In episode 76 of The Subcontractors Blueprint podcast, host Jacob Austin is talking about Contra Charges in the construction industry. Jacob explains that contra charges are common law mechanisms to address damage or breaches of contract, not punitive measures. He covers key points such as the definition and context of contra charges, common reasons they occur, and the burden of proof required for disputes. Jacob also provides practical advice on handling contra charges, including maintaining detailed records, requesting evidence, and negotiating settlements. The episode emphasises proactive risk management and collaborative solutions to mitigate the impact of contra charges on subcontractors.

KEY TAKEAWAYS:

• Definition and context of contra charges in the construction industry.
• The burden of proof required for main contractors to justify contra charges.
• Practical advice for subcontractors on managing contra charges effectively.
• Emphasis on thorough documentation and communication throughout projects.
• Encouragement for subcontractors to be proactive in resolving issues to avoid formal contra charges.

BEST MOMENTS:

"If there's a charge, the chances are they've had to arrange for corrective works, or they've incurred some costs due to a problem that you have caused."

"The JCT forms, for example, literally don't say the word contra charge."

"The contractor has got to establish that there has been something that you've done that's contrary to the contract, or perhaps you failed to do something that you are obliged to do."

"Consider a pragmatic settlement. If the amount seems fair, or if you know that your team was at fault, dragging out the dispute probably isn't going to help."

"Documentation is your best friend. Firstly, knowing what your order documents say. But then those site documents, the photos, the diaries, the email trails, your program and progress monitoring."

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