The Subcontractors Blueprint

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:

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

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:

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

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:

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

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:

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

In episode 53 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone delves into managing construction deadlines, emphasising the importance of maintaining quality and profitability under tight schedules. Jacob highlights that the final 10-20% of a project is crucial for leaving a lasting impression on clients. He offers practical strategies for subcontractors, including thorough planning, prioritisation, clear communication, progress monitoring, team empowerment, and effective resource management. By adhering to these principles, subcontractors can ensure high-quality finishes, secure repeat business, and uphold their reputation in the construction industry.

KEY TAKEAWAYS:

BEST MOMENTS:

"Delivering a quality job within the right time scale is 99% of what it takes to get repeat work."

"Prioritising is about making sure that the right job gets done at the right time, and equally as important as that is making sure that job gets finished."

"Good communication is also with your own team, and consider the strategic use of toolbox talks to emphasise on finishing a job first time and the importance of quality control."

"This is the time when you need those all-important quality control visits and visits to make sure everything's on programme."

"The old adage you're only as good as your last job."

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 52 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone explores the ten most common causes of disputes for subcontractors in the construction industry. He provides practical insights and strategies to help subcontractors avoid these pitfalls. Key topics include warranty claims, insurance coverage, inspections and testing, termination of subcontracts, differing site conditions, contra charges, and delays. Jacob emphasises the importance of clear communication, understanding contractual obligations, and maintaining quality control. His advice aims to help subcontractors navigate industry complexities, mitigate disputes, and ensure project success.

KEY TAKEAWAYS:

BEST MOMENTS:

"Having a robust system of quality control checks and sign-off points is the best way to avoid defects."

"Be clear about what you're going to do and check the requirements of your subcontract before signing."

Termination is the nuclear button; it's the last thing you want to do as a main contractor.”

"Visit the site before you start pricing it; there's no excuse for not understanding what you need to do."

"Talking about issues at the right time and making sure details are correct are the best ways to avoid disputes."

Other episodes of The Subcontractors Blueprint mentioned in this podcast are available on the following links

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 51 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone talks about the practicalities of managing change during live construction projects. Drawing from his extensive experience, Jacob offers valuable insights and actionable advice tailored specifically for construction business owners. He emphasises the importance of proactive planning, effective communication, and adaptability to ensure smooth project transitions and successful outcomes. This episode is a must-listen for those looking to enhance their project management skills and navigate the complexities of change in the construction industry.

KEY TAKEAWAYS:

BEST MOMENTS:

"Timing is absolutely key. Timing is everything. Timing is the difference between you moving those two lines on the drawing, or you're having to break something down and reconstruct it completely in a completely different place."

"Sometimes instructions are dished out because a problem is seen with how the works are unfolding. I don't know, maybe a room can't be used for its original intention and something needs to be changed. Maybe a more powerful piece of plant is required. There's 1,000,001 reasons for making a change."

"If you can minimise these kinds of things, particularly if you can minimise time, and that's going to prevent an extension of time from the contractor or from the client, and potentially prevent lads from being deducted. Then you're definitely onto a winner, and there definitely should be some recognition that you're able to achieve a solution here."

"Maintaining momentum, maintaining morale, maintaining good communication and a proactive approach go a long way towards avoiding issues when changes come about and finishing on time against all odds. Because you've worked together as a collective, that is one of the most rewarding and satisfying things about construction work, and one of the key things that can lead to you getting that reputation of delivering and the all-important repeat business that, in the long run, can be so much more profitable."

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 50 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone delves into cash flow challenges faced by subcontractors and offers practical financial management strategies. Joined by a friend who owns a subcontracting firm, they discuss the importance of working with prompt-paying contractors, setting accurate prices, and managing retention. Jacob emphasises the value of setting up separate accounts for taxes and supplier payments to ensure financial stability. The episode provides actionable advice for improving cash flow and profitability, encouraging listeners to adopt these practices to protect your business.

KEY TAKEAWAYS:

BEST MOMENTS:

"And then also the likes of your payday lenders and these kind of organisations, they're really capitalising on people's need for money by pushing up their interest rate to some silly percentages. And that feels morally wrong to me. But at the same time, this is just the bank hedging their bets."

"So the first thing that he swears by is working for contractors that will pay him promptly and regularly. And what I mean by that is he's got a short payment period and regular valuations."

"Now, this makes the business not quite self-financing, because he's still got to cover the labour, which he pays on a weekly basis for the period that he's waiting for his first lot of money."

"And the issue is, as much as it was consistent, the inflation that had been consistent alongside it was eroding how much money he was making on every job. So regularly reviewing how much you're making out of your subcontract rates is a vital component of making the right margin on your job."

Click to listen to episode 28 mentioned in the show: https://podcasts.apple.com/gb/podcast/the-subcontractors-blueprint/id1701638267?i=1000644284764 

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 49 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone explores the evolving landscape of main contracting and its implications for subcontractors. He differentiates between main contracting and subcontracting, emphasising the shift from traditional models to modern practices that rely heavily on subcontractors. Austin discusses the challenges faced by both main contractors and subcontractors, including reduced risk, lower profit margins, and workforce stability. He highlights the broader industry impacts, such as the sustainability of skilled labor and mentorship for apprentices.

KEY TAKEAWAYS:

BEST MOMENTS:

"Main contracting typically comes from the role of the main contract, as in the document in force between the client and the contractor delivering the work on the client's behalf."

"Main contracting almost was more entrepreneurial previously, because what you would see is that a lot of main contractors had their special civil division, and they had a housebuilding team."

"If people only knew that this is the way that one of the largest industries in the country is operating regularly, I think there'd be a similar load of uproar about it."

"Consistent employment is the only way that we're going to see any kind of rise in the number of skilled operatives coming into the industry."

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 48 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone dives into the top ten issues causing late payments for subcontractors in the construction industry. Jacob offers practical advice on timely payment requests, proper invoice formatting, and meeting payment prerequisites. He stresses the importance of clear communication, understanding retentions and discounts, and navigating contract terms. Additionally, Jacob discusses the impact of project changes and the financial stability of main contractors. This episode is packed with insights to help subcontractors enhance cash flow, ensure profitability, and foster business growth.

KEY TAKEAWAYS:

Episode 11 - The Impact of Insolvency: https://podcasts.apple.com/gb/podcast/the-subcontractors-blueprint/id1701638267?i=1000635658745

Episode 30 - 5 Steps to Change Success: https://podcasts.apple.com/gb/podcast/the-subcontractors-blueprint/id1701638267?i=1000645932166

BEST MOMENTS:

"Late payment to subcontractors continues to be a blight on the industry, and cash needs to change hands really quickly to keep the big old wheels of the industry turning”

"I’ve seen firsthand the devastation that gets left behind when a contractor goes bust partway through a project, leaving someone else to step in and pick up the pieces.”

“If it doesn’t feel right, it probably isn’t right. Protect yourself, protect your livelihood, and the livelihood of all the guys that work for you.”

“You should make it as easy as you possibly can for the contractor to pay you as much money as you ask for."

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