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/

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