We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Business

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Is Job Order Contracting?

Malcolm Tatum
By
Updated: May 17, 2024
Views: 4,283
Share

Job order contracting (JOC) is a strategy that makes it possible for a business or facility to create a contractual arrangement that addresses a multiplicity of functions through the establishment of a single agreement rather than requiring several different contract to manage those same tasks. While the exact structure of this type of contracting will vary and is often influenced by governmental regulations that apply in the jurisdiction where the contract is established. This approach can save a great deal of time and money.

One of the more common examples of job order contracting is seen in the construction industry. Here, the goal is to include a number of different projects under the auspices of a single agreement. The end result is that a great deal of time is saved, in that a single agreement is negotiated rather than dealing with ongoing negotiations for individual projects. By using this strategy, it is often possible to trim costs associated with all the projects involved, negotiating terms that take into consideration the overall business volume that is covered in the terms and conditions of the contract.

Along with simplifying the process of contracting tasks, job order contracting also often makes it possible to cultivate long-term relationships that pave the way for additional benefits in the future. Both parties may find the effort helps to create a team atmosphere that aids in completing tasks ahead of schedule or under budget, a set of circumstances that may benefit everyone involved. The combination of lower legal fees, reduced operational costs associated with the tasks covered in the contract, and the fact that projects are often completed quickly and efficiently make this approach well worth consideration.

As with any type of contracting situation, clients have the opportunity to review the work completed under the terms of the job order contracting. The terms are usually structured to protect the interests of both the contractors and the client, while also committing all parties to certain responsibilities within the terms of the agreement. For example, a properly structured JOC provides clients with the right to halt a given task if it is not being performed to specifications, while that same agreement aids in protecting contractors from incurring losses due to changes in the wants of the client that are above and beyond the terms of the agreement. At its best, job order contracting shortens the contracting process without sacrificing quality and makes it possible to begin work on key projects sooner rather than later.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.

Editors' Picks

Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
Share
https://www.wisegeek.net/what-is-job-order-contracting.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.