Competitive Construction Market for Job Order Contracting

On Tuesday, March 24, 2009, the University of Washington received qualifications from contractors interested in being considered for the University's new Job Order Contract. Two years ago, only four contractors submitted qualifications. This year, eleven contractors submitted, a sign that the construction market is continuing to be tight.

The Job Order Contract will be for two years with the possibility of extending it for one additional year.

Job Order Contracting, authorized in Washington State under chapter 39.10 RCW, is an indefinite quantity, indefinite delivery type of public work contract in which the contractor bids a coefficient (markup or markdown) of a unit price book (i.e. R.S. Means). The Job Order Contractor is required to subcontract 90% of the work and may only perform 10% of each work order with their own forces. Each work order (project) is limited to $300,000 and the maximum dollar value of work orders in any contract year is limited to $4 million.

If you have any questions about Job Order Contracting or would like training on this alternative public works delivery method, please contact me. I will be speaking briefly on March 31, 2009 at the Regional Contracting Forum on Job Order Contracting.