Cost Performance of Job Order Contracting (JOC) Applied to Wastewater Pipeline Engineering and Construction Projects

A significant portion of the wastewater lines in the United States are nearing the end of their useful life. A substantial reinvestment is needed in the upcoming decades to replace or rehabilitate the wastewater infrastructure. Currently the traditional method for delivering wastewater pipeline engineering and construction projects is design-bid-build (DBB). The traditional DBB delivery system is a sequential low-integration process and can lead to inefficiencies and adverse relationships between stakeholders. Alternative project delivery methods (APDM) such as job order contracting (JOC) have been introduced to increase stakeholder integration and ultimately enhance project performance. APDM cost performance impacts have been studied in the horizontal and vertical construction industries. However, the cost performance of JOC projects in the pipeline engineering and construction industry has not been quantitatively studied. This paper fills this gap by providing a study on the cost performance of 25 JOC wastewater pipeline projects delivered in Phoenix, AZ. A thorough literature review led to the development of a data collection survey used to gather quantitative cost performance data from completed wastewater pipeline projects. The data shows that the City of Phoenix uses JOC primarily for wastewater projects under $1 million, with the majority being between $500,000 and $750,000. The major contribution of this study is demonstrating the ability of JOC to offer cost certainty when delivering wastewater pipeline projects, with an average cost growth of-4.6%. The results can aid decision makers when choosing the appropriate delivery method for their wastewater pipeline projects.