of any successful Job Order Contracting program because it provides the basis for pricing the program’s every project. Gordian Job Order Contracting programs include a custom unit price book called a Construction Task Catalog© that contains local material, labor and equipment costs for the kinds of construction work an owner expects to complete. A comprehensive and accurate unit price book allows the parties to focus on completing projects instead of negotiating prices. Conversely, generalized or generic task descriptions, inaccurate pricing and missing tasks put a strain on the owner-contractor relationship as the parties engage in contentious negotiations instead of collaborating in pursuit of the same goal: a successful construction project. Why a Localized Unit Price Book? A unit price book containing national average prices is a detriment to a Job Order Contracting program. In some parts of the U.S., the national average is higher than the local market; in other parts of the country, the opposite is true. Depending on the economic situation in your local market, using national average pricing means the project owners pays too much or the contractor is paid too little. On the other hand, a unit price book containing local costs ensures the project owner does not overpay for work and the contractor is not underpaid for work. The Importance of a Customized Unit Price Book Each Job Order Contracting program serves different needs. A department of transportation, for example, is going to complete far different projects than a public school district. A custom unit price book, containing only the relevant costs for your Job Order Contracting program, creates a more efficient process for project owners and for contractors.