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New Contracts Prove Reliance On Performance Based Contracting Continues To Grow
New Contracts Prove Reliance On Performance Based Contracting Continues To Grow
Centennial awarded contracts from San Diego State University and San Diego Airport Authority
San Diego, CA – May 10, 2006 – Centennial Contractors Enterprises, Inc. has been awarded two major contracts in the San Diego area that represent a growing trend in the construction industry, both in California and across the country, toward using Job Order Contracting (JOC) and similar performance based contracting methods
Centennial’s first non-federal JOC contract in California was awarded by San Diego State University and is worth up to $3 million annually. The project represents the continued growth of Centennial’s into non-Federal markets. Founded in 1897, San Diego State University is the oldest and largest higher education institution in the San Diego region and is in the top seven percent of higher education research institutions in the United States.
Centennial has also been awarded a performance based contract for renovation and rehabilitation work at San Diego International Airport. San Diego International Airport is the busiest single-runway airport in the United States, serving more than 17 million passengers every year. The airport has three terminals with more than 30 food and beverage establishments. San Diego International Airport contributes nearly $5 billion annually to the regional economy.
Job Order Contracting is a competitively bid fixed-price indefinite quantity, long-term contract for multiple construction projects traditionally focused on renovation, repair and remodeling, delivered on an on-call basis through delivery or work orders. Traditionally a coefficient is negotiated (taking into account regional needs and differences, specific client requirements, etc.) and is applied to a standard Unit Price Book.
“Performance based construction, specifically Job Order Contracting, is really a novel way to enhance effectiveness in the construction business,” says Ted Osborne, vice president of Centennial’s Southwest region, based in San Diego. "We are focused on long term results for our clients, helping them reduce the stress and on-going demands around many diverse and challenging renovation, repair and construction projects."
Once a competitively bid and awarded JOC program is in place, there is a reduction in the time and costs associated with pre-construction phases. Another benefit is the majority of the subcontracting work to local small businesses, allowing the funds to stay in the local economy. For example, on Centennial’s latest job with the US Navy, 90 percent of the subcontracting work was given to small businesses in the San Diego region, many of which were minority or women-owned.
Osborne continues, "We are excited at the opportunities we have with existing, new and potential clients in California and neighboring states. We see increased facilities managers and owners demands for improved responsiveness, creative solutions and building relationships that withstand the test of time. These recent awards are indicators that there is need for new tools in a facilities support teams tool box to help everyone succeed – including the end users of any of these locations – whether a business traveler or a university student. Centennial is here to help the San Diego community for the long-term, we are part of the community."
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About
Centennial Contractors Enterprises, Inc.: For more than 15 years, Centennial Contractors Enterprises, Inc., has been a leader in construction services supporting government, educational and business facilities and infrastructures, with construction projects focused on renovation, rehabilitation and repair. To date, Centennial has supported over $1.5 billion in project solutions for its diverse customer base. Headquartered in Northern Virginia, the firm has over 45 offices nationwide. For more information go to www.cce-inc.com or contact David Carrithers, vice president of marketing, at 703-287-3042 or contact@cce-inc.com.
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