In episode 88 of The Subcontractors Blueprint podcast, host Jacob Austin speaks about the critical importance of effective contract management in the construction industry. He explains how good contract management is essential for profitability, cash flow, and project success. Jacob emphasises clarity on obligations, accountability, transparency, collaboration, and risk allocation within contracts. He provides practical advice for subcontractors on managing contracts to avoid disputes and foster positive working relationships. Key takeaways include the need for clear documentation, early issue resolution, and maintaining accurate records. Jacob encourages subcontractors to view contracts as essential tools for daily decision-making and successful project delivery.

KEY TAKEAWAYS:

• Importance of effective contract management in the construction industry
• Clarity of obligations and responsibilities within contracts
• Necessity of accountability and transparency in contract execution
• Role of collaboration and open communication in preventing disputes
• Importance of appropriate risk allocation between parties
• Use of industry-standard contracts for fairness and balance
• Need for clear documentation and setting expectations early

BEST MOMENTS:

"A well-crafted contract is intended to be fair and balanced, allowing both parties to deliver the project as agreed."

"Good contract management starts with reading that document and understanding those gray areas before they explode into big claims and disputes."

"The contract is just paper unless the people managing it have got the skills and the systems to back it up."

"Know your contract thoroughly. It might sound obvious, but many folks only half read it or rely on what people have told them."

"Communicating often and early: leaving issues to fester creates bigger problems than nipping them in the bud."

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 87 of The Subcontractors Blueprint podcast, we take a deep dive into the intricate subject of retentions! Jacob conducts a comprehensive discussion on the manifold challenges and exasperations retentions can pose for subcontractors. This episode serves as a repository of invaluable insights and pragmatic guidance for subcontractors grappling with the intricacies of retention in the construction industry.

KEY TAKEAWAYS
• Retentions are a small percentage (typically between 1.5% to 5%) held back from the payment of completed work on a project. This money is withheld from the contractor and subcontractor to ensure that any defects or issues are addressed before the full payment is made.
• Retentions are typically released in two stages: the first half is released upon achieving practical completion, and the second half is released after the defects liability period. Subcontractors need to ensure that their works are snag-free and that they obtain a practical completion statement to mark the completion of their work.
• It is common for contractors to hold onto retentions for longer than they should, causing delays in payment for subcontractors. Subcontractors should be proactive in monitoring and chasing their retentions to ensure timely payment.
• The Construction Act prohibits the linking of the main contract to the subcontract in terms of retention release. Once the subcontractor's defects liability period is up, they have the right to be paid the retention, regardless of whether the contractor's defects liability period is complete.
• Subcontractors should consider negotiating a retention cap with the contractor if they have a good working relationship. This allows for increased cash flow while still providing the contractor with some security for potential defects. However, a retention cap should be negotiated on an individual basis and should not compromise the quality of the subcontractor's work.

BEST MOMENTS
"So it's a small percentage, typically between 1.5 to 5%, which is held back from the payment of completed work on a project."
"Stopping the retention is just something that needs to be done to keep the contractor in the black."
"You're effectively leaving a cash flow hole that isn't going to get any better until you do something about it."
"The whole of the subcontract supply chain is likely in the same boat as you."
"If you're increasing your price, you're effectively costing yourself and the taxpayers out there."

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 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.

In episode 86 of The Subcontractors Blueprint podcast, host Jacob Austin explores the key differences between the JCT 2024 and JCT 2016 contracts. He discusses updates in design liability, communication methods, dispute resolution, payment provisions, and new clauses on sustainability and building safety. Jacob emphasises the importance of subcontractors understanding these changes to manage risks and ensure profitability. He advises listeners to update their contract templates and practices to align with the new JCT 2024 standards. This episode provides essential insights for subcontractors aiming to stay competitive and successful in the evolving construction industry.

KEY TAKEAWAYS:

• Differences between JCT 2024 and JCT 2016 contracts
• Updates in terminology and procedural changes
• Changes in design liability standards
• Modernisation of communication methods (email and electronic signatures)
• Introduction of early dispute notification and resolution processes
• Clarification of payment provisions and termination payments
• New clauses related to sustainability in construction
• Compliance with the Building Safety Act

BEST MOMENTS:

"Email is finally in. So in JCT 16 formal notices often had to be on paper... But now in the 24, for the majority of notices are able to be sent by email."

"Parties now need to work in a cooperative and collaborative manner, in good faith and in a spirit of trust and respect."

"The important thing that you need to do here is to ensure that your team understands what the legislation is, and what you need to do to comply with it."

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 85 of The Subcontractors Blueprint podcast, host Jacob Austin is talking about the Building Safety Act (BSA) of 2022, a pivotal reform in construction regulatory and building safety law following the Grenfell Tower tragedy. Jacob outlines the new roles and responsibilities for subcontractors, emphasising the importance of compliance and documentation. He discusses the increased scrutiny from local authority inspectors and the need for thorough paperwork, especially for design work. Jacob also highlights the impact on high-rise residential buildings and the necessity of coordination with accountable persons. The episode provides practical advice on adapting to these changes and leveraging technology to streamline compliance efforts.

KEY TAKEAWAYS:

• The significance of the Building Safety Act (BSA) in construction safety law.
• Introduction of new roles and responsibilities for principal designers and principal contractors.
• Implications of the BSA for subcontractors, including compliance and documentation responsibilities.
• Increased scrutiny and enforcement of compliance by local authority inspectors.
• Impact of the BSA on high-risk buildings and the role of the Building Safety Regulator (BSR).
• Resources available for subcontractors to navigate the changes and ensure compliance with the BSA.

BEST MOMENTS:

"The Building Safety Act 2022, known as BSA, is a landmark piece of legislation overhauling building safety regulation."

"The big theme of the act is accountability."

"It's no longer acceptable to rely on building control to catch mistakes or to assume safety is someone else's job."

"The law now expects a team effort rather than the siloed approach of old."

"It's taking really seriously a disaster that's happened and trying to prevent a similar thing from happening again."

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 84 of The Subcontractors Blueprint podcast, host Jacob Austin dives into conflict avoidance in the construction industry, focusing on the RICS Conflict Avoidance Process (CAP). Jacob underscores the importance of proactive conflict resolution to prevent disputes from escalating into costly legal battles. He explains how the CAP works, its benefits for subcontractors, and the significance of maintaining collaborative relationships with main contractors or clients. By incorporating CAP into contracts, subcontractors can save money, reduce stress, and improve project outcomes, fostering a more cooperative and efficient working environment.

KEY TAKEAWAYS:

• RICS (Royal Institution of Chartered Surveyors) Conflict Avoidance Process (CAP)
• Proactive conflict resolution to prevent disputes.
• Steps involved in the CAP process and the role of impartial experts.
• Advantages of early conflict resolution and speed of the CAP.
• What to do if CAP is part of your next project.
• Encouragement for subcontractors to incorporate CAP clauses in contracts where possible.

BEST MOMENTS:

"Litigation, adjudication and arbitration might solve the dispute, but they typically leave both parties drained of time and, of course, money."

"CAP is here to flip the script and introduce proactive conflict resolution instead of waiting for a meltdown."

"Transport for London has tested CAP on about 20 projects and found big savings in avoided claims."

"The clue with this process is in the name conflict avoidance process. So this is about dealing with problems as soon as they appear."

"It's the difference between nipping a weed in the bud versus hacking through a full grown, thorny bush."

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 83 of The Subcontractors Blueprint podcast, host Jacob Austin is speaks on the CIC BIM Protocol, crucial for managing Building Information Modelling (BIM) design processes in construction projects. Jacob emphasises the importance of understanding the protocol's structure, key clauses, and common pitfalls. He highlights the need for subcontractors to be aware of their obligations, the implications on their liability, and the significance of proper documentation and training. By mastering these elements, subcontractors can enhance collaboration, efficiency, and their overall success in the increasingly digital construction industry.

KEY TAKEAWAYS:

• Introduction and purpose of the CIC BIM Protocol.
• Structure and components of the BIM Protocol, including key clauses.
• Importance of the BIM Responsibility Matrix for subcontractors.
• Obligations of subcontractors and employers under the BIM Protocol.
• Common pitfalls subcontractors face when engaging with BIM.
• Practical tips for subcontractors to effectively implement the BIM Protocol.

BEST MOMENTS:

"The ultimate goal is fewer mistakes, better coordination, and clearer digital collaboration across the project."

This puts a clear obligation on you to actively engage in the coordination process, not just passively, to receive instructions."

"This is trying to give the members of the project the ability to rely on your data, but limiting your liability if they modify it or start misusing it for something beyond the project scope."

"The BIM process is incredibly useful and it's really collaborative, but it can also be really rigid."

"Ignorance is not bliss. Ignorance is going to get you a contra charge."

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

n episode 82 of The Subcontractors Blueprint podcast, host Jacob Austin is discussing the transformative impact of technology in the construction industry. He delves into Building Information Modelling (BIM), drones, and digital sign-off technologies, emphasising their potential to streamline processes, improve efficiency, and boost profitability for subcontractors. Austin offers practical advice on integrating these tools, such as designating team members to manage project information and leveraging digital platforms for better version control and communication. He underscores the importance of adopting these advancements wisely to enhance operations and stay competitive in an increasingly digital landscape.

KEY TAKEAWAYS:

• Impact of technology on the construction industry
• Challenges associated with adopting new technologies
• Importance of centralised platforms for managing project information
• Practical tips for navigating digital tools and platforms
• Advantages of digital sign-off processes over traditional methods
• Need for strategic evaluation and integration of new technologies in operations

BEST MOMENTS:

"One report found projects using common data environments had a 20% shorter project duration and 30% lower overall costs."

"Drones can do these kinds of tasks in minutes, not only saving time, but improving safety."

"BIM isn't just a fancy 3D model, but a process that integrates design, quantities, scheduling, and programming into a shared digital space."

"No technology fixes a bad process, so you need to integrate these tools wisely."

"Embracing technology in construction can be a bit like going to the gym... stick with it and you'll come out faster, stronger, and maybe even wondering why you didn't start sooner."

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 81 of The Subcontractors Blueprint podcast, host Jacob Austin is explores the distinctions between large and small construction projects. He advises subcontractors on tailoring their commercial strategies to different project scales, emphasising profitability, cash flow management, and contract comprehension. Jacob discusses the complexities and risks of large projects, such as high-rise buildings, versus the quicker turnarounds and steady cash flow of smaller projects. He also highlights the importance of internal capabilities, marketing, and risk management. The episode aims to help subcontractors make informed decisions about the types of projects that best align with their business models.

KEY TAKEAWAYS:

• Adjusting commercial strategies based on project scale
• Timeframes for project completion and their impact on finances
• Complexities and risks associated with big versus small projects
• Cash flow management and profitability considerations
• Marketing benefits of working on large projects versus smaller projects
• Hybrid approach to project selection for financial stability and diversification

Link to the Cost Reporting Episode Mentioned in this Episode

BEST MOMENTS:

"The bigger and the more educated your client is, the more likely they are to try and tilt that contract in their favour."

You need to do your due diligence not just on the contract that you're appointed under, but on the client themselves that's going to pay the bills."

"Smaller projects might have less absolute risks. There's less people to impact if things go wrong, and that means less greedy mouths to feed when it comes to things like contra charges."

"Cash flow is really important to your business, so consider before you commit to doing a job that you can see it through to the end and remain financially stable."

"Don't be afraid to carve out a niche in one area if that's where you particularly excel, or perhaps maintain a smart blend."

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