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