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In episode 73 of The Subcontractors Blueprint podcast, host Jacob Austin addresses the topic of amending standard forms of contract in the construction industry. Jacob explains why these amendments are often necessary, such as adapting to new regulations or project-specific needs, but also highlights the potential risks and misunderstandings they can cause. He provides practical strategies for subcontractors, including early review of amendments, proactive negotiation, thorough documentation, and seeking professional advice. Jacob aims to empower subcontractors with the knowledge and tools to navigate contract modifications confidently, ensuring their interests are protected.
KEY TAKEAWAYS:
Reasons for contract amendments and their necessity. Potential pitfalls and risks associated with contract modifications. Importance of understanding the implications of amendments. Real-world examples illustrating the consequences of poorly drafted amendments. Importance of documentation and record-keeping during negotiations.BEST MOMENTS:
"Amendments can be double-edged swords; on one side, well-drafted revisions help ensure compliance with new regulations, but on the other, they can be misused to push maximum risk onto someone else's shoulders."
"Nobody likes doing extra paperwork, but getting things defined at the start of the job and setting clear expectations is the best way to procure a job."
"I want you as a subcontractor to be able to enter into agreements with your eyes open to what goes on."
"You don't want a situation where you started work and now the contract is saying, "Hold on, I can't pay you because you haven't signed my contract."
"Understanding what amendments are intended to do and how they can be misused gives you the ability to push back where it's appropriate and approach amendments with cautious optimism."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 72 of The Subcontractors Blueprint podcast, host Jacob Austin provides an in-depth analysis of the JCT Standard Building Subcontract 2016. Aimed at construction business owners, the episode educates subcontractors on the critical components of contract documents. Jacob emphasises the importance of understanding these documents to minimise the risk you take on as a subcontractor. He covers key elements such as contract structure, clauses, and requirements, while also addressing the significance of accurate contract drawings and specifications. By demystifying these aspects, Jacob equips subcontractors with the knowledge to avoid disputes and ensure successful project execution.
KEY TAKEAWAYS:
Importance of understanding contract documents for subcontractors. The significance of accurate contract drawings and specifications. Role of contractor design portions and alignment with subcontractor proposals. Importance of health and safety documents in construction contracts. Strategies for interpreting contract terms and addressing discrepancies.BEST MOMENTS:
"It's like having a map in a maze. You still have to do the walking, but at least you won't bang your head into the same wall ten times before finding the exit."
"Get the contract right, get it signed, and get everyone clear before any heavy lifting begins."
"Clarity is key. And if you don't know what something means, get your RFI schedule going and ask questions about it."
"Clear documentation equals fewer disputes when everyone knows what they're supposed to do, when to do it, and how they get paid."
"Contracts shouldn't be something to fear. Think of them as a framework that, if used correctly, they protect all parties involved."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 71 of The Subcontractors Blueprint podcast, host Jacob Austin addresses the pressing economic challenges faced by subcontractors, including rising material costs, labor shortages, and inflation. Jacob offers actionable strategies to ensure profitability and business growth despite these adversities. Key topics include effective cash flow management, strategic pricing, client base diversification, and efficient material and labor cost management. Emphasising the importance of strong contractor relationships, Jacob provides practical advice to help subcontractors navigate the current economic landscape and thrive. This episode is a must-listen for construction business owners seeking to bolster their operations during uncertain times.
KEY TAKEAWAYS:
Strategies for subcontractors to survive in an uncertain economic climate. Importance of cash flow management for profitability. Pricing strategies to balance profitability and competitiveness. Building strong relationships with contractors through communication. Proactive communication and feedback mechanisms with contractors.BEST MOMENTS:
"You can have a full order book, and you can still fail if cash flow isn't your best friend."
"Remembering to obtain the paperwork necessary to get your hands on retention at the right time is an easy but often overlooked issue."
"Pricing in uncertain economic climates is a bit of a delicate balance."
"Diversify your client base to mitigate risk in an unstable economy."
"Tough times don't last, but tough subcontractors do."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 70 of The Subcontractors Blueprint podcast, host Jacob Austin discusses the topic of retentions in the construction industry. He explains that retentions are a financial safeguard for clients, ensuring project quality and timely defect rectification. Jacob outlines the mechanics of retentions, highlighting challenges such as delayed payments and unfair terms. He emphasises the importance of understanding contractual terms, documenting work, and maintaining communication with contractors. By proactively managing retention claims, subcontractors can secure their payments and foster better relationships. Jacob's insights aim to help subcontractors navigate the complexities of retentions effectively.
KEY TAKEAWAYS:
Definition and purpose of retentions in the construction industry. Mechanics of how retentions are applied and released. Challenges faced by subcontractors regarding delayed payments and unfair terms. Importance of understanding contractual terms related to retentions. Strategies for proactive management of retention claims.BEST MOMENTS:
"Retentions are a form of a financial safety net for clients. They're there to offer certainty that the works are going to be finished, and they're almost like an insurance for if defects or issues arise after the project is completed."
"There are rules that stipulate how retentions should be dealt with, which fall under part of the Construction Act. And one of the most important provisions of that is that payment to subcontractors cannot be tied to events in the main contract."
"Retentions are often misunderstood or even resented by subcontractors. After all, from one perspective, it's money that you've earned that's being withheld, and it can be seen as outdated or punitive."
"The key to getting your hands on them is to do what you're supposed to do, workwise, and be proactive about chasing up the release."
"Instead of pricing retentions, focus on ensuring your contract terms are fair and enforceable, and do your bit to get your hands on the money."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 69 of The Subcontractors Blueprint podcast, host Jacob Austin talks about the transformative role of Building Information Modelling (BIM) in the construction industry, particularly from the perspective of quantity surveyors. Jacob explains how BIM enhances efficiency, collaboration, and accuracy in measurements and cost estimation. He emphasises the importance of adopting BIM to improve information flow, decision-making, and overall project outcomes. By consolidating project data into a single digital model, BIM fosters better coordination among stakeholders and reduces errors. Jacob encourages listeners to embrace BIM for its potential to revolutionise traditional construction practices and improve project efficiency.
KEY TAKEAWAYS:
Importance of Building Information Modelling (BIM) in the construction industry. Perspective of quantity surveyors on measurements and estimating. Transition from traditional methods to digital models for cost estimation. Support for facilities management through comprehensive digital models. Challenges in implementing BIM, including cultural shifts and technology barriers.BEST MOMENTS:
"BIM is about delivering construction projects more efficiently, doing what we said we would do in the way we said we do it, and hopefully by the time we said we'd do it too."
"BIM helps us to build the job before we build it, means we can get it right on the first day on the first try."
"This collaborative approach reduces inefficiencies, eliminates unnecessary waste, and improves the quality of the delivered asset or building."
"BIM can also help quantity surveyors stay aligned with design changes, ensuring that stakeholders are working with the most current information."
"Collaboration is key; BIM thrives in a collaborative environment and quantity surveyors, designers, subcontractors, contractors must work together to develop the model that works for everybody's needs."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 68 of The Subcontractors Blueprint podcast, host Jacob Austin provides construction business owners with essential strategies manage sub-contracting their own work. Key topics include contractual obligations, quality control, payment structures, communication, and risk management. Jacob emphasises the importance of clear communication, robust contractual protections, and diligent oversight to maintain compliance with main contractor expectations.
KEY TAKEAWAYS:
Establishing effective communication channels between main contractors and sub-subcontractors. Strategies for ensuring quality control and compliance with industry standards. Managing materials and payment practicalities, including retention of title clauses and avoiding factoring. The significance of regular check-ins and open dialogue to maintain project alignment. Managing project timelines and addressing potential delays with clear clauses and penalties.BEST MOMENTS:
"When you, as a subcontractor working for a main contractor, decide to engage a sub subcontractor, it's essential to ensure that relevant terms from the main contract are passed on downstream."
"You also need to transfer program requirements, but also be mindful that in construction, it's common to see program requirements shift due to unforeseen circumstances."
"Moving on to payment structures. One critical factor in managing your sub subcontractors is setting fair but protective payment arrangements to maintain cash flow."
"One thing that you have to be really clear about, if you're managing sub subcontractors, is maintaining a clear communication boundary with the main contractor."
"Consider developing a quality checklist tailored to the specifics of the sub subcontract tasks and sharing it with them as part of the inquiry."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 67 of The Subcontractors Blueprint podcast, host Jacob Austin explores the crucial topic of bonds and guarantees in construction contracts. Tailored for subcontractors, Jacob explains the different types of bonds—default and on-demand—their purposes, and financial implications. He emphasises the importance of understanding bonding capacity and offers practical tips for managing bonds effectively. Jacob also discusses the significance of termination dates and parent company guarantees. This episode aims to educate subcontractors on navigating the complexities of bonds and guarantees, ensuring they protect their financial interests and thrive in the construction industry.
KEY TAKEAWAYS
Definition and function of bonds as financial instruments in the construction industry. Financial security and risk management implications of bonds for subcontractors. Process of obtaining bonds through insurance companies and banks. Financial implications and potential costs associated with bonds. Practical tips for managing bonds and guarantees effectively.BEST MOMENTS:
"Many subcontractors, in fact, might be more financially stable than the contractor themselves. Who's asking for that bond? And that's where understanding your options and rights around bonds can save you from taking on undue risk.
"A default bond, which is sometimes called a conditional bond, is a true performance bond. It's only triggered if the subcontractor, let's say you, fails to meet your contractual obligations."
"On demand bonds are typically more expensive as well due to the higher level of risk. Your bank might recommend one, but it's worth noting that this is the most onerous form of bond."
"Obtaining a bond can tie up a subcontractors financial resources, and that potentially makes it harder for them to fulfil the contract in the first place."
"Bonds can be modified to meet the needs of both parties, so don't hesitate to request changes if you feel certain terms could expose you to undue risk."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 66 of The Subcontractors Blueprint podcast, host Jacob Austin speaks on the critical aspects of construction law, emphasising the significance of contracts for subcontractors. He provides practical advice on protecting your business from unwanted contractual risks by understanding contractual rights and obligations. Jacob highlights the importance of written contracts, outlines key elements that make them legally binding, and discusses various contract types. He also covers relevant UK statutes, common pitfalls to avoid, and effective dispute resolution methods. This episode serves as an invaluable resource for subcontractors navigating the complexities of construction contract law.
KEY TAKEAWAYS:
Key elements that make a contract legally binding. Relevant statutes influencing construction contract law in the UK. Differences between express and implied terms in contracts Common pitfalls subcontractors should avoid in contract agreements. Importance of maintaining accurate documentation for protection.BEST MOMENTS:
"There are three key elements which are the offer and acceptance, the consideration, and the intention to create legal relations."
"Written contracts have the advantage of clarity. They lay out terms like payment schedules, timelines, and specific deliverables, which leaves less room for misinterpretation."
"Simple contracts can be made in writing, orally, or through conduct, and they're typically enforceable for up to six years."
"Express terms are specifically stated, and express terms may include further terms by reference."
"Keeping documentation is one of the best tools you have for protecting yourself in a subcontract."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 65 of The Subcontractors Blueprint podcast, host Jacob Austin covers the complexities of global claims in construction disputes. He explains what global claims are, their associated risks, and the importance of maintaining detailed records. Jacob provides strategies for both making and defending against these claims, emphasising the need for clear causation and accurate documentation. He also highlights key legal precedents and offers practical advice for subcontractors to protect their interests. This episode aims to equip construction business owners with the knowledge to navigate global claims effectively, ensuring profitability and business growth.
KEY TAKEAWAYS:
Definition and explanation of global claims in construction disputes. Importance of maintaining detailed records for claims. Legal principles and burden of proof in global claims. Strategies for making and defending against global claims. The role of causation and dominant causes in claims.BEST MOMENTS:
"A global claim lumps everything together and argues that the overall cost was caused by a combination of multiple events."
"The burden of proof is still on the claimant to show that the events they're claiming for actually caused the loss."
"A global claim doesn't give the other party a clear picture of what they're being held responsible for."
"The best way to avoid a global claim is to keep detailed records throughout the project."
"If you can break the chain of causation, the claim may fail altogether or at least be heavily reduced."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 64 of The Subcontractors Blueprint podcast, host Jacob Austin explores the vital role of mediation in the construction industry, particularly for subcontractors. He outlines the mediation process, emphasising its benefits over traditional litigation, such as being less adversarial, faster, and more cost-effective. Key terms like BATNA, mediator, and settlement agreement are explained, alongside the mediator's role and the importance of confidentiality. Jacob also discusses the costs involved and potential outcomes of mediation, providing subcontractors with practical insights to handle disputes efficiently and maintain business health.
KEY TAKEAWAYS:
Overview of the mediation process and its advantages over litigation. Stages of the mediation process (introduction, information exchange, option generation, negotiation, conclusion). Confidentiality aspects of mediation and its implications for parties involved. Cost considerations for mediation, including fixed fees and potential savings compared to litigation. Potential outcomes of mediation, including settlement agreements and non-binding conclusions.BEST MOMENTS:
"Mediation works by bringing the disputing parties together with a neutral mediator who helps to facilitate communication and negotiation. The goal is for both parties to reach a mutually acceptable agreement without the need for a formal court hearing or proceedings."
"And here's the best part: nothing is binding until both parties agree and sign a written settlement. That means that you can explore solutions and take risks during the process, without the fear of being locked into something that you don't agree with."
"The role of the mediator isn't to decide what's right or wrong, or who's right or wrong, but to guide the process and help the parties reach a resolution in construction disputes."
"Think of the mediator as a master navigator. They aren't there to make decisions and tell you where you're going to end up, but they are there to help both the parties explore all the possible decisions and solutions, and guide them along the path that they choose."
"Mediation offers you a meaningful way to settle your construction disputes whilst avoiding the adversarial and lengthy procedures of litigation, and is even quicker and more cost effective than the construction industry's preferred method of dispute resolution adjudication."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 63 of The Subcontractors Blueprint podcast, host Jacob Austin delves into the crucial topic of completion in subcontracting. He explains the significance of understanding completion milestones, such as practical and final completion, and their impact on subcontractors' obligations, payments, and liabilities. Jacob emphasises the need for effective planning, clear communication, and well-defined contractual terms to avoid disputes and ensure profitability. He also highlights the importance of issuing practical completion notices and staying proactive during the defects liability period. This episode offers valuable insights to help subcontractors navigate the complexities of the construction industry.
KEY TAKEAWAYS:
Importance of understanding completion milestones in subcontracting. Definitions and implications of practical completion, final completion, and substantial completion. Common causes of delays in construction and the necessity of effective planning. Risks associated with lack of a defined start date in subcontracting agreements. Importance of written notices for declaring practical completion.BEST MOMENTS:
"One thing that I'm sure we can all agree on is that money and time are two of the biggest causes of disputes in construction, and when we're talking about completion, we're really talking about both of these issues at once."
"Delays in construction can, of course, occur for a variety of reasons. This might be poor coordination between subcontractors and the main contractor, unforeseen site conditions, delays in receiving materials, changes in the project design, and unpredictable weather conditions."
"If there's no agreed start date or a clear window for when your works can begin, and by clear I mean quite a narrow window, how are you supposed to claim for an extension of time if delays happen?"
"It's important for you to remember that your contractual obligation is to complete the works within the contractually agreed time frame, not the contractor's ever-shifting program."
"Reaching practical completion signifies a number of key turning points in the contract, including the release of retention monies and the end of your liability for looking after your works on site."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 62 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone covers the topic of day works, offering crucial advice for subcontractors. He emphasises the importance of understanding day work rates, accurately tracking hours and materials, and negotiating rates upfront to avoid disputes. Jacob provides insights on how to account for all associated costs, including supervision, travel, insurance, and equipment. He also highlights the necessity of maintaining detailed records to justify charges.
KEY TAKEAWAYS:
Importance of charging appropriately for incidental work. Components that influence day work rates, including labor, overheads, and profit margins. Common misunderstandings surrounding day works and their pricing. Strategies for documenting day works, including logbooks and photographs. Financial implications of underestimating costs associated with day works.BEST MOMENTS:
“There is a generally well known and well used definition of day works now that was produced by the Building Cost Information Service”
“The RICS or the BCIS regularly maintains and updates day work rates for unskilled labor all the way through to the likes of Master Craftsman.”
“When you then later charge a day work rate, you're expected to charge what is written down in your subcontract. And all of these incidental elements are expected to be included in that rate."
"So part of what you need to do here is to digest that list and work out your typical costs of employing a person on your site, and how much they are going to have to contribute towards all of the on site running costs”
“This can of course save you a lot of hassle down the line over what's done and how much it costs."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 61 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone addresses the critical themes of risk and uncertainty in the construction industry, specifically for subcontractors. He defines risk and uncertainty, emphasising their impact on project management. Jacob categorises uncertainties into four types: certain things, known uncertainties, unknown uncertainties, and unknowable uncertainties. He provides practical strategies for identifying, analysing, and mitigating these risks to ensure profitability and improve cash flow. The episode underscores the importance of proactive risk management, open communication, and continuous learning to navigate the complexities of construction projects effectively.
KEY TAKEAWAYS:
Implications of risk and uncertainty for project management. Strategies for managing known and unknown uncertainties. Importance of proactive risk management and flexibility. Use of PESTEL analysis to identify external risks. Impact of behavioural uncertainty on project dynamics.BEST MOMENTS:
"No matter how well you plan, every project has elements of risk and uncertainty. Some factors are under your control and others aren't. But the key to navigating these murky waters is by understanding how to identify, manage, and mitigate both risk and uncertainty effectively."
"These are the most challenging kinds of uncertainties to deal with because there's no way to predict them or plan for them in advance."
"Your goal with this kind of risk management is to keep the project moving forward, even when things don't go exactly as planned. And remember, risk management is not a one time task. It's an ongoing process."
"One approach would be to set up some kind of early warning system. This might involve regularly checking in with stakeholders, monitoring environmental conditions, speaking to your suppliers regularly, or keeping up with the latest news that could impact your project."
"Building that culture of trust and communication and transparency can help prevent problems before they escalate into something far more serious."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 60 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone discusses the critical issue of liquidated damages for construction subcontractors. He explains that liquidated damages are pre-agreed financial penalties for project delays, which can significantly impact a subcontractor's finances. Jacob offers practical advice on understanding contracts, securing extensions of time, and documenting delays to mitigate these risks. He emphasises the importance of proactive communication and thorough record-keeping to protect against unexpected liabilities. This episode provides valuable insights to help subcontractors maintain profitability and avoid financial pitfalls in their projects.
KEY TAKEAWAYS:
Definition and explanation of liquidated damages in construction contracts. Financial impact of liquidated damages on subcontractors. Distinction between liquidated damages and general damages. Necessity of thorough documentation of delays and communication with main contractors. Real-life scenarios illustrating the implications of liquidated damages.BEST MOMENTS:
"Most standard forms of subcontract don't contain liquidated damages clauses."
"One of the best ways to do this is by securing extensions of time. If the delay isn't your fault, maybe it's down to bad weather, design changes, delays caused by other trades. You need to request an extension of time for that as soon as possible."
"If your delay causes the main contractor to be late, you're not just responsible for the liquidated damages that they owe the employer, but also the contractor's own costs for being on site longer and further costs for dealing with claims from other subcontractors who are impacted by your delay."
"You need records. Records, Records of everything. If another subcontractor is holding you up, you need to document it."
"When it comes to managing the risk of LADs as a subcontractor, that is about the most you can do, barring not working at all - and not making any money, of course."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 59 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone underscores the critical role of pre-construction planning for subcontractors. He covers essential aspects such as contract review, site logistics, resource allocation, setting realistic timelines, effective communication, and risk management. Jacob emphasises that thorough planning can lead to smoother, more profitable projects by mitigating common issues like risks, miscommunication, and delays. His practical advice aims to help subcontractors enhance their project execution and overall business success, making this episode a valuable resource for construction business owners.
KEY TAKEAWAYS:
Importance of pre-construction planning for subcontractors. Site logistics and organisation for project execution. Setting realistic timelines and managing deadlines. Anticipating challenges and mitigating risks. Proactive approaches to enhance project execution.BEST MOMENTS:
"Pre-construction planning is all about laying the groundwork for your success. Whether it's reviewing contracts, preparing site logistics, allocating resources, setting realistic time scales, or managing risks, every step you take before the project starts can and will pay off in the long run."
“Every project is different and every contract is different. This isn't just standard paperwork.”
“Misunderstandings about what expected can lead to scope creep and disputes, and you can end up doing more work than you thought you'd agreed to without any additional pay."
"Safety should never be an afterthought, so it needs to be baked into your logistics, planning and of course, your risk assessment and method statements from day one."
"One of the best experiences that I remember having as a contractor involved a glazed petitioning outfit... the foresight of that contractor saved us that logistical challenge."
Link to the episode about checking your contract mentioned in the show:
Apple - https://podcasts.apple.com/gb/podcast/the-subcontractors-blueprint/id1701638267?i=1000652550701
Spotify- https://open.spotify.com/episode/39wLCRoOf8meDevs2zxRec?si=viHGwIlyR3qHYP9e26wHUw
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 58 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone covers the crucial topic of final adjustments and payment procedures under the JCT Design and Build 2016 contract. Jacob explains the complexities of final accounting, emphasising the importance of understanding the final subcontract sum and the various adjustments that can affect it. He offers practical tips for subcontractors, highlighting the need for timely documentation and effective communication with main contractors. The episode aims to equip subcontractors with the knowledge to protect their financial interests and improve cash flow, ensuring they navigate the final account process successfully.
KEY TAKEAWAYS:
Final adjustment and payment procedures for subcontractors. Complexity of final accounting and its implications for subcontractors. Impact of variations on final payments and the importance of accurate valuation. Importance of thorough documentation and timely submission of final accounts. Final payment process and the necessity of formal applications for payment.BEST MOMENTS:
"Construction projects can be a bit of a roller coaster ride from the initial inquiry and your bid through to your agreeing, the final account and the final invoice."
"Understanding these adjustments is crucial to helping you protect your bottom line and ensuring you are getting fairly compensated for the work that you've done."
"The timeline kicks off once your work is practically complete, and at this point, you have two months to submit all the necessary documents to the main contractor."
"If you miss your deadline, the contractor is still required to prepare a statement on the information they have, but of course, without your input, they might miss key details and you could end up with a lower payment at the end of the job than what you deserve."
Link to the episode about re-measurement mentioned in the show:
Apple - https://podcasts.apple.com/gb/podcast/the-subcontractors-blueprint/id1701638267?i=1000648010674
Spotify - https://open.spotify.com/episode/1bm9Pkqg5QbQND0sh8lEoR?si=0745b4c495df4c5f
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 57 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone discusses the critical topic of change orders in subcontracting, focusing on the JCT 2016 design and build contract. Jacob emphasises the importance of understanding contract terms, particularly the procedures for submitting claims for additional time or money due to project changes. He highlights potential challenges subcontractors may face and offers practical advice on managing changes effectively. Key pointers include understanding the contract you’re working under, to know your entitlements, change procedures, documentation required, to successfully lodge a change. Jacob encourages subcontractors to be proactive and well-informed to secure their entitlements and protect their businesses.
KEY TAKEAWAYS:
Procedures and requirements for submitting claims for additional time or money. Challenges subcontractors face in navigating contract terms. Importance of reading and comprehending subcontract agreements and particularly the amendments to standard terms. Assessment of the impact of changes on project costs and timelines. Significance of documentation and evidence to support claims.BEST MOMENTS:
"The consequences of not submitting that claim or submitting the notice are that you then forgo any entitlement to that extra time or money."
"How many times within 30 days have you got all of that information? How many times do you know what the full effects of that delay are going to be?"
"I wonder how many of you out there have fully read and digested the change clauses in your subcontract, and understood what you have to do to get your hands on the extra money that you might be entitled to."
"A picture paints a thousand words. And if you think about that in how many thousands of pounds you'd have to pay a lawyer to write a thousand words, a picture is worth a small fortune."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 56 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone discusses the crucial importance of clarifying pricing in subcontracting work. Sharing a personal story from his early career, Jacob highlights the pitfalls of vague agreements and miscommunication. He recounts a challenging project involving boiler replacements, where unclear scope definitions led to financial losses. Jacob emphasises the need for thorough client discussions, provisional sums for undefined items, and meticulous documentation. This episode offers valuable advice to subcontractors on ensuring profitability, through clear communication and detailed scope definitions.
KEY TAKEAWAYS:
Importance of clarifying pricing in subcontracting work. Detailed scope definitions to avoid misunderstandings. The impact of vague agreements on financial outcomes. The significance of engaging in thorough discussions with clients. Importance of documenting communications and clarifications in writing.BEST MOMENTS:
"And this essentially turned into a humongous argument with them saying that they'd bought one thing and was saying that we'd only price to do a different thing.”
“They'd done everything properly as regards defining the scope, so we had things like the asbestos refurbishment and demolition survey locations of all of the existing services which we needed to avoid, and a really detailed pricing document."
"But when it came to recommissioning the air handling unit, it was clear that that wasn't enough because basically more than one coil needed replacing."
"And sometimes within a bid there are these unknown items. Sometimes they can be fairly minor, but sometimes they can turn into big, hairy beasts of an item that, in one brutish swipe, can bring the whole project down for you."
“Pick up the phone and have a good, detailed conversation about exactly what that means in terms of a scope item and what the contractor is expecting you to provide for it."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 55 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone delves into the crucial topic of cost reporting for subcontractors. Jacob shares a cautionary tale about a former partner subcontractor whose contracting business faced liquidation due to poor cost management and lack of regular cost reporting. He underscores the importance of forecasting future costs, contrasting it with traditional accounting practices. Jacob offers practical advice on understanding labor and material costs, tracking project progress, and making necessary adjustments. This episode aims to equip subcontractors with essential financial management strategies to ensure profitability and business growth.
KEY TAKEAWAYS:
Challenges faced by subcontractors due to poor cost management. The difference between accounting (past costs) and forecasting (future costs). Key components of effective forecasting. Making adjustments based on forecasting insights. Learning from past project experiences to improve profitability.BEST MOMENTS:
"He lost hundreds of thousands of pounds worth of retentions that had built up over quite a long period."
“Cost reporting is very much more than just a simple accounting procedure, because we're not just interested in what has gone before us and how much money we've made or lost."
“Had he been carrying out that simple exercise that I outlined, which involved assessing what you'd paid for to date and taking into account that some of what you've bought might be sitting in stock on site or stock in your yard, contrasting that against the value that you've earned to see how much profit you'd made, he would have quite quickly been able to answer whether he was making enough money or not.”
"We need to be able to identify when something has had a bad effect on our job, and if it carries on happening where we're going to end up."
"By understanding what has gone before, you can set yourself on the path towards a more profitable future."
Links to episode 12 mentioned in this episode:
Apple - https://podcasts.apple.com/gb/podcast/the-subcontractors-blueprint/id1701638267?i=1000635658769
Spotify - https://open.spotify.com/episode/0sFow038711RlNssYMuwBO?si=770c2a7703344e0f
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
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In episode 54 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone talks about the critical topic of handover procedures and documentation requirements for subcontractors. Jacob discusses a recent debate with a subcontractor who faced withheld payments due to missing documents like collateral warranties and product details. Emphasising the importance of understanding contractual obligations, Jacob explains how proper documentation can prevent payment issues and legal repercussions.
KEY TAKEAWAYS:
Handover procedures and requirements for subcontractors. Consequences of missing essential documents like collateral warranties. Legal implications of inadequate documentation. Client-imposed documentation requirements and payment risks. Proactive management of documentation throughout the project lifecycle.BEST MOMENTS:
"If there is an obligation in the main contract to pass those documents on to the client, then the contractor is likely to get themselves in trouble if they haven't obtained them from you."
"Each contractor has to have this register of approved documents of approved contractors, and it generates so much work that the contractors then outsource that to these accreditation houses."
Authorities can drop in on site at the drop of a hat and demand to see a contractor's waste, transfer tickets for everything that they've taken off offsite, and if they're found to not have them, they can be in for substantial fines.
"So what I'm asking is why leave it until the end of the job? You know, you're going to be asked for this stuff."
"Take the stress out of practical completion with a bit of proactive management."
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.
LinkedIn - www.linkedin.com/in/jacob-austin/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
- Daha fazla göster
