Moderator Robert Gair Principal, RSMeans Business Solutions 20 +years of construction industry experience in cost mode

2. Moderator Robert Gair • Principal, RSMeans Business Solutions • 20 +years of construction industry experience in cost modeling and job order contracting • Provides property management solutions to federal agencies such as the Department of Energy, Department of Labor, and State Department • 2009 Industry Chair for the Center for Job Order Contracting Excellence 2

3. Before We Begin… • Technical issues • Try “F5” on your keyboard • Click the “HELP!” button for FAQ’s • Submit a question • Q&A Session • To send in questions, enter your text in the “Ask a question” box and click “Submit” • Speakers will answer as many questions as they can in the allotted time • Enlarge Slides • Click “Enlarge Slides” to view an expanded presentation screen • Presentations • Click the “Download Slides” button to download a PDF 3

4. Speaker Allen Henderson Consultant, Author, Former Facility Manager Texas State University • 35 years of construction industry experience • 25 years at Texas State University-San Marcos • Author of Job Order Contracting--Expediting Construction Project Delivery • Board member for the Center for Job Order Contracting Excellence 4

5. JOC—The Tool of Choice--by Allen L. Henderson • Interior Building Renovations • Exterior Building Rehab • Door Replacement • Window Replacement • Roofing Replacement • Hardscape & Landscape • Demolition and Environmental • Code & Regulatory Modifications • Mechanical, Plumbing, & Electrical Upgrades • Total Renovation • Routine Facility Maintenance & Emergency Work *Before using JOC, facility owners should review applicable state and local laws in their area to determine if there are any restrictions against its use. 5

6. What’s Different with JOC? • JOC allows on-going, or IDIQ construction services---not a project-specific delivery method. • JOC Contractors have an incentive to provide good performance to Owners. 6

7. General Observations • If new to JOC, start small. • Designate a JOC Contract Manager. • Good JOC contractors are service-oriented. • Quick response to owner requests • Submit sufficiently accurate Job Oder Proposals • Use local businesses • Professional quality workmanship • Change orders are rare • Meet project budget and timelines • Become familiar with Owner’s need and expectations. 7

8. JOC is Easy! 8

9. General Observations • JOC Relationships • JOC mandates a relationship of some sort. • JOC contractors should submit sufficiently accurate Job Oder Proposals. • Have a thorough RFP evaluation process. • Be cautious of exceptions to any pricing restrictions. 9

10. About JOC Contracts • ALL JOC CONTRACTS ARE NOT THE SAME! • Some have no pricing restrictions at all = lower price coefficient • Some have pricing restrictions = higher coefficient • Pricing is more predictable with restrictions 10

11. Have a Start-up Meeting! • Address requirements and processes • Payment and invoicing, HUB goals, permitting • How can green materials and sustainable design be used? • Job Order review and approval process • Contractor reporting and project scheduling • Contractor response and project supervision expectations • Jobsite inspections • Any other issues of relevance 11

12. Partnering • If the contractor succeeds, so does the owner! • Successful relationships require consistently open and honest communication. 12

13. Ways for Owner to Partner • Examine internal project planning process. • Examine Job Order review and award process. • Generate list of commonly used materials and equipment. • Bring contractor in early in design phase. • Provide access to all applicable record documents. • Accommodate Contractor access to proposed project site. • Assist with permitting process, if needed. • Discuss access and staging issues---identify needed equipment. • Address issues to minimize impact on existing operations. 13

14. JO Proposal Review Tips • JO proposal reviewers should be experienced and well trained in general construction. • Verify pricing using the same software as the contractor. • Reviewers should be familiar with project scope. • OK if more than one reviewer. • In-house tradesmen can assist in review process. Have the JOC tool within reach and Good Luck! 14

15. Speaker John Murray State of Missouri Division of Facilities Management • Vice Chairman of the Planning & Zoning Committee for the Village of Wardsville, Mo • AIA-CEC-MO Liaison Committee member 15

16. STATE OF MISSOURI • JOB ORDER CONTRACT • 2005 Statute limited up to a maximum of $100,000 per project • 2007 Statute changed to maximum $300,000 per project • Small, relatively simple projects • Design limited to DD 16

17. HISTORY • FIRST CONTRACT • 4/7/2006 to 4/22/2008 • 34 Projects • $3,039,593.00 • SECOND CONTRACT • 4/22/2008 to 4/2/2010 • 86 Projects • $5,012,086.00 • CURRENT CONTRACT • 4/1/2010 TO 3/31/2011 • 1 year contract • 4 – One Year Renewals Available 17

18. CONTRACT BASIS • Originally R.S. Means Cost Works • Currently R.S. Means JOC Works Pro • Project Cost Development • Owner Scope & Design • Walk Through • Contractor Proposal • Owner Review • Negotiation • Notice to Proceed (NTP) • Performance of Work 18

19. JOC CONTRACT SUCCESS • RELATIONSHIPS • RESPONSIVENESS • TRUST 19

20. Speaker Mark Bailey President & CEO, Centennial Contractors and Enterprise, Inc. • Provides vision and direction to employees in over 40 offices across the country, focusing on Job Order Contracting and IDIQ contracts • 27 years of construction industry experience, ranging from superintendent and estimator to heavy civil contractor and project manager • Authored an article about Job Order Contracting for ENR • A member of the National and Virginia Chapter of Associated Builders and Contractors, Society of American Military Engineers, Design-Build Institute of America Center for Job Order Contracting Excellence 20

21. JOC: A Contractor’s Perspective • JOC Requires a Different Contractor Skillset and Mindset • Shares Collaborative Spirit and Process with Integrated Project Delivery, Design-Build, and CM At-Risk • Emphasizes Partnering & Teamwork • Focus on a Long-term Relationship that is Responsive to Owner Needs • Builds Quality Results & Improved Performance Over Time “The hardest thing for your competitors to match is the most unique aspect of your organization - the MINDS and HEARTS of your employees” - Lee J. Colan, Passionate Performance 21

22. Keys for a Successful JOC Program • Ensure that JOC is the right fit for your organization • Ensure Adequate Program Volume • Consider your JOC bandwidth and “JOCable” projects • Select the Right Contractor - Best Value or Qualifications-Based Process “The beginning is half of every action.” - Proverb 22

23. Where JOC Fits: Consider Bandwidth 23

24. Successful JOC Program Startup • A Higher Level of Investment in the Working Relationship • Alignment Between Owner and JOC Contractor • Matching Personalities—What Does Our Client Look Like? • Clear Understanding Of Customer Processes, Expectations, Subcontracting Goals, Sustainability Goals, Paperwork Requirements, etc. • Everyone In Client Chain Understanding The Value of JOC “A working relationship takes work.” – John Hanley 24

25. JOC and Sustainability • Greening Your Existing Building Stock • Collaborative JOC process and pricing allow for a careful analysis of cost/benefit • Support of LEED EB • An alternative to Energy Performance Contracting that gives the owner more control • Designing The JOC Program Around Your Sustainability Goals Are you green and growing or ripe and rotting? -Ray Kroc 25

26. JOC and Stimulus • JOC used by many federal agencies to expedite ARRA funds • Transparency and Accountability In Pricing Structure • Contractor Familiarity with Paperwork Requirements • Utilization of Small Local Businesses Meets Stimulus Goals • JOC Gives Owners a Shovel Readiness Tool to Maximize Funding from any source “The recession is lingering, and so is the unspent stimulus money that was meant to help end it . . . Local governments lacked the staff to make applications or handle the money they received. And federal money comes with strings attached..” – New York Times article, August 13, 2010 26

27. JOC: Expediting Preconstruction 27

28. The Added Value of JOC • Flexibility—matching project scope/goals to available budgets • Targeted Design: The Right Level Of Design For The Project Needs • Helping Owners Think, Plan & Find Solutions • Building Safety Into the Project • Making Sure The Local Small Business Community Benefits from Project Dollars • Creating a financial Incentive for the Contractor that aligns with the owner’s goals for contractor performance Happy Customer = More Work “The cynic knows the price of everything and the value of nothing.” - Oscar Wilde 28

29. Questions&Answers 29