In episode 75 of The Subcontractors Blueprint podcast, host Jacob Austin discusses the crucial topic of extensions of time clauses in construction contracts. He explains how these clauses protect subcontractors from liquidated damages and help manage project delays. Jacob provides practical advice on the procedures for applying for extensions, identifying relevant events, and understanding the implications of concurrency and time at large. He emphasises the importance of timely notifications, comprehensive record-keeping, and effective communication. This episode aims to equip subcontractors with the knowledge to enhance profitability, improve cash flow, and ensure business growth.

KEY TAKEAWAYS:

• Importance of extensions of time (EOT) clauses in construction contracts for subcontractors.
• Protection against liquidated damages due to project delays.
• Necessity of timely notification to contractors regarding potential delays.
• Importance of maintaining accurate and comprehensive records of delays.
• Procedures for applying for extensions of time and relevant events that justify them.

BEST MOMENTS:

"Liquidated damages are actually quite useful because it puts a finite answer on what that cost is, so that you can manage the risk accordingly."

"The extension of time procedure and the liquidated damages themselves are there to avoid that messy process and help all parties manage the risk and understand where they stand."

"If the delay is a natural event, as in something like the weather or something that is in nobody's control, then you would be entitled to more time, but you wouldn't be paid for the time."

"When you realise a delay is occurring or likely to occur, you have to give a notice."

"The notice serves a valuable purpose; it allows everyone to investigate and take records whilst memories are fresh."

"Concurrency is really difficult to prove, and it is also genuinely quite rare for there to be two overlapping events with equal effects that run genuinely concurrently."

Link to episode 14 referred to in this episode: Episode 14

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/

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