Get ready to dive into the fascinating topic of acceleration, as Jacob takes us on a journey through its complexities. This is when subcontractors are asked to speed up their work due to project delays or scope changes. Jacob shares smart strategies like adjusting work schedules and overlapping phases to handle acceleration. He also discusses the costs involved, such as overtime and extra supervision. Jacob stresses the importance of clear communication between subcontractors and contractors about expectations, costs, and dealing with delays. He provides insights on managing costs, payment terms, and the need for a revised project plan to track progress. In a nutshell, this episode offers valuable advice for subcontractors dealing with the challenges of acceleration in their projects.

KEY TAKEAWAYS

BEST MOMENTS

"A lot of the time that will happen because there's been some kind of delay on your project."

"You might have a situation where you work some kind of hybrid shifts, so that you get two lots of people who work a full day, an eight hour day, but they both involve working some antisocial hours."

"You don't want to agree a guarantee that I will get this job finished by this date if you pay me this. Because you can all set out with the best intentions and all good endeavours follow."

"It might be worth considering if you're accelerating only a portion of the work that by getting rid of that portion early there might well be impact on other elements."

"Hopefully I've given you some useful pointers there that you can take away when you've got that situation on one of your jobs."

HOST BIO

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, 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.linktr.ee/qs.zone

This show was brought to you by Progressive Media

Jacob delves into a pressing issue within the construction industry: insolvency. He's noticed a concerning trend in recent headlines, with more and more contractors and subcontractors facing financial difficulties and going under. 

Jacob takes a closer look at the different kinds of financial troubles these folks are encountering and tries to uncover the root causes. He really stresses how vital it is to do your homework when you're partnering with contractors. That means checking out their payment track record and credit scores to make sure you're dealing with reliable partners.

But it's not all gloom and doom. Jacob also shares some practical advice to help subcontractors safeguard their businesses and reduce the risk of potential losses. So, if you're in the construction business and want to navigate the tricky waters of insolvency, this episode has some valuable insights and actionable tips for you.

KEY TAKEAWAYS

Insolvency is a significant issue in the construction industry, with many contractors and subcontractors facing financial difficulties and going into administration or liquidation.

It is important for subcontractors to carefully assess the financial health and stability of the companies they work with. This can be done through credit checks, checking payment statistics, and developing relationships with key individuals within the organization.

Subcontractors should diversify their employers to spread the risk of working with a company that may go bust. It is also important to negotiate favorable payment terms and reduce or eliminate retention if possible.

Recognizing the signs of a contractor's financial difficulties is crucial. These signs may include late filing of company accounts, persistent rumors within the industry, late payment or non-payment of invoices, and stopping or omitting portions of work without explanation.

If a subcontractor suspects that a contractor is in financial trouble, they should act quickly and decisively to minimize their exposure and potential losses. This may involve issuing notices for non-payment, protecting themselves with proper paperwork, and seeking advice from creditor service providers or debt recovery organizations.

BEST MOMENTS

"There has to be some kind of a question here of whether some of these companies have continued to trade once they've already known that they've become insolvent."

"The overwhelming majority is presumed to be planned debt and sadly is going to mean colossal losses to their equity investors."

"A lot of the time the main contractor is asked to take on a hell of a lot of risk and depending on the scenario that they've priced the job under there might not be the time to properly examine and get to know and understand all of the risks involved."

"It's not a situation of keep your fingers crossed and hope it all goes well. Because you're talking of protecting your livelihood and potentially the contractors or subbies that work for you."

"It's all well and good in these situations trying to do the right thing to help out, but ultimately it's your business doing the helping out and you've got to consider what the right thing to do is for your company, not necessarily the company you're working for."

HOST BIO

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, 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.linktr.ee/qs.zone

This show was brought to you by Progressive Media

Let's take a deep dive into the intricate subject of retentions! Jacob conducts a comprehensive discussion on the manifold challenges and exasperations retentions can pose for subcontractors. This episode serves as a repository of invaluable insights and pragmatic guidance for subcontractors grappling with the intricacies of retention in the construction industry. 

KEY TAKEAWAYS

BEST MOMENTS
"So it's a small percentage, typically between 1.5 to 5%, which is held back from the payment of completed work on a project."
"Stopping the retention is just something that needs to be done to keep the contractor in the black."
"You're effectively leaving a cash flow hole that isn't going to get any better until you do something about it."
"The whole of the subcontract supply chain is likely in the same boat as you."
"If you're increasing your price, you're effectively costing yourself and the taxpayers out there."

HOST BIO
Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, 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.linktr.ee/qs.zone

This show was brought to you by Progressive Media

Imagine a stormy sea of unpredictability – that's weather delays in construction. Jacob sets the stage, shedding light on the impact of these wild forecasts on your projects. Brace yourself as he deciphers contract forms like JCT and NEC, revealing their unique approaches.

Hold onto your hardhats as Jacob shares the keys to the weather delay kingdom. Different contracts, different rules! JCT treats adverse weather neutrally, while NEC calculates compensation events objectively. It's like having a weather guide for your contracts.

But that's not all. Jacob's got your back with practical tools and strategies. Detailed records and evidence? They're your lifelines. Negotiation tactics? He's your ally. By the end of this episode, you'll be the weather delay guru you never knew you could be.

KEY TAKEAWAYS

Weather delays in construction projects can be unpredictable and difficult to accurately forecast, making it challenging to plan and account for them in contracts.

Under JCT contracts, weather delays are considered neutral events and do not entitle subcontractors to cost recovery. However, they may be eligible for an extension of time.

The definition of "exceptionally adverse weather conditions" under JCT contracts is subjective and open to interpretation, making it important for subcontractors to communicate and negotiate with the contractor to determine what qualifies as exceptional.

Keeping detailed records, such as a site diary, is crucial for substantiating weather delay claims. Subcontractors may need to provide evidence of the abnormality of the weather conditions and the impact on their work.

NEC contracts provide a more prescriptive and objective approach to calculating and dealing with weather delays. The contract specifies a designated weather monitoring station, and subcontractors can compare the actual weather data to the one in 10-year average to determine entitlement to compensation events.

BEST MOMENTS

"The weather forecasters can't get it right, so when we're putting a contract together, what makes us think we're going to get it right?"

"The weather could be described as one thing, unpredictable."

"The NEC contract has quite a defined procedure for weather, whereas this is typically the case across all of the JCT contracts."

"The weather encountered has got to be exceptional for the time of year and location."

"The compensation event for weather is a lot more usable and user-friendly than the JCT version."

HOST BIO

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, 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.linktr.ee/qs.zone

This show was brought to you by Progressive Media

Picture this: you're the captain of your financial ship. Jacob unveils the magic of regularly monitoring costs, the compass to profitability, smoother cash flow, and business growth. Hold onto your calculators as he spills the beans on his toolkit, from sophisticated systems to trusty Excel hacks for cost tracking.

But here's the real gem: it's not just about numbers – it's about understanding your financial landscape, charting your course, and staying ahead of the game. Jacob's like your financial sherpa, guiding you through the peaks and valleys.

KEY TAKEAWAYS

Cost reporting is essential for subcontractors to ensure profitability, improve cash flow, and grow their business.

Regular cost reporting allows subcontractors to identify potential issues early on, such as unexpected increases in labor or material costs.

By comparing the amount earned to the amount spent for each element of the work, subcontractors can determine if they are making money and adjust their pricing for future tenders.

Cost reporting helps subcontractors monitor their cash flow and plan for upcoming expenses, such as purchasing expensive materials.

Keeping cost reporting simple and finding the right frequency (e.g., monthly) allows subcontractors to identify deviations from the planned course and make necessary corrections to stay on track.

BEST MOMENTS

"It's an enjoyable part of the month when things are going well, when things are going badly, it can be really, really stressful."

"What you want to do is be able to monitor whether you're making money on items."

"By doing it in this fashion, what we've done is identified an issue after just one month rather than letting it bumble on for a period of six nine months or whatever."

"What you're seeing in this analysis is that the labor costs are a little bit higher than we were expecting, only marginally, but quite a lot more material costs have been incurred than what you would have earned and what the contractor is paying you for."

"Hopefully I've shown you over the last 20 minutes or so how powerful that cost reporting can be and the benefits that you would get out of doing it on a regular basis."

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, 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.linktr.ee/qs.zone

This show was brought to you by Progressive Media

Get ready to unlock the secrets of NEC4, the groundbreaking engineering and construction contract!

NEC4 isn't just a contract – it's a game-changer designed for collaboration in building and engineering projects. Jacob breaks down the six key options, unveiling a world of possibilities. But it's not just about contracts; it's about creating a web of trust and cooperation among all players.

Hold onto your hardhats as Jacob delves into the nitty-gritty. From early warning notices to compensation events, he's got you covered. Need to adjust time and the program? Jacob's your go-to guru. Pricing compensation events and acceleration? Yep, he's got tips to keep your business soaring

KEY TAKEAWAYS

NEC4 is a set of flexible contracts for procuring buildings and engineering projects, commonly used in government procurement.

The NEC4 contract emphasizes the need for all parties to act in a spirit of mutual trust and cooperation.

Early warning notices are a risk management tool in NEC4 contracts, allowing parties to notify each other of potential issues before they become problems.

Compensation events are matters that increase costs, delay completion, or impair the performance of the work, and must be notified within seven weeks.

Pricing compensation events in NEC4 contracts requires careful consideration of direct works costs, prelims, management, and any time impacts, with a one-bite-at-the-cherry approach.

BEST MOMENTS

"The concept of an early warning notice is pretty bespoke to the NEC forum. It doesn't appear in the traditional JCT kind of contract and it's really there as a risk management tool."

"The brilliant bit around this contract is that both the time and the cost are dealt with by the same event."

"So the important thing about time is that you have the completion date, you have the planned completion date and you also have these other parts which are key dates."

"The contract requires submission of a notice for any matter which increases the total of the prices, delays completion, delays meeting a key date or impairs the performance of the work."

"The completion date remains as it was and it's that date that governs when things like damages might start to apply."

HOST BIO

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, 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.linktr.ee/qs.zone

This show was brought to you by Progressive Media

Today Jacob dives into the world of Contra Charges. Discover their real purpose, gain insights into profit protection amidst slim margins, and harness the power of evidence. Jacob's expert guidance unveils the strategy to handle issues pre-escalation and negotiate contract terms for limited liability. Tune in to equip yourself with the tools to navigate Contra Charges, safeguard profitability, and elevate your subcontracting game.

KEY TAKEAWAYS

Contra Charges are a contentious issue in the construction industry, but they are often necessary when a subcontractor causes damage or fails to perform.

The burden of proof lies with the contractor to demonstrate that a breach of contract or damage has occurred, and that there has been a cost incurred as a result.

It is important for subcontractors to challenge contra charges and request evidence of the breach and the cost incurred.

In some cases, subcontractors can negotiate agreements with the party affected by the damage to avoid a formal contra charge situation.

Subcontractors should consider including limitations of liability in their contracts and be willing to decline work if the risk of high contra charges or liquidated damages is too great.

BEST MOMENTS

"For there to be a situation where a Contra Charge is being levied or any kind of set off or abatement, it's got to a situation that nobody really wants to be in."

"And a lot of the time it tends to be the way these things are communicated that cause the biggest issues."

"So if there hasn't been any kind of breach, then there isn't grounds for a contra charge. And similarly, if there hasn't been any cost or any loss incurred, then there also isn't any grounds for a contra charge."

"So they have to prove to you that they have the right to deduct that money."

"If you know you've got a situation where a contra charge is going to happen, then it's sort of like why not take matters into your own hands and try and resolve it before it becomes this controversial issue."

HOST BIO

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, 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.linktr.ee/qs.zone

This show was brought to you by Progressive Media

Imagine a world where payments flow like a smooth river. Jacob dives into the real deal, shedding light on the struggles subcontractors face with those pesky long payment terms and dreaded late payments. Brace yourself for insights that could save your cash flow and business mojo.

Jacob's wisdom is your secret weapon against payment turmoil. He shines a spotlight on the domino effect of late payments and why paying subcontractors on time is the ultimate power move. Want to level up your payment game? Jacob's got your back with strategic gems: from deciphering payment terms to unraveling the contract sum, managing retentions, and acing final account procedures.

KEY TAKEAWAYS

Late payment is a prevalent issue in the construction industry, with over 52.9% of invoices being paid late in 2022.

Cash flow is crucial for subcontractors, and late or non-payment can cause financial strain and affect their ability to meet financial obligations.

It is important for subcontractors to understand the payment terms outlined in their contracts, including payment dates, breakdown of the contract sum, retentions, and final account procedures.

Subcontractors can negotiate for better payment terms, such as shorter payment periods, to improve cash flow and incentivize suppliers to work with them.

If subcontractors do not receive payment on time, they should follow a systematic approach, including sending reminders, issuing notices, and seeking professional advice if necessary, to ensure timely payment and protect their interests.

BEST MOMENTS

"Cash flow is critical for running a successful business and some of the construction industry's payment terms are absolutely unfriendly to cash flow."

"A few years ago, a government report found that many people in the construction industry thought that late payment and non-payment is pretty much a norm."

"More than half of all invoices sent to construction firms were paid late across 2022."

"When a payment from a customer is delayed or not received at all, it's financial strain straight away."

"Don't add late payment to the mix. Don't make that be something you can be criticized about."

ABOUT THE HOST

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, 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.linktr.ee/qs.zone

This show was brought to you by Progressive Media

Think of Jacob as your time-travel mentor, revealing five essential steps to score that sought-after EOT. He spills the beans on crafting notices, tracking events, and presenting a rock-solid case for delays and costs. It's like having an EOT superhero by your side!

With Jacob's practical wisdom, you'll not only shield your business but also foster positive contractor relationships. Tune in to become an extension of time whiz, and let Jacob navigate you through this intricate landscape. Your ticket to mastering time extensions and boosting your subcontracting game awaits!

KEY TAKEAWAYS

Issue a notice to raise awareness of potential delays: It is important to notify the contractor as soon as you become aware of an event that may cause a delay. This allows for collaboration and potential mitigation of the issue before it becomes a problem.

Understand how and where to issue the notice: Refer to your subcontract to determine the specific requirements for issuing a notice. It may need to be in writing or via email, and there may be specific individuals or email addresses to send it to.

Record all events and matters that cause or may cause delay: Keep detailed records of any events or issues that impact your ability to complete the work on time. This includes adverse weather, access delays, discrepancies in contract documents, and more.

Present your claim clearly and concisely: When presenting your claim for an extension of time, keep it simple and factual. Use the evidence and information you have collected to support your case, and clearly explain the impact of each event on the project.

Keep your notices and letters simple: Avoid overcomplicating your notices and letters. Keep them clear, concise, and focused on the specific issue at hand. This will make it easier for the recipient to understand and address the problem.

BEST MOMENTS

"A lot of subcontractors out there that I've worked with don't really get on board and engage with the extension of time provisions."

"You want to use [good relationships] as a positive and a means to getting things settled rather than something that you're relying on and using as almost a reason not to follow the proper process or the proper procedure."

"The contract really is looking for you to have a little bit of forward planning, a bit of foresight about what might hurt you and give notice so that something can be done about it."

"Use it [the contract] to your advantage and fire in your notices and that will put you really on the front foot."

"The time and the cost elements in the JCT contracts are separate to each other. Whereas under NEC these are one and the same thing."

HOST BIO

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, 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.linktr.ee/qs.zone

This show was brought to you by Progressive Media

Imagine a world where changes are the norm. Jacob takes you on a journey through various change scenarios, from scope shifts to different work conditions. Hold onto your helmets as we demystify the JCT contract, your trusty guide through construction changes.

Timing is everything, and Jacob's got the inside scoop on managing changes like a pro. Hint: detailed records are your new BFFs. Ever wondered about the art of valuing changes? Jacob's got your back with insights into pricing and cost calculation methods that will leave you feeling like a financial guru.

KEY TAKEAWAYS

Changes in the construction industry can include changes in scope, quantity, or the way work is carried out on site. These changes can be a source of frustration and administration problems for subcontractors.

The JCT contract is the most common contract in the construction industry and has provisions for handling changes. Clause 5.1 of the JCT contract defines changes as alterations or modifications to the design, quality, or materials of the works.

Timing is crucial when it comes to changes. The cost and impact of a change can vary depending on when it is instructed. It is important for subcontractors to take records and assess the impact of changes on their work.

Instructions from the contractor must be reasonable and within the subcontractor's capabilities. Subcontractors are expected to comply with instructions within seven days. Failure to comply may result in the contractor hiring someone else to complete the work and deducting the additional costs from the subcontractor's payment.

Valuing changes can be complex and depends on factors such as the character of the change, whether conditions have changed, the quantity of the change, and the impact on time and cost. Different valuation methods, such as pro rata, fair rates and prices, or time and cost basis, may be used depending on the circumstances. It is important for subcontractors to understand the valuation mechanism and provide sufficient information and calculations to support their pricing.

BEST MOMENTS

HOST BIO

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, 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.linktr.ee/qs.zone

This show was brought to you by Progressive Media