Part 2 – Commercial Painting Budgets: Budgeting For Commercial Painting Projects

November 6, 2008

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2. Changing the Contracting Process

As a commercial painting budget solution, changing the contracting process may seem like using a sledgehammer to crack a walnut. However, the savings from a new way of administering contracts can be significant, especially if your facility does a lot of outsourcing.

Many large organizations adapt a job order contracting system (JOC ) to handle their contracting process. A JOC system is a type of indefinite demand and indefinite quantity contracting system which relies of pre-defined base prices for services. Contractors bid by multiplying the base prices by a selected co-efficient.

JOC systems are often used by schools, government agencies and other organizations to streamline their contracting process. The real savings come from reduced advertising costs, reduced administrative needs, and a quicker RFP to finished project time. According to a white paper published by Centennial Contractors Enterprise, Inc., the savings associated with a JOC system can be up to 21 percent of standard costs.

The advantage of a JOC system is that once in place to cover a painting project, the system is equally applicable to virtually every other outsourced aspect of facilities budgeting. However, if you are not currently using a JOC system, you should strongly consider hiring an expert consultant to help you implement the program.

Final Words

Facility budgets are not likely to increase anytime soon, so creative solutions are a must to find room in the budget for commercial painting, construction and maintenance projects. In the end, whether your company chooses purpose driven spending or changing the contracting process, the ability to establish a companywide logical decision-making process and get management buy-in is critical to the company’s success in managing your commercial painting budget.

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