The Subcontractors Blueprint

Picture this: you're the captain of your financial ship. Jacob unveils the magic of regularly monitoring costs, the compass to profitability, smoother cash flow, and business growth. Hold onto your calculators as he spills the beans on his toolkit, from sophisticated systems to trusty Excel hacks for cost tracking. But here's the real gem: it's not just about numbers – it's about understanding your financial landscape, charting your course, and staying ahead of the game. Jacob's like your financial sherpa, guiding you through the peaks and valleys. KEY TAKEAWAYS Cost reporting is essential for subcontractors to ensure profitability, improve cash flow, and grow their business. Regular cost reporting allows subcontractors to identify potential issues early on, such as unexpected increases in labor or material costs. By comparing the amount earned to the amount spent for each element of the work, subcontractors can determine if they are making money and adjust their pricing for future tenders. Cost reporting helps subcontractors monitor their cash flow and plan for upcoming expenses, such as purchasing expensive materials. Keeping cost reporting simple and finding the right frequency (e.g., monthly) allows subcontractors to identify deviations from the planned course and make necessary corrections to stay on track. BEST MOMENTS "It's an enjoyable part of the month when things are going well, when things are going badly, it can be really, really stressful." "What you want to do is be able to monitor whether you're making money on items." "By doing it in this fashion, what we've done is identified an issue after just one month rather than letting it bumble on for a period of six nine months or whatever." "What you're seeing in this analysis is that the labor costs are a little bit higher than we were expecting, only marginally, but quite a lot more material costs have been incurred than what you would have earned and what the contractor is paying you for." "Hopefully I've shown you over the last 20 minutes or so how powerful that cost reporting can be and the benefits that you would get out of doing it on a regular basis." 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. LinkedIn - www.linkedin.com/in/jacob-austin/ Instagram - www.instagram.com/qs.zone/ www.linktr.ee/qs.zoneThis show was brought to you by Progressive Media

Get ready to unlock the secrets of NEC4, the groundbreaking engineering and construction contract! NEC4 isn't just a contract – it's a game-changer designed for collaboration in building and engineering projects. Jacob breaks down the six key options, unveiling a world of possibilities. But it's not just about contracts; it's about creating a web of trust and cooperation among all players. Hold onto your hardhats as Jacob delves into the nitty-gritty. From early warning notices to compensation events, he's got you covered. Need to adjust time and the program? Jacob's your go-to guru. Pricing compensation events and acceleration? Yep, he's got tips to keep your business soaring KEY TAKEAWAYS NEC4 is a set of flexible contracts for procuring buildings and engineering projects, commonly used in government procurement. The NEC4 contract emphasizes the need for all parties to act in a spirit of mutual trust and cooperation. Early warning notices are a risk management tool in NEC4 contracts, allowing parties to notify each other of potential issues before they become problems. Compensation events are matters that increase costs, delay completion, or impair the performance of the work, and must be notified within seven weeks. Pricing compensation events in NEC4 contracts requires careful consideration of direct works costs, prelims, management, and any time impacts, with a one-bite-at-the-cherry approach. BEST MOMENTS "The concept of an early warning notice is pretty bespoke to the NEC forum. It doesn't appear in the traditional JCT kind of contract and it's really there as a risk management tool." "The brilliant bit around this contract is that both the time and the cost are dealt with by the same event." "So the important thing about time is that you have the completion date, you have the planned completion date and you also have these other parts which are key dates." "The contract requires submission of a notice for any matter which increases the total of the prices, delays completion, delays meeting a key date or impairs the performance of the work." "The completion date remains as it was and it's that date that governs when things like damages might start to apply." 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. LinkedIn - www.linkedin.com/in/jacob-austin/ Instagram - www.instagram.com/qs.zone/ www.linktr.ee/qs.zoneThis show was brought to you by Progressive Media

  Today Jacob dives into the world of Contra Charges. Discover their real purpose, gain insights into profit protection amidst slim margins, and harness the power of evidence. Jacob's expert guidance unveils the strategy to handle issues pre-escalation and negotiate contract terms for limited liability. Tune in to equip yourself with the tools to navigate Contra Charges, safeguard profitability, and elevate your subcontracting game. KEY TAKEAWAYS Contra Charges are a contentious issue in the construction industry, but they are often necessary when a subcontractor causes damage or fails to perform. The burden of proof lies with the contractor to demonstrate that a breach of contract or damage has occurred, and that there has been a cost incurred as a result. It is important for subcontractors to challenge contra charges and request evidence of the breach and the cost incurred. In some cases, subcontractors can negotiate agreements with the party affected by the damage to avoid a formal contra charge situation. Subcontractors should consider including limitations of liability in their contracts and be willing to decline work if the risk of high contra charges or liquidated damages is too great. BEST MOMENTS "For there to be a situation where a Contra Charge is being levied or any kind of set off or abatement, it's got to a situation that nobody really wants to be in." "And a lot of the time it tends to be the way these things are communicated that cause the biggest issues." "So if there hasn't been any kind of breach, then there isn't grounds for a contra charge. And similarly, if there hasn't been any cost or any loss incurred, then there also isn't any grounds for a contra charge." "So they have to prove to you that they have the right to deduct that money." "If you know you've got a situation where a contra charge is going to happen, then it's sort of like why not take matters into your own hands and try and resolve it before it becomes this controversial issue." 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. LinkedIn - www.linkedin.com/in/jacob-austin/ Instagram - www.instagram.com/qs.zone/ www.linktr.ee/qs.zone   This show was brought to you by Progressive Media  

Imagine a world where payments flow like a smooth river. Jacob dives into the real deal, shedding light on the struggles subcontractors face with those pesky long payment terms and dreaded late payments. Brace yourself for insights that could save your cash flow and business mojo. Jacob's wisdom is your secret weapon against payment turmoil. He shines a spotlight on the domino effect of late payments and why paying subcontractors on time is the ultimate power move. Want to level up your payment game? Jacob's got your back with strategic gems: from deciphering payment terms to unraveling the contract sum, managing retentions, and acing final account procedures. KEY TAKEAWAYS Late payment is a prevalent issue in the construction industry, with over 52.9% of invoices being paid late in 2022. Cash flow is crucial for subcontractors, and late or non-payment can cause financial strain and affect their ability to meet financial obligations. It is important for subcontractors to understand the payment terms outlined in their contracts, including payment dates, breakdown of the contract sum, retentions, and final account procedures. Subcontractors can negotiate for better payment terms, such as shorter payment periods, to improve cash flow and incentivize suppliers to work with them. If subcontractors do not receive payment on time, they should follow a systematic approach, including sending reminders, issuing notices, and seeking professional advice if necessary, to ensure timely payment and protect their interests. BEST MOMENTS "Cash flow is critical for running a successful business and some of the construction industry's payment terms are absolutely unfriendly to cash flow." "A few years ago, a government report found that many people in the construction industry thought that late payment and non-payment is pretty much a norm." "More than half of all invoices sent to construction firms were paid late across 2022." "When a payment from a customer is delayed or not received at all, it's financial strain straight away." "Don't add late payment to the mix. Don't make that be something you can be criticized about." ABOUT THE HOST 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. LinkedIn - www.linkedin.com/in/jacob-austin/ Instagram - www.instagram.com/qs.zone/ www.linktr.ee/qs.zoneThis show was brought to you by Progressive Media

Think of Jacob as your time-travel mentor, revealing five essential steps to score that sought-after EOT. He spills the beans on crafting notices, tracking events, and presenting a rock-solid case for delays and costs. It's like having an EOT superhero by your side! With Jacob's practical wisdom, you'll not only shield your business but also foster positive contractor relationships. Tune in to become an extension of time whiz, and let Jacob navigate you through this intricate landscape. Your ticket to mastering time extensions and boosting your subcontracting game awaits! KEY TAKEAWAYS Issue a notice to raise awareness of potential delays: It is important to notify the contractor as soon as you become aware of an event that may cause a delay. This allows for collaboration and potential mitigation of the issue before it becomes a problem. Understand how and where to issue the notice: Refer to your subcontract to determine the specific requirements for issuing a notice. It may need to be in writing or via email, and there may be specific individuals or email addresses to send it to. Record all events and matters that cause or may cause delay: Keep detailed records of any events or issues that impact your ability to complete the work on time. This includes adverse weather, access delays, discrepancies in contract documents, and more. Present your claim clearly and concisely: When presenting your claim for an extension of time, keep it simple and factual. Use the evidence and information you have collected to support your case, and clearly explain the impact of each event on the project. Keep your notices and letters simple: Avoid overcomplicating your notices and letters. Keep them clear, concise, and focused on the specific issue at hand. This will make it easier for the recipient to understand and address the problem. BEST MOMENTS "A lot of subcontractors out there that I've worked with don't really get on board and engage with the extension of time provisions." "You want to use [good relationships] as a positive and a means to getting things settled rather than something that you're relying on and using as almost a reason not to follow the proper process or the proper procedure." "The contract really is looking for you to have a little bit of forward planning, a bit of foresight about what might hurt you and give notice so that something can be done about it." "Use it [the contract] to your advantage and fire in your notices and that will put you really on the front foot." "The time and the cost elements in the JCT contracts are separate to each other. Whereas under NEC these are one and the same thing." 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. LinkedIn - www.linkedin.com/in/jacob-austin/ Instagram - www.instagram.com/qs.zone/ www.linktr.ee/qs.zoneThis show was brought to you by Progressive Media

Imagine a world where changes are the norm. Jacob takes you on a journey through various change scenarios, from scope shifts to different work conditions. Hold onto your helmets as we demystify the JCT contract, your trusty guide through construction changes. Timing is everything, and Jacob's got the inside scoop on managing changes like a pro. Hint: detailed records are your new BFFs. Ever wondered about the art of valuing changes? Jacob's got your back with insights into pricing and cost calculation methods that will leave you feeling like a financial guru.   KEY TAKEAWAYS Changes in the construction industry can include changes in scope, quantity, or the way work is carried out on site. These changes can be a source of frustration and administration problems for subcontractors. The JCT contract is the most common contract in the construction industry and has provisions for handling changes. Clause 5.1 of the JCT contract defines changes as alterations or modifications to the design, quality, or materials of the works. Timing is crucial when it comes to changes. The cost and impact of a change can vary depending on when it is instructed. It is important for subcontractors to take records and assess the impact of changes on their work. Instructions from the contractor must be reasonable and within the subcontractor's capabilities. Subcontractors are expected to comply with instructions within seven days. Failure to comply may result in the contractor hiring someone else to complete the work and deducting the additional costs from the subcontractor's payment. Valuing changes can be complex and depends on factors such as the character of the change, whether conditions have changed, the quantity of the change, and the impact on time and cost. Different valuation methods, such as pro rata, fair rates and prices, or time and cost basis, may be used depending on the circumstances. It is important for subcontractors to understand the valuation mechanism and provide sufficient information and calculations to support their pricing. BEST MOMENTS "Changes can be changes in scope, changes in quantity or the way that work is carried out on site." "Timing is everything when it comes to changes." "If the conditions have changed, get your hand out for it, talk to your site manager about it, explain the issue and then confirm it back to them." "Valuing the change really could be its whole own episode and we will do that at a later time." "Make sure you provide enough information. Preferably you might want to look at marking up some drawings, providing copies of emails and instructions, any photos that you can take, any records that you've got of progress so that you can clearly demonstrate how much of your work has been affected by an instruction or a change." 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. LinkedIn - www.linkedin.com/in/jacob-austin/ Instagram - www.instagram.com/qs.zone/ www.linktr.ee/qs.zoneThis show was brought to you by Progressive Media

Discover the magic behind everyday agreements and how they shape our lives. From construction sites to your routine, Jacob simplifies the "holy trinity" of contracts. Jacob spills the beans on these essential elements in the construction world, showing you how to spot the stars: scope, design, specification, program, and price. Think of it as your recipe for contract success!  KEY TAKEAWAYS A contract is a type of agreement that involves an offer, acceptance, consideration, and legal intent. It can be verbal or in writing and is used to govern exchanges of goods or services. Subcontractors should carefully review the scope, design, and specification sections of their subcontract to ensure that they align with what was agreed upon during the pricing stage. Any discrepancies should be flagged and addressed before signing the contract. The program section of the subcontract should reflect the agreed-upon timeline for completing the work. Subcontractors should ensure that the program matches their pricing and that any sectional arrangements do not unfairly impact their entitlement to prolongation or additional costs. The price section of the subcontract should accurately reflect the pricing method (e.g., lump sum or remeasurement) and the quantities or items included. Subcontractors should check that the quantities are fair and reflective of the work before signing the contract. It is crucial for subcontractors to speak up and address any concerns or discrepancies in the subcontract before signing it. Having open and honest communication with the contractor can help prevent disputes and ensure that both parties are on the same page. BEST MOMENTS "So guess what I'm saying is these are things that we do every day and it shouldn't be something that scares us." "Don't get hudwinked into I can't put your payment on until you've signed it so you sign and return the order without checking." "Now's your chance to make sure it's right. So compare the revisions. Are the revisions the same? If they're not the same flag it up." "Flag it up. Talk about it. Call it out when you send the contract back." "And I can't stress this enough, if something doesn't look right, shout up, say your bit, at the very least have a conversation." ABOUT THE HOST 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. LinkedIn - www.linkedin.com/in/jacob-austin/ Instagram - www.instagram.com/qs.zone/ www.linktr.ee/qs.zone   This show was brought to you by Progressive Media  

In the first episode of "The Subcontractors Blueprint" podcast, host Jacob Austin looks to empower construction subcontractors with essential commercial skills. With the construction sector housing over a million small to medium enterprises, Jacob's goal is to equip subcontractors with tools and knowledge to mitigate risks, navigate contracts, and ensure profitability. Leveraging his 15 years of industry experience, Jacob highlights prevalent challenges subcontractors encounter, including subcontract management and payment comprehension. He commits to addressing contract adjustments, disputes, late payments, and furnishing practical insights bith through personal experience and future guests knowledge KEY TAKEAWAYS The Subcontractors Blueprint aims to upskill subcontractors in the construction industry by providing them with commercial skills, tools, and knowledge to protect themselves from risk and ensure profitability. Jacobhas 15 years of experience in the industry and has worked on various construction projects, ranging from small extensions to large-scale housing developments. One common issue among subcontractors is their inability to administer a subcontract effectively, leading to disputes and payment issues.  Future episodes will cover topics such as variations, contract amendments, payment notices, disputes, and late payments. It will provide practical advice and strategies for subcontractors to navigate these challenges and ensure fair treatment. Jacob will also be chatting with industry experts and successful contractors to share their insights, stories, and tips for success in the construction industry in the future. BEST MOMENTS "I want to give you the commercial skills, the tools, the knowledge that you need to protect yourselves from risk, to understand the contracts that you're working on, to make yourself a profitable business" "We see guys who have got great site presence, great management, they really know how to build, they're really competent, their safety's on point and they just can't administer a subcontract." "If you're just sending me a bill and I'm getting that and I'm going your progress doesn't match up with your expectations here, we're going to start arguing about how much things are worth quite quickly." "So you get a 300 odd page document, it's all bound together, it's got an official cover on it and you look at it, you don't even want to start reading it, it looks dull as shit to start off with." "Now I can't claim to be whiter than white and 100% clean and I've never paid anybody late ever, but there's one thing for me that you can always try and do is pay your supply chain on time."  ABOUT THE HOST 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. LinkedIn - www.linkedin.com/in/jacob-austin/ Instagram - www.instagram.com/qs.zone/ www.qs.zone/all-links