It may seem like overkill to resolve painting budget issues by changing the contracting process. If your facility utilizes outsourcing to a great extent, the practice of administering contracts utilizing this new method can save you money.
Job order contracting (JOC) systems are used by a number of large corporations to handle the process of contracting. Defined as an indefinite demand/quantity system, JOC utilizes pre-set base prices to determine cost of service. The price is settled on by a process of multiplying the base cost by a co-efficient that is pre-selected.
The contracting process can be streamlined by using a JOC system. This is common among many organizations, including government agencies and schools. Here is where you will see real savings: Faster RFP finished product time, lowered administrative needs, a reduction in advertising expenses. Centennial Contractors Enterprise, Inc. published a hard-copy report that indicated that using JOC system could save as much as 21% in ordinary costs.
After a JOC system has been put in place, it can be applied to other outsourced services. It is not limited to painting contracts. Nonetheless, you should think about hiring a JOC expert to help you implement this process if you are not already using it.
Because it is unlikely that the budgets allowed for facility maintenance will increase in the near future, it is important to think outside the box when considering maintenance, construction, and painting projects. At the end of the day, your company may choose to change the contracting process or go with purpose driven spending. Either way, it is important to establish a uniform decision across all company settings and get management approval. This will insure that your company will be able to handle its commercial painting budget effectively.
