The Subcontractors Blueprint

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

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

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:

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

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:

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

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:

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

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:

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

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:

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

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:

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

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:

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

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:

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

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:

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