The Subcontractors Blueprint

In episode 17 of the Subcontractors Blueprint podcast, Jacob Austin explores the topic of retrofitting. He explains that retrofitting involves introducing new materials, products, and technologies into existing buildings to improve energy efficiency and reduce greenhouse gas emissions. Jacob discusses the government's targets for net zero emissions and the implications for the construction industry. He also highlights the challenges and considerations involved in retrofitting projects, such as dealing with asbestos, addressing unknowns in existing buildings, and managing stakeholders and occupants. Jacob emphasizes the importance of effective communication, documentation, and planning to ensure successful retrofitting projects.

KEY TAKEAWAYS

Retrofitting refers to the introduction of new materials, products, and technologies into an existing building to improve energy efficiency and reduce greenhouse gas emissions.

The UK government has set national targets for the reduction of greenhouse gas emissions, including achieving net zero emission status for the national building stock.

Retrofitting projects can involve various activities such as improving insulation, reducing thermal bridging, enhancing air tightness, reducing condensation, and replacing old heating systems with low or zero carbon alternatives.

When working on retrofitting projects, subcontractors should be aware of the potential challenges, such as dealing with asbestos, addressing the unknowns of existing buildings, ensuring access and storage space, and managing the needs and preferences of existing occupants.

Effective communication, documentation, and collaboration with stakeholders, including clients, contractors, and building occupants, are crucial for the success of retrofitting projects. Keeping records, asking the right questions, and addressing issues promptly can help mitigate risks and ensure project success.

BEST MOMENTS
"Retrofitting is the introduction of new materials, new products and technologies into an existing building."

"The financial implication of achieving net zero emissions is absolutely huge, and it may well be the public purse that has to stump up some of the bill for that."

"When you're working on an existing building, the information that you're working with is only as good as the surveys of the existing building." 

"You've got to be particularly aware when you're pricing a lump sum. Have you been able to inspect everything? What are the unknowns that you're pricing?" 

"When you're working in these kind of live environments, you've got to remember those are somebody else's environment as well." 

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

In this episode of the Subcontractors Blueprint podcast, Jacob Austin discusses payments under the Construction Act, with a focus on payment notices. He explains that the Construction Act enforces rules on all construction contracts, regardless of whether they are formal or informal agreements. Jacob highlights the importance of regular and prompt payments throughout the supply chain and emphasizes the need for clear mechanisms for determining payment amounts. He also delves into the requirements for payment notices, pay less notices, and the basis on which sums are calculated. Jacob provides insights on how subcontractors can navigate these processes and ensure fair outcomes. Overall, this episode provides valuable information for subcontractors looking to improve their understanding of payment procedures under the Construction Act.

KEY TAKEAWAYS:

The Construction Act, also known as the Housing Grants Construction and Regeneration Act, enforces rules on all construction contracts, even if they are not formal contracts.

Payment notices must be issued within five days of the due date for payment, even if no amount is due. If the payer intends to pay a different amount, a pay less notice must be issued, stating the basis for calculating the payment.

Contractors must provide a detailed breakdown of how they are valuing the work being paid for, including individual amounts and any adjustments made.

Pay-when-paid clauses are generally ineffective under the Construction Act, unless a third party involved in the payment becomes insolvent.

If a payment notice is not issued, the original application for payment becomes the default notice. Contractors have the option to issue a pay less notice, but if they fail to do so, the payee has the right to suspend work until full payment is made.

BEST MOMENTS:
"The Construction Act effectively enforces these rules by statute on all construction contracts."

"The contractor doesn't have to do anything in the eyes of the law, as long as they pay you the amount that you've applied for." 

"If you don't receive a pay less notice, you would just get paid your application, and then the same right to suspend would apply if you didn't get the money." 

"The contractor has got to have some genuine belief that that is a fair valuation and that is what they'll pay you based on the information that they've got at the time."

"Your contract, even if it is in support of their contract, is a standalone agreement." 

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

In this episode of The Subcontractors Blueprint, Jacob Austin discusses the tender process and submitting quotations. He acknowledges that while two-stage tenders are not commonly used in subcontractor procurement, they can be beneficial for complex projects. Jacob highlights the increasing requirements for pre-qualification in subcontractor procurement, with contractors needing to ensure their subcontractors are competent and capable. He also expresses frustration with the numerous pre-qualifications and accreditations required, and hopes for a more streamlined and universal system. Jacob provides valuable insights on how subcontractors can navigate the tender process, including clarifying scope, addressing program considerations, and pricing strategies. Overall, this episode offers practical advice for subcontractors looking to ensure profitability and grow their business.

KEY TAKEAWAYS

The traditional single-stage tender approach is commonly used in subcontractor procurement, with limited use of two-stage tenders.

Main contractors often require subcontractors to undergo pre-qualification processes to ensure competency and capability, including health and safety policies, environmental policies, and quality management.

The use of standardized assessment systems, such as PAS91 or the Common Assessment Standard, aims to simplify the pre-qualification process, but additional requirements and questionnaires can still be added by main contractors.

When submitting a tender, subcontractors should clearly define the scope of work, referencing relevant drawings and specifications, and stating any exclusions or alternative proposals.

It is important to address pricing accurately, including any errors or discrepancies in the bill of quantities, offering alternative options if applicable, and clearly stating the validity period and any discounts or additional costs.

BEST MOMENTS

"And rather disappointingly, various of the main contractors have got their own little questionnaires added into these pre-qualifications." 

"What the fuck has that got to do with building? What happened to just procuring the best contractor to do the work?"

"So we're starting to trickle into the things that you need to provide when you submit your tender."

"By stating what these are you're limiting your liability and you're also giving the contractor some useful information to help vet his other tenders." 

"A statement such as that should allow you to negotiate the conditions if the contractor finds your offer to be of interest." 

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 tackles the topic of relevant events and relevant matters in construction contracts. Building on the previous episode's discussion on submitting an extension of time request, Jacob explains the distinction between relevant events and relevant matters, and why they are separate entities. He emphasises the importance of providing detailed information and records to justify delays and demonstrate fault on the part of the contractor. Jacob also highlights the need to focus on relevant events that have associated costs, rather than chasing extensions of time for events that won't result in financial compensation. Overall, this episode provides valuable insights into navigating the extension of time clauses and loss and expense claims in subcontracting.

KEY TAKEAWAYS

BEST MOMENTS

"If you're chasing costs, you have to be chasing a relevant event that's got a relevant matter associated with it." 

"The weather is a good example of one of those neutral events that's nobody's real fault, the contract rarely saying, nobody gets punished for."

"It is about time somebody did something about statutory authorities because they've been the ruin of many a poor job." 

"If it's the employer's or the contractor's fault, then you're likely to be able to recover costs." 

"I've mentioned before, but the simple principle to remember is if it's the employer's or the contractor's fault, then you're likely to be able to recover costs." 

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 discusses the topic of delays in construction projects. He emphasises the importance of issuing notices to alert others of potential delays and suggests having a conversation with the relevant parties before sending the notice. Jacob highlights the need for clear records and documentation to substantiate delays and advises subcontractors to request extensions of time retrospectively, providing all relevant information and evidence. He also touches on different methods of delay analysis and hints at future episodes that will delve deeper into the subject. 

KEY TAKEAWAYS

Issuing notices and having open communication with the contractor is crucial when dealing with delays on a construction site. It helps to avoid misunderstandings and potential conflicts.

Keeping detailed records of delays is essential. This includes taking photographs, maintaining a site manager's diary, and documenting any contemporary records that can substantiate the delay at a later date.

Requesting an extension of time is a retrospective tool that subcontractors can use to inform the contractor about the amount of time lost due to delays. It is important to provide clear and factual information, including start and finish dates, relevant subcontract events, and any supporting documentation.

While there are various methods for assessing delays, such as as-planned versus as-built and impacted as-planned, it is not always necessary to use complex program analysis. In many cases, the contractor should have enough information to determine an extension of time without relying on these methods.

It is crucial to understand the relevant subcontract events and matters when requesting an extension of time. Subcontractors should refer to their subcontract and clearly note the events and matters that caused the delay. Additionally, documenting loss and expense may require further discussion and analysis, which can be addressed in a separate episode or discussion.

BEST MOMENTS

"And part of the thrust of what I was getting at when we're speaking about notices is that they are there to give somebody notice of something." 

"You want to think about how you're delivering your notice and a meeting or certainly a phone call, jumping on Teams, Zoom, whatever, having a conversation about it before it lands in somebody's inbox or in somebody's pigeonhole can avoid some of the heartache." 

"You're doing this to bring things to people's attention before it becomes a big issue, it spirals out of control and it causes a huge delay to a job."

"It's about the records. More than anything else, it's about the records. What day did you start? What day did you get access to each little section?"

"And if you can do this, it makes it really easy. You've demonstrated the start, you've demonstrated the end. There's no even opportunity to argue." 

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

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