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

In episode 78 of The Subcontractors Blueprint podcast, host Jacob Austin is speaks about the rising importance of sustainability clauses and environmental requirements in the construction industry. Jacob highlights the necessity for subcontractors to adapt their business models to meet these evolving demands while maintaining profitability. He discusses the implications of sustainability obligations in contracts, the benefits and challenges of implementing eco-friendly practices, and proactive strategies for subcontractors to address sustainability. By embracing sustainable practices, subcontractors can enhance their marketability, build stronger client relationships, and contribute to a more sustainable future in construction.

KEY TAKEAWAYS:

• Importance of sustainability in the construction industry
• Transition from optional to essential sustainability practices
• Compliance requirements for subcontractors regarding eco-friendly materials
• Proactive strategies for subcontractors to implement sustainability
• Challenges associated with adopting eco-friendly materials
• Opportunities for subcontractors to innovate and differentiate in a competitive market

BEST MOMENTS:

"If you want to keep winning lucrative contracts, particularly for government or large commercial organisations, then you need to tackle and address these green obligations head on."

"The tricky part is ensuring the cost for complying with those requirements is in your price. If not, you could face unexpected expenses."

"Implementing green measures often forces you to optimise your own processes, be that reducing materials or thinking about lean construction techniques which can boost your internal efficiency."

"Sometimes eco friendly materials have longer lead. In times, maybe they're not manufactured as often, or they come from smaller, more specialised suppliers."

"You might look at sustainability as a burden, but if you approach it in a strategic fashion, it can be a powerful tool for you to differentiate yourself in a competitive marketplace."

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 77 of The Subcontractors Blueprint podcast, host Jacob Austin is talking about the pivotal role of effective communication in the construction industry. Clear communication is essential for subcontractors, impacting relationships, project success, and the ability to secure repeat work. He discusses key communication tools such as RFIs, site instructions, and daily diaries, highlighting their importance in managing risks and ensuring clarity. Jacob also offers practical advice on maintaining professionalism, fostering a collaborative environment, and addressing issues proactively. This episode aims to equip subcontractors with strategies to enhance their communication skills, ultimately leading to better project outcomes and stronger contractor relationships.

KEY TAKEAWAYS:

• Importance of effective communication in the construction industry.
• Tools and practices for effective communication.
• Strategies for maintaining professionalism in communication.
• Fostering a culture of openness and respect within project teams.
• Proactive communication and planning to anticipate project needs.

BEST MOMENTS:

"Communicating effectively can save you more time, money, and stress than most pieces of plant and equipment on site."

"Being the organised subcontractor who always communicates clearly goes a long way to help you secure repeat work."

"A well-structured communication system will reduce confusion and potentially friction between you and other trades or the main contractor."

"Nothing can kill your time and morale on a project like a well-toned paper war or chain of email tennis."

"The defects liability or the rectification period can be the point that makes or breaks the client's perception of a contractor."

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 76 of The Subcontractors Blueprint podcast, host Jacob Austin is talking about Contra Charges in the construction industry. Jacob explains that contra charges are common law mechanisms to address damage or breaches of contract, not punitive measures. He covers key points such as the definition and context of contra charges, common reasons they occur, and the burden of proof required for disputes. Jacob also provides practical advice on handling contra charges, including maintaining detailed records, requesting evidence, and negotiating settlements. The episode emphasises proactive risk management and collaborative solutions to mitigate the impact of contra charges on subcontractors.

KEY TAKEAWAYS:

• Definition and context of contra charges in the construction industry.
• The burden of proof required for main contractors to justify contra charges.
• Practical advice for subcontractors on managing contra charges effectively.
• Emphasis on thorough documentation and communication throughout projects.
• Encouragement for subcontractors to be proactive in resolving issues to avoid formal contra charges.

BEST MOMENTS:

"If there's a charge, the chances are they've had to arrange for corrective works, or they've incurred some costs due to a problem that you have caused."

"The JCT forms, for example, literally don't say the word contra charge."

"The contractor has got to establish that there has been something that you've done that's contrary to the contract, or perhaps you failed to do something that you are obliged to do."

"Consider a pragmatic settlement. If the amount seems fair, or if you know that your team was at fault, dragging out the dispute probably isn't going to help."

"Documentation is your best friend. Firstly, knowing what your order documents say. But then those site documents, the photos, the diaries, the email trails, your program and progress monitoring."

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 75 of The Subcontractors Blueprint podcast, host Jacob Austin discusses the crucial topic of extensions of time clauses in construction contracts. He explains how these clauses protect subcontractors from liquidated damages and help manage project delays. Jacob provides practical advice on the procedures for applying for extensions, identifying relevant events, and understanding the implications of concurrency and time at large. He emphasises the importance of timely notifications, comprehensive record-keeping, and effective communication. This episode aims to equip subcontractors with the knowledge to enhance profitability, improve cash flow, and ensure business growth.

KEY TAKEAWAYS:

• Importance of extensions of time (EOT) clauses in construction contracts for subcontractors.
• Protection against liquidated damages due to project delays.
• Necessity of timely notification to contractors regarding potential delays.
• Importance of maintaining accurate and comprehensive records of delays.
• Procedures for applying for extensions of time and relevant events that justify them.

BEST MOMENTS:

"Liquidated damages are actually quite useful because it puts a finite answer on what that cost is, so that you can manage the risk accordingly."

"The extension of time procedure and the liquidated damages themselves are there to avoid that messy process and help all parties manage the risk and understand where they stand."

"If the delay is a natural event, as in something like the weather or something that is in nobody's control, then you would be entitled to more time, but you wouldn't be paid for the time."

"When you realise a delay is occurring or likely to occur, you have to give a notice."

"The notice serves a valuable purpose; it allows everyone to investigate and take records whilst memories are fresh."

"Concurrency is really difficult to prove, and it is also genuinely quite rare for there to be two overlapping events with equal effects that run genuinely concurrently."

Link to episode 14 referred to in this episode: Episode 14

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 74 of The Subcontractors Blueprint podcast, host Jacob Austin kicks off 2025 by guiding subcontractors through the intricacies of the JCT (Joint Contracts Tribunal) standard building contract. Jacob raises key topics including notices, handling provisional sums, and the timing of variation quotations. Jacob also stresses the critical nature of prompt notifications and meticulous record-keeping. By fostering clear communication and collaboration, subcontractors can navigate contractual complexities and achieve successful project outcomes. This episode is a must-listen for construction business owners aiming to enhance their financial success.

KEY TAKEAWAYS:

• Overview of payment structures under the JCT (Joint Contracts Tribunal) standard building contract.
• Handling of provisional sums and variations in contracts.
• Importance of proper documentation and communication.
• Valuing variations and establishing fair rates for new work.
• Emphasis on collaboration between subcontractors and contractors for successful project outcomes.

BEST MOMENTS:

"Reading clauses on payment can feel about as fun as a trip to the dentist. But this is about the most important part of the subcontract."

"From a subcontractor's perspective, having a good site record and keeping a watchful eye on your productivity is essential as well as a detailed remeasure of the finished job."

"For defined provisional sums, the tender documentation must provide enough detail about the nature, location, and the requirements of the item."

"If you are being delayed or disrupted, you have to notify the contractor promptly. This is a warning to tell them, look, something's going wrong."

"A collaborative approach is the best way when it comes to construction. We're all usually trying to build something in challenging situations."

"The subcontract entitlements that we've discussed today are a framework to underpin that collaboration rather than work against 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