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.
Usually, this agreement is utilized for projects that have been well defined. Also, recurring jobs are used for this agreement. All jobs that are required to be done quickly also utilize the JOC. All single projects are however not appropriate for this agreement. In case there are other better means or options for completing certain improvements, the JOC should not be an option.
Thus, this agreement is very useful for simple repetitive improvements. For instance, it is appropriate for simple construction projects that are recurring. Also, when the contractors have a JOC, they develop longer relationships with the owner during the period they will be executing their duties. These contractors are usually selected by form of bidding. After the selection, the unit price is proposed and fixed when it is agreed upon.
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.
The reason as to why this JOC is utilized by many people is because it simplifies things dramatically. Therefore, the duties will not be complicated, which will give the contractors an easier time to execute their duties. This is very important to the contractors as they will not have to spend a lot of time on the same thing. More so, simple jobs will be handled easily.
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.
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.
Usually, this agreement is utilized for projects that have been well defined. Also, recurring jobs are used for this agreement. All jobs that are required to be done quickly also utilize the JOC. All single projects are however not appropriate for this agreement. In case there are other better means or options for completing certain improvements, the JOC should not be an option.
Thus, this agreement is very useful for simple repetitive improvements. For instance, it is appropriate for simple construction projects that are recurring. Also, when the contractors have a JOC, they develop longer relationships with the owner during the period they will be executing their duties. These contractors are usually selected by form of bidding. After the selection, the unit price is proposed and fixed when it is agreed upon.
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.
The reason as to why this JOC is utilized by many people is because it simplifies things dramatically. Therefore, the duties will not be complicated, which will give the contractors an easier time to execute their duties. This is very important to the contractors as they will not have to spend a lot of time on the same thing. More so, simple jobs will be handled easily.
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.
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.
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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.
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