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.
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.
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.
Since this agreement follows a set of rules, it will make things easier as they will be more predictable. The owner and the contractor will hold an initial meeting and evaluate all the work that needs to be done. Once the scope of work has been assessed and the time-line has been set, a price proposal is made.
It is therefore critical to use a JOC in case you have construction work. This is because everything will be in control and will be completed within the agreed upon time. Therefore, if you are the owner, make sure you have negotiated the terms with the contractor.
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.
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.
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.
Since this agreement follows a set of rules, it will make things easier as they will be more predictable. The owner and the contractor will hold an initial meeting and evaluate all the work that needs to be done. Once the scope of work has been assessed and the time-line has been set, a price proposal is made.
It is therefore critical to use a JOC in case you have construction work. This is because everything will be in control and will be completed within the agreed upon time. Therefore, if you are the owner, make sure you have negotiated the terms with the contractor.
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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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