Things You Should Understand About Job Order Contract
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 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.
Therefore, creating a single agreement that will utilize JOC is advantageous. Thus, a single agreement will cover all the processes that are needed to complete the construction project. As mentioned above, this will dramatically reduce the amount of time in which the project will be completed. This also cuts down overall costs for the project.
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.
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 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.
Therefore, creating a single agreement that will utilize JOC is advantageous. Thus, a single agreement will cover all the processes that are needed to complete the construction project. As mentioned above, this will dramatically reduce the amount of time in which the project will be completed. This also cuts down overall costs for the project.
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.
About the Author:
We have step by step instructions about how you can sign up for the job order contract. All the information you need appears right here on http://www.4bt.us/job-order-contract-guidelines.
You are receiving this because you signed up for it on 2011-10-03 from IP 203.109.66.181
To fine-tune your selection of which articles to receive, just login here
using your username:
To unsubscribe please use the following link:
Unsubscribe
No comments:
Post a Comment