Perhaps the most common existing delivery method is traditional Design-Bid-Build contracting, in which each requirement is translated into detailed specifications and drawings and then put out to bid. The specifications and drawings are usually prepared by an architectural/engineering firm for a fee of about 6-8% of the project cost. The design process is costly and time-consuming, typically taking three months or more to complete a design.

Once the design is completed, it is normally combined with standard "boilerplate" and other contract documents. This bundle of documents, which can be rather large, must be reproduced for each contractor competing for the project. Five hundred dollars of reproduction costs, for each project, is typical. After the bid packages are ready, the project is advertised and bids (or proposals) are solicited. After some predetermined period of time, the solicitation is closed and a contractor is selected. A contract can then be issued and work can be started, which typically comes at a point about six months or more after the requirement was first identified.

For large and complex projects, this lengthy and expensive process can be justified. However, for relatively small and non-complex projects, it is not often justifiable. It represents a severe drain of time and monetary resources for facility owners. Furthermore, this process can be non-responsive to the needs of customers. Customers, who are struggling to optimize their operations, could have to wait six months for a simple remodeling project to start. Facility owners could save tens of thousands of dollars in design fees for simple renovation jobs if a more efficient procurement process could be implemented. The Job Order Contracting (JOC) process is a process developed for such a need.

A JOC system is based on a competitively bid indefinite delivery-indefinite quantity (IDIQ) contract between a facility owner and a construction contractor. The contract typically has a base year with 2 to 4 option years. The contract sets parameters such as the types of work that can be done, location of work, design criteria, and maximum amount of work to be awarded. The contract also includes a unit price book (UPB) that establishes a unit price to be paid for each of a multitude of construction line items. A typical UPB has over 40,000 line items and covers almost every construction task. Items that are not included in the UPB can be negotiated, priced, and added to the UPB at any time.

Ideally, contractors compete for JOC contracts on the basis of performance as well as price. The contract price is put in terms of a coefficient, which is multiplier that covers the contractor’s overhead and profit as well as any adjustment between the UPB and actual local prices. For example, a coefficient of 1.12 means that 12% is added to the sum of the applicable UPB line items. Once awarded a contract, the JOC contractor normally establishes a permanent office in close proximity to the facility management staff. The contractor’s project manager becomes part of the owner’s facilities management team. The facility owner or manager decides how much work is performed by the JOC contract based on the need and the performance of the contractor. There is a strong incentive for the JOC contractor to impress the facility owner with outstanding service and quality.

Once a JOC contract is in place, facility work requirements can be accomplished very easily and quickly if the constructor is a "performing" JOC contractor. Typically, the facility owner needs to give the contractor a simple description of work to start the process. The contractor’s project manager then arranges for a site visit and prepares a simplified design. Once the design is approved, the contractor and the facility manager prepare cost estimates by compiling the appropriate quantities of necessary UPB line items. Normally, the UPB data is linked with an estimating software system; thus, the estimating process goes very quickly. After the cost estimates are completed, the contractor and user negotiate to resolve differences in line items and/or quantities. Once a price is agreed upon, a job order is issued to the contractor (hence the term "job order contracting") and construction begins. The entire process usually takes anywhere from 20 to 30 days from the time the work was first identified.

• Lessen response time
• Reduce workload on in-house staff
• Enhance quality control
• Lower contract administrative costs
• Reduce construction costs
• Allow more sensible programming of funds and work force
• Reduce backlog of maintenance and repair
• Fast Delivery
• A partnering approach
• Economical delivery cost using line items with unit costs