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(PM-1921) Analyzing the Economic Impact of Job Order Contracting

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Primary Author: Dr Dean T Kashiwagi PE
Co-Author(s): Mr Jacob Kashiwagi; Mr Kenneth T Sullivan

Audience Focus: Intermediate
Application Type: Research
Venue: 2015 AACE International Annual Meeting, Las Vegas, NV, USA

Abstract: The Performance Based Studies Research Studies Group (PBSRG) at Arizona State University (ASU) has been studying the cause of increased cost and time in construction and other projects for the last 20 years. Two studies with a group of owners in the state of Minnesota and the US Army Medical Command identified the client/buyer as the largest source of project deviations. This was confirmed by other tests delivering services conducted over the past 20 years at Arizona State University. PBSRG's latest research effort is to identify the potential economic impact of a delivery process on construction called the Job Order Contracting (JOC) process. JOC's strength is that it minimizes the need for the owner to manage, direct and control the contractors through a lengthy traditional process of design, bid, and award of a construction contract. The paper looks at issues in delivering services, and then uses logic and dominant information instead of the traditional economic analysis to identify if there is adequate justification to do a large economic analysis study of the Job Order Contracting process.