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

This week's episode - 80 of The Subcontractors Blueprint podcast is a rerun of Episode 19, in which Jacob Austin discusses the topic of Value Engineering and Whole Life Costing. He starts by defining these two phrases which are widely used in the industry. He then gives some historical context to value engineering and how it has evolved into what we know today. Jacob highlights some interesting reasons behind particular materials being specified and how these may affect the implementation of value engineering. He also gives some practical advice on how to deal with value engineering requests, what to do to avoid the risks and ensure the full impact is considered prior to proceeding. Throughout the episode, Jacob imparts his industry wisdom to help subcontractors manage the value engineering process.

KEY TAKEAWAYS:

• Value engineering is a process of buying the best performing product or output for the least financial outlay.
• When submitting value engineering options it is important to establish what is driving the selection of the specified products. Sometimes these are not obvious, and may come back to bite.
• If multiple performance requirements must be considered, they can be evaluated by the formula: Product Value = Function ÷ Cost
• A full spec or datasheet for any products you propose should be submitted alongside the price and ensure that the contractor and their architect review it in detail prior to committing to changing.

BEST MOMENTS:

"All it is is ripping out any value from a project and substituting it with cheap alternatives"

"In my experience how we implement it in construction is all to do with cost reduction"

"Sometimes the best savings can be quite radical"

"It just goes to show you never can tell what someone else is going to want and if you can, your skills are probably best employed somewhere else"

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 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 79 of The Subcontractors Blueprint podcast, host Jacob Austin is talking about aiming to secure work in a competitive market. Jacob tackles common bidding challenges, stressing the importance of crafting compelling bids that emphasise unique value propositions. He covers key topics such as writing effective bids by tailoring them to client needs and showcasing competitive advantages. Additionally, he discusses identifying and pricing risks through thorough risk assessments to prevent underbidding. Jacob also highlights the significance of tracking material prices and labor rates to stay updated on market conditions for accurate pricing. Furthermore, he advises using past experiences by leveraging data from previous projects to inform future bids and emphasises leveraging niche expertise to highlight specialised skills for a competitive edge.

KEY TAKEAWAYS:

• Challenges faced by subcontractors when bidding for projects
• Importance of writing effective and tailored bids
• Utilising niche expertise to gain a competitive edge
• Leveraging past project experiences to improve bid accuracy
• The significance of showcasing unique value propositions in bids
• Identifying and accurately pricing project risks

BEST MOMENTS:

"Winning a project isn't just about one job; it's about building relationships with main contractors and their project managers."

"Consider how each project can build your reputation, bring you more expertise, and help you strengthen your market position."

"Develop a standard tender checklist that should cover everything from reviewing the main contract conditions to the spec, the scope, and the program."

"Using past experience to inform your bids is vital; if you're not analysing that to refine your future bids, you're missing out on a huge learning opportunity."

"Bidding isn't about winning at any cost; it's about winning profitably and sustainably."

Link to the Cost Reporting Episode Mentioned in this Episode

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