In episode 68 of The Subcontractors Blueprint podcast, host Jacob Austin provides construction business owners with essential strategies manage sub-contracting their own work. Key topics include contractual obligations, quality control, payment structures, communication, and risk management. Jacob emphasises the importance of clear communication, robust contractual protections, and diligent oversight to maintain compliance with main contractor expectations.

KEY TAKEAWAYS:

• Establishing effective communication channels between main contractors and sub-subcontractors.
• Strategies for ensuring quality control and compliance with industry standards.
• Managing materials and payment practicalities, including retention of title clauses and avoiding factoring.
• The significance of regular check-ins and open dialogue to maintain project alignment.
• Managing project timelines and addressing potential delays with clear clauses and penalties.

BEST MOMENTS:

"When you, as a subcontractor working for a main contractor, decide to engage a sub subcontractor, it's essential to ensure that relevant terms from the main contract are passed on downstream."

"You also need to transfer program requirements, but also be mindful that in construction, it's common to see program requirements shift due to unforeseen circumstances."

"Moving on to payment structures. One critical factor in managing your sub subcontractors is setting fair but protective payment arrangements to maintain cash flow."

"One thing that you have to be really clear about, if you're managing sub subcontractors, is maintaining a clear communication boundary with the main contractor."

"Consider developing a quality checklist tailored to the specifics of the sub subcontract tasks and sharing it with them as part of the inquiry."

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 67 of The Subcontractors Blueprint podcast, host Jacob Austin explores the crucial topic of bonds and guarantees in construction contracts. Tailored for subcontractors, Jacob explains the different types of bonds—default and on-demand—their purposes, and financial implications. He emphasises the importance of understanding bonding capacity and offers practical tips for managing bonds effectively. Jacob also discusses the significance of termination dates and parent company guarantees. This episode aims to educate subcontractors on navigating the complexities of bonds and guarantees, ensuring they protect their financial interests and thrive in the construction industry.

KEY TAKEAWAYS

• Definition and function of bonds as financial instruments in the construction industry.
• Financial security and risk management implications of bonds for subcontractors.
• Process of obtaining bonds through insurance companies and banks.
• Financial implications and potential costs associated with bonds.
• Practical tips for managing bonds and guarantees effectively.

BEST MOMENTS:

"Many subcontractors, in fact, might be more financially stable than the contractor themselves. Who's asking for that bond? And that's where understanding your options and rights around bonds can save you from taking on undue risk.

"A default bond, which is sometimes called a conditional bond, is a true performance bond. It's only triggered if the subcontractor, let's say you, fails to meet your contractual obligations."

"On demand bonds are typically more expensive as well due to the higher level of risk. Your bank might recommend one, but it's worth noting that this is the most onerous form of bond."

"Obtaining a bond can tie up a subcontractors financial resources, and that potentially makes it harder for them to fulfil the contract in the first place."

"Bonds can be modified to meet the needs of both parties, so don't hesitate to request changes if you feel certain terms could expose you to undue risk."

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 66 of The Subcontractors Blueprint podcast, host Jacob Austin speaks on the critical aspects of construction law, emphasising the significance of contracts for subcontractors. He provides practical advice on protecting your business from unwanted contractual risks by understanding contractual rights and obligations. Jacob highlights the importance of written contracts, outlines key elements that make them legally binding, and discusses various contract types. He also covers relevant UK statutes, common pitfalls to avoid, and effective dispute resolution methods. This episode serves as an invaluable resource for subcontractors navigating the complexities of construction contract law.

KEY TAKEAWAYS:

• Key elements that make a contract legally binding.
• Relevant statutes influencing construction contract law in the UK.
• Differences between express and implied terms in contracts
• Common pitfalls subcontractors should avoid in contract agreements.
• Importance of maintaining accurate documentation for protection.

BEST MOMENTS:

"There are three key elements which are the offer and acceptance, the consideration, and the intention to create legal relations."

"Written contracts have the advantage of clarity. They lay out terms like payment schedules, timelines, and specific deliverables, which leaves less room for misinterpretation."

"Simple contracts can be made in writing, orally, or through conduct, and they're typically enforceable for up to six years."

"Express terms are specifically stated, and express terms may include further terms by reference."

"Keeping documentation is one of the best tools you have for protecting yourself in a subcontract."

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 65 of The Subcontractors Blueprint podcast, host Jacob Austin covers the complexities of global claims in construction disputes. He explains what global claims are, their associated risks, and the importance of maintaining detailed records. Jacob provides strategies for both making and defending against these claims, emphasising the need for clear causation and accurate documentation. He also highlights key legal precedents and offers practical advice for subcontractors to protect their interests. This episode aims to equip construction business owners with the knowledge to navigate global claims effectively, ensuring profitability and business growth.

KEY TAKEAWAYS:

• Definition and explanation of global claims in construction disputes.
• Importance of maintaining detailed records for claims.
• Legal principles and burden of proof in global claims.
• Strategies for making and defending against global claims.
• The role of causation and dominant causes in claims.

BEST MOMENTS:

"A global claim lumps everything together and argues that the overall cost was caused by a combination of multiple events."

"The burden of proof is still on the claimant to show that the events they're claiming for actually caused the loss."

"A global claim doesn't give the other party a clear picture of what they're being held responsible for."

"The best way to avoid a global claim is to keep detailed records throughout the project."

"If you can break the chain of causation, the claim may fail altogether or at least be heavily reduced."

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 64 of The Subcontractors Blueprint podcast, host Jacob Austin explores the vital role of mediation in the construction industry, particularly for subcontractors. He outlines the mediation process, emphasising its benefits over traditional litigation, such as being less adversarial, faster, and more cost-effective. Key terms like BATNA, mediator, and settlement agreement are explained, alongside the mediator's role and the importance of confidentiality. Jacob also discusses the costs involved and potential outcomes of mediation, providing subcontractors with practical insights to handle disputes efficiently and maintain business health.

KEY TAKEAWAYS:

• Overview of the mediation process and its advantages over litigation.
• Stages of the mediation process (introduction, information exchange, option generation, negotiation, conclusion).
• Confidentiality aspects of mediation and its implications for parties involved.
• Cost considerations for mediation, including fixed fees and potential savings compared to litigation.
• Potential outcomes of mediation, including settlement agreements and non-binding conclusions.

BEST MOMENTS:

"Mediation works by bringing the disputing parties together with a neutral mediator who helps to facilitate communication and negotiation. The goal is for both parties to reach a mutually acceptable agreement without the need for a formal court hearing or proceedings."

"And here's the best part: nothing is binding until both parties agree and sign a written settlement. That means that you can explore solutions and take risks during the process, without the fear of being locked into something that you don't agree with."

"The role of the mediator isn't to decide what's right or wrong, or who's right or wrong, but to guide the process and help the parties reach a resolution in construction disputes."

"Think of the mediator as a master navigator. They aren't there to make decisions and tell you where you're going to end up, but they are there to help both the parties explore all the possible decisions and solutions, and guide them along the path that they choose."

"Mediation offers you a meaningful way to settle your construction disputes whilst avoiding the adversarial and lengthy procedures of litigation, and is even quicker and more cost effective than the construction industry's preferred method of dispute resolution adjudication."

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 63 of The Subcontractors Blueprint podcast, host Jacob Austin delves into the crucial topic of completion in subcontracting. He explains the significance of understanding completion milestones, such as practical and final completion, and their impact on subcontractors' obligations, payments, and liabilities. Jacob emphasises the need for effective planning, clear communication, and well-defined contractual terms to avoid disputes and ensure profitability. He also highlights the importance of issuing practical completion notices and staying proactive during the defects liability period. This episode offers valuable insights to help subcontractors navigate the complexities of the construction industry.

KEY TAKEAWAYS:

• Importance of understanding completion milestones in subcontracting.
• Definitions and implications of practical completion, final completion, and substantial completion.
• Common causes of delays in construction and the necessity of effective planning.
• Risks associated with lack of a defined start date in subcontracting agreements.
• Importance of written notices for declaring practical completion.

BEST MOMENTS:

"One thing that I'm sure we can all agree on is that money and time are two of the biggest causes of disputes in construction, and when we're talking about completion, we're really talking about both of these issues at once."

"Delays in construction can, of course, occur for a variety of reasons. This might be poor coordination between subcontractors and the main contractor, unforeseen site conditions, delays in receiving materials, changes in the project design, and unpredictable weather conditions."

"If there's no agreed start date or a clear window for when your works can begin, and by clear I mean quite a narrow window, how are you supposed to claim for an extension of time if delays happen?"

"It's important for you to remember that your contractual obligation is to complete the works within the contractually agreed time frame, not the contractor's ever-shifting program."

"Reaching practical completion signifies a number of key turning points in the contract, including the release of retention monies and the end of your liability for looking after your works on site."

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 62 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone covers the topic of day works, offering crucial advice for subcontractors. He emphasises the importance of understanding day work rates, accurately tracking hours and materials, and negotiating rates upfront to avoid disputes. Jacob provides insights on how to account for all associated costs, including supervision, travel, insurance, and equipment. He also highlights the necessity of maintaining detailed records to justify charges.

KEY TAKEAWAYS:

• Importance of charging appropriately for incidental work.
• Components that influence day work rates, including labor, overheads, and profit margins.
• Common misunderstandings surrounding day works and their pricing.
• Strategies for documenting day works, including logbooks and photographs.
• Financial implications of underestimating costs associated with day works.

BEST MOMENTS:

“There is a generally well known and well used definition of day works now that was produced by the Building Cost Information Service”

“The RICS or the BCIS regularly maintains and updates day work rates for unskilled labor all the way through to the likes of Master Craftsman.”

“When you then later charge a day work rate, you're expected to charge what is written down in your subcontract. And all of these incidental elements are expected to be included in that rate."

"So part of what you need to do here is to digest that list and work out your typical costs of employing a person on your site, and how much they are going to have to contribute towards all of the on site running costs”

“This can of course save you a lot of hassle down the line over what's done and how much it costs."

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 61 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone addresses the critical themes of risk and uncertainty in the construction industry, specifically for subcontractors. He defines risk and uncertainty, emphasising their impact on project management. Jacob categorises uncertainties into four types: certain things, known uncertainties, unknown uncertainties, and unknowable uncertainties. He provides practical strategies for identifying, analysing, and mitigating these risks to ensure profitability and improve cash flow. The episode underscores the importance of proactive risk management, open communication, and continuous learning to navigate the complexities of construction projects effectively.

KEY TAKEAWAYS:

• Implications of risk and uncertainty for project management.
• Strategies for managing known and unknown uncertainties.
• Importance of proactive risk management and flexibility.
• Use of PESTEL analysis to identify external risks.
• Impact of behavioural uncertainty on project dynamics.

BEST MOMENTS:

"No matter how well you plan, every project has elements of risk and uncertainty. Some factors are under your control and others aren't. But the key to navigating these murky waters is by understanding how to identify, manage, and mitigate both risk and uncertainty effectively."

"These are the most challenging kinds of uncertainties to deal with because there's no way to predict them or plan for them in advance."

"Your goal with this kind of risk management is to keep the project moving forward, even when things don't go exactly as planned. And remember, risk management is not a one time task. It's an ongoing process."

"One approach would be to set up some kind of early warning system. This might involve regularly checking in with stakeholders, monitoring environmental conditions, speaking to your suppliers regularly, or keeping up with the latest news that could impact your project."

"Building that culture of trust and communication and transparency can help prevent problems before they escalate into something far more serious."

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