The Subcontractors Blueprint

In episode 87 of The Subcontractors Blueprint podcast, we 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
• Retentions are a small percentage (typically between 1.5% to 5%) held back from the payment of completed work on a project. This money is withheld from the contractor and subcontractor to ensure that any defects or issues are addressed before the full payment is made.
• Retentions are typically released in two stages: the first half is released upon achieving practical completion, and the second half is released after the defects liability period. Subcontractors need to ensure that their works are snag-free and that they obtain a practical completion statement to mark the completion of their work.
• It is common for contractors to hold onto retentions for longer than they should, causing delays in payment for subcontractors. Subcontractors should be proactive in monitoring and chasing their retentions to ensure timely payment.
• The Construction Act prohibits the linking of the main contract to the subcontract in terms of retention release. Once the subcontractor's defects liability period is up, they have the right to be paid the retention, regardless of whether the contractor's defects liability period is complete.
• Subcontractors should consider negotiating a retention cap with the contractor if they have a good working relationship. This allows for increased cash flow while still providing the contractor with some security for potential defects. However, a retention cap should be negotiated on an individual basis and should not compromise the quality of the subcontractor's work.

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."

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 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.

In episode 86 of The Subcontractors Blueprint podcast, host Jacob Austin explores the key differences between the JCT 2024 and JCT 2016 contracts. He discusses updates in design liability, communication methods, dispute resolution, payment provisions, and new clauses on sustainability and building safety. Jacob emphasises the importance of subcontractors understanding these changes to manage risks and ensure profitability. He advises listeners to update their contract templates and practices to align with the new JCT 2024 standards. This episode provides essential insights for subcontractors aiming to stay competitive and successful in the evolving construction industry.

KEY TAKEAWAYS:

BEST MOMENTS:

"Email is finally in. So in JCT 16 formal notices often had to be on paper... But now in the 24, for the majority of notices are able to be sent by email."

"Parties now need to work in a cooperative and collaborative manner, in good faith and in a spirit of trust and respect."

"The important thing that you need to do here is to ensure that your team understands what the legislation is, and what you need to do to comply with 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 85 of The Subcontractors Blueprint podcast, host Jacob Austin is talking about the Building Safety Act (BSA) of 2022, a pivotal reform in construction regulatory and building safety law following the Grenfell Tower tragedy. Jacob outlines the new roles and responsibilities for subcontractors, emphasising the importance of compliance and documentation. He discusses the increased scrutiny from local authority inspectors and the need for thorough paperwork, especially for design work. Jacob also highlights the impact on high-rise residential buildings and the necessity of coordination with accountable persons. The episode provides practical advice on adapting to these changes and leveraging technology to streamline compliance efforts.

KEY TAKEAWAYS:

BEST MOMENTS:

"The Building Safety Act 2022, known as BSA, is a landmark piece of legislation overhauling building safety regulation."

"The big theme of the act is accountability."

"It's no longer acceptable to rely on building control to catch mistakes or to assume safety is someone else's job."

"The law now expects a team effort rather than the siloed approach of old."

"It's taking really seriously a disaster that's happened and trying to prevent a similar thing from happening again."

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 84 of The Subcontractors Blueprint podcast, host Jacob Austin dives into conflict avoidance in the construction industry, focusing on the RICS Conflict Avoidance Process (CAP). Jacob underscores the importance of proactive conflict resolution to prevent disputes from escalating into costly legal battles. He explains how the CAP works, its benefits for subcontractors, and the significance of maintaining collaborative relationships with main contractors or clients. By incorporating CAP into contracts, subcontractors can save money, reduce stress, and improve project outcomes, fostering a more cooperative and efficient working environment.

KEY TAKEAWAYS:

BEST MOMENTS:

"Litigation, adjudication and arbitration might solve the dispute, but they typically leave both parties drained of time and, of course, money."

"CAP is here to flip the script and introduce proactive conflict resolution instead of waiting for a meltdown."

"Transport for London has tested CAP on about 20 projects and found big savings in avoided claims."

"The clue with this process is in the name conflict avoidance process. So this is about dealing with problems as soon as they appear."

"It's the difference between nipping a weed in the bud versus hacking through a full grown, thorny bush."

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 83 of The Subcontractors Blueprint podcast, host Jacob Austin is speaks on the CIC BIM Protocol, crucial for managing Building Information Modelling (BIM) design processes in construction projects. Jacob emphasises the importance of understanding the protocol's structure, key clauses, and common pitfalls. He highlights the need for subcontractors to be aware of their obligations, the implications on their liability, and the significance of proper documentation and training. By mastering these elements, subcontractors can enhance collaboration, efficiency, and their overall success in the increasingly digital construction industry.

KEY TAKEAWAYS:

BEST MOMENTS:

"The ultimate goal is fewer mistakes, better coordination, and clearer digital collaboration across the project."

This puts a clear obligation on you to actively engage in the coordination process, not just passively, to receive instructions."

"This is trying to give the members of the project the ability to rely on your data, but limiting your liability if they modify it or start misusing it for something beyond the project scope."

"The BIM process is incredibly useful and it's really collaborative, but it can also be really rigid."

"Ignorance is not bliss. Ignorance is going to get you a contra charge."

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

n episode 82 of The Subcontractors Blueprint podcast, host Jacob Austin is discussing the transformative impact of technology in the construction industry. He delves into Building Information Modelling (BIM), drones, and digital sign-off technologies, emphasising their potential to streamline processes, improve efficiency, and boost profitability for subcontractors. Austin offers practical advice on integrating these tools, such as designating team members to manage project information and leveraging digital platforms for better version control and communication. He underscores the importance of adopting these advancements wisely to enhance operations and stay competitive in an increasingly digital landscape.

KEY TAKEAWAYS:

BEST MOMENTS:

"One report found projects using common data environments had a 20% shorter project duration and 30% lower overall costs."

"Drones can do these kinds of tasks in minutes, not only saving time, but improving safety."

"BIM isn't just a fancy 3D model, but a process that integrates design, quantities, scheduling, and programming into a shared digital space."

"No technology fixes a bad process, so you need to integrate these tools wisely."

"Embracing technology in construction can be a bit like going to the gym... stick with it and you'll come out faster, stronger, and maybe even wondering why you didn't start sooner."

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 81 of The Subcontractors Blueprint podcast, host Jacob Austin is explores the distinctions between large and small construction projects. He advises subcontractors on tailoring their commercial strategies to different project scales, emphasising profitability, cash flow management, and contract comprehension. Jacob discusses the complexities and risks of large projects, such as high-rise buildings, versus the quicker turnarounds and steady cash flow of smaller projects. He also highlights the importance of internal capabilities, marketing, and risk management. The episode aims to help subcontractors make informed decisions about the types of projects that best align with their business models.

KEY TAKEAWAYS:

Link to the Cost Reporting Episode Mentioned in this Episode

BEST MOMENTS:

"The bigger and the more educated your client is, the more likely they are to try and tilt that contract in their favour."

You need to do your due diligence not just on the contract that you're appointed under, but on the client themselves that's going to pay the bills."

"Smaller projects might have less absolute risks. There's less people to impact if things go wrong, and that means less greedy mouths to feed when it comes to things like contra charges."

"Cash flow is really important to your business, so consider before you commit to doing a job that you can see it through to the end and remain financially stable."

"Don't be afraid to carve out a niche in one area if that's where you particularly excel, or perhaps maintain a smart blend."

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

This week's episode - 80 of The Subcontractors Blueprint podcast is a rerun of Episode 19, in which Jacob Austin discusses the topic of Value Engineering and Whole Life Costing. He starts by defining these two phrases which are widely used in the industry. He then gives some historical context to value engineering and how it has evolved into what we know today. Jacob highlights some interesting reasons behind particular materials being specified and how these may affect the implementation of value engineering. He also gives some practical advice on how to deal with value engineering requests, what to do to avoid the risks and ensure the full impact is considered prior to proceeding. Throughout the episode, Jacob imparts his industry wisdom to help subcontractors manage the value engineering process.

KEY TAKEAWAYS:

BEST MOMENTS:

"All it is is ripping out any value from a project and substituting it with cheap alternatives"

"In my experience how we implement it in construction is all to do with cost reduction"

"Sometimes the best savings can be quite radical"

"It just goes to show you never can tell what someone else is going to want and if you can, your skills are probably best employed somewhere else"

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 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 79 of The Subcontractors Blueprint podcast, host Jacob Austin is talking about aiming to secure work in a competitive market. Jacob tackles common bidding challenges, stressing the importance of crafting compelling bids that emphasise unique value propositions. He covers key topics such as writing effective bids by tailoring them to client needs and showcasing competitive advantages. Additionally, he discusses identifying and pricing risks through thorough risk assessments to prevent underbidding. Jacob also highlights the significance of tracking material prices and labor rates to stay updated on market conditions for accurate pricing. Furthermore, he advises using past experiences by leveraging data from previous projects to inform future bids and emphasises leveraging niche expertise to highlight specialised skills for a competitive edge.

KEY TAKEAWAYS:

BEST MOMENTS:

"Winning a project isn't just about one job; it's about building relationships with main contractors and their project managers."

"Consider how each project can build your reputation, bring you more expertise, and help you strengthen your market position."

"Develop a standard tender checklist that should cover everything from reviewing the main contract conditions to the spec, the scope, and the program."

"Using past experience to inform your bids is vital; if you're not analysing that to refine your future bids, you're missing out on a huge learning opportunity."

"Bidding isn't about winning at any cost; it's about winning profitably and sustainably."

Link to the Cost Reporting Episode Mentioned in this Episode

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 78 of The Subcontractors Blueprint podcast, host Jacob Austin is speaks about the rising importance of sustainability clauses and environmental requirements in the construction industry. Jacob highlights the necessity for subcontractors to adapt their business models to meet these evolving demands while maintaining profitability. He discusses the implications of sustainability obligations in contracts, the benefits and challenges of implementing eco-friendly practices, and proactive strategies for subcontractors to address sustainability. By embracing sustainable practices, subcontractors can enhance their marketability, build stronger client relationships, and contribute to a more sustainable future in construction.

KEY TAKEAWAYS:

BEST MOMENTS:

"If you want to keep winning lucrative contracts, particularly for government or large commercial organisations, then you need to tackle and address these green obligations head on."

"The tricky part is ensuring the cost for complying with those requirements is in your price. If not, you could face unexpected expenses."

"Implementing green measures often forces you to optimise your own processes, be that reducing materials or thinking about lean construction techniques which can boost your internal efficiency."

"Sometimes eco friendly materials have longer lead. In times, maybe they're not manufactured as often, or they come from smaller, more specialised suppliers."

"You might look at sustainability as a burden, but if you approach it in a strategic fashion, it can be a powerful tool for you to differentiate yourself in a competitive marketplace."

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