The Subcontractors Blueprint

In episode 112 of The Subcontractors Blueprint podcast, host Jacob Austin  provides construction business owners with practical guidance on navigating the JCT 2025 Target Cost Subcontract (TCC). He explains the key differences from fixed price contracts, highlights the importance of accurate pricing, contingency planning, and open book accounting, and addresses challenges such as disallowed costs, payment complexities, and cash flow management. Jacob emphasises negotiation strategies, meticulous record-keeping, and building trust with main contractors to protect margins and ensure profitability. The episode equips subcontractors with actionable insights to manage risk and grow their business under JCT TCCs. KEY TAKEAWAYS:  Target cost contracts shift risk and reward from a fixed price model to a shared, open book approach.  Subcontractors must be meticulous with pricing, record-keeping, and understanding allowable costs to protect their margins.  Open book requirements increase administrative workload and introduce the risk of disallowed costs if not properly documented.  Pain and gain share mechanisms can impact both cash flow during the project and final profit or loss at completion.  Misunderstandings or mismanagement of target cost contracts can lead to disputes, so clarity and ongoing forecasting are essential.  Success with target cost contracts relies on transparency, realistic risk assessment, and collaborative negotiation of terms. BEST MOMENTS: "Target costs aren't inherently good or bad at all. They're just a contract. They're a tool. They're a means to an end." "The number one rule is get it right before site. You want a target that is realistic and achievable, not a fantasy lowball number that's going to set you up to fail." "Ambiguity today is a potential dispute tomorrow and that's what we want to avoid." "Records, records, records. It's not glamorous, but it's got to be done to de-risk your payment and get your hands on your money." "Shared risk means if something is genuinely unforeseeable, you're not alone in carrying the can for the cost of it." "If you fail to document ten grand’s worth of costs, that could quickly become non-recoverable and come directly out of your profit."   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 111 of The Subcontractors Blueprint podcast, host Jacob Austin reviews the new JCT Target Cost Subcontract 2024. He explains the fundamentals of target cost contracts, focusing on open book accounting, pain and gain share mechanisms, and contract flexibility. Jacob highlights the importance of detailed cost tracking, confidentiality, and proper management of contract adjustments. He also discusses the increased administrative demands of these contracts. The episode sets the stage for part two, which will cover risks, pricing strategies, and margin protection for subcontractors working under target cost agreements. KEY TAKEAWAYS:  The episode introduces the new JCT Target Cost Subcontract 2024 and its relevance for subcontractors.  Target cost contracts involve agreeing a target price, with actual costs reimbursed plus a fee, and differences shared between parties.  Pain/gain share mechanisms incentivise efficiency but also limit the potential for extra margin and increase risk if costs overrun.  These contracts require open book accounting, detailed record-keeping, and clear definitions of allowable costs.  The TCC sub is flexible but brings extra administrative workload and complexity, especially in managing cash flow and risk.  Next week’s episode will cover key risks, challenges, and strategies for pricing and protecting your margin under target cost contracts. BEST MOMENTS: "It's not the whole hog of cost reimbursement, but it asks the contractor to take a degree of risk in setting a lump sum price that they've then got to come in with a pretty narrow window of hitting in order to make any extra margin on it." "The idea is to get everybody aligned and pushing for the same outcome—everybody benefits from finishing cheaper, everybody suffers if it ends up pricier." "In effect, you lose 1% of your contract sum for every percent you go over the target." "Other common features of target cost contracts include an open book approach and pre-agreed definitions of allowable costs." "As the JCT puts it itself, the ethos of a target cost contract is risk sharing in a way that both the employer and the contractor can benefit from their joint efforts for a successful outcome."   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 110 of The Subcontractors Blueprint podcast, host Jacob Austin brings you his Autumn ‘Case Law Coffee Break in which he reviews key UK construction law cases from April to September 2025. He covers crucial topics for subcontractors, including payment disputes, adjudication enforcement, contract variations, extensions of time, and liability for defective work. Jacob explains recent court decisions, highlights the importance of timely notices and precise contract language, and discusses the impact of the Building Safety Act. The episode offers practical legal insights to help construction business owners protect their interests, ensure prompt payment, and manage risk in today’s evolving legal landscape.   KEY TAKEAWAYS:  The Technology and Construction Court (TCC) and recent case law reinforce the “pay now, argue later” principle, making timely payment mandatory if proper notices aren’t issued, regardless of ongoing disputes.  Challenging adjudicators’ decisions is only possible in exceptional circumstances; courts will generally enforce their rulings to maintain cash flow and avoid unnecessary delays.  Written instructions—including informal emails—can constitute valid contract variations if they clearly communicate changes, as courts prioritise substance and intent over technicalities.  Settlement agreements resolving disputes within ongoing projects are usually treated as variations to the original contract, meaning existing adjudication clauses still apply.  The Court of Appeal clarified that “if X, then Y” notice clauses in contracts are binding conditions precedent: parties must strictly comply with notification requirements to preserve or enforce rights, as seen in the DBS v Tata case.  A Supreme Court ruling confirmed developers can recover defect remediation costs from consultants even after selling the property, especially where public safety is at stake, and highlighted the extended liability periods under the Building Safety Act 2022. BEST MOMENTS: "If you don’t issue those required notices, you must pay the notified sum first before quibbling over the true value." "The bar for challenging an adjudicator’s decision is high and they’ll enforce adjudicators’ decisions in all but exceptional circumstances." "Variation clauses shouldn’t be applied overly technically—it’s about the effect and the intent of the instruction, not whether it uses the word 'variation.'" "If a clause says ‘if X you shall do Y,’ then the courts are likely to enforce it as a strict condition precedent to your rights." "Quality and safety responsibilities need to be taken absolutely seriously, because they can come back to haunt you decades later."   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 109 of The Subcontractors Blueprint podcast, host Jacob Austin breaks down the current landscape of England’s housing pipeline, examining government targets to deliver 1.5 million new homes and the latest planning reforms designed to accelerate small and medium-sized developments, the recent decline in housebuilding rates, persistent planning delays, and the impact of building safety regulations—particularly for high-rise projects. Jacob highlights new opportunities arising from government-backed projects, frameworks, and funding initiatives that favour SMEs and MMC expertise. He also covers the importance of understanding NEC contracts, the benefits of “meet the buyer” events, and how to get noticed by main contractors. Tune in for practical tips to boost your visibility and win more work in a shifting market—plus Jacob’s candid take on the political and financial factors shaping the future of housebuilding in England. KEY TAKEAWAYS:  The UK government has ambitious targets for new housing, but actual completions are down and planning delays persist, especially for high-rise projects.  Recent reforms aim to speed up planning for small (up to 9 homes) and medium (10–49 homes) sites, with a focus on supporting SME subcontractors and MMC (Modern Methods of Construction).  Subcontractors should track local planning approvals and approach SME developers early, offering their services and demonstrating relevant experience.  High-rise residential work faces delays due to building safety regulations; subcontractors must strengthen their quality, competence, and compliance documentation.  Government-funded projects increasingly require compliance with new standards (like CAS) and MMC expertise; up-skilling your team and showcasing relevant experience is important.  Public sector frameworks and funding are creating new opportunities for SMEs, with improved payment terms (30 days) and more SME-friendly procurement processes. BEST MOMENTS: "The direction of travel is clear: Ministers want to put builders, not blockers, first, and they've promised to overhaul planning and unlock stalled sites." "Since the Labour government took office in 2024, the number of new homes recorded in England has fallen year on year, with one report suggesting a 10% drop in the rate of housebuilding." “Being an SME is a selling point in its own right these days." "If you've got that expertise in-house, then you can use that again as a selling point—perhaps develop some case studies that back your own abilities to work hand in hand with those MMC installers." "I might be adding two and two together and getting seven, but I suspect some political forces are at play here, and I wouldn't be surprised if the same is going to happen to our housing market.”   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 108 of The Subcontractors Blueprint podcast, host Jacob Austin covers the crucial topics of program float ownership and concurrent delay clauses in JCT subcontracts. He explains the risks subcontractors face when float ownership isn’t defined and how recent contract amendments can shift delay risks onto subcontractors. Jacob also discusses the impact of concurrency exclusions and offers practical advice on contract negotiation, program management, and risk mitigation. This episode equips construction business owners with essential knowledge to better protect their interests and profitability in today’s complex contracting environment. KEY TAKEAWAYS:  Float ownership and concurrent delay clauses can significantly impact subcontractor’s risk and liability.  Float refers to spare time in a program; under standard JCT contracts, float is unallocated, but amendments often allow contractors or employers to claim it, disadvantaging subcontractors.  Concurrent delay occurs when both the subcontractor and contractor/client cause overlapping delays; industry practice (the Malmaison approach) typically grants time but not money for these.  Recent contract amendments increasingly exclude extensions of time for concurrent delay, shifting all risk onto subcontractors and exposing them to damages even when not fully at fault.  Subcontractors are advised to carefully review and negotiate contract terms related to float and concurrency before signing, to avoid hidden risks.  Proactive program management, timely notices, and potentially pricing in risk can help subcontractors protect themselves from unfair contract amendments. BEST MOMENTS: "Industry practice has generally treated float as a shared project resource—whoever finds it first gets to use it." "Employers and main contractors have been dropping similar concurrency exclusion clauses into their contracts, and that decision has changed the game." "Heads the contractor wins and it's tails you lose." "Read your subcontracts to understand whether these kind of amendments are being made... here's your weekly reminder to read your subcontract before you sign it." "These aren't legal abstract toys that we're talking about. These are actual mechanisms that decide who pays for time."   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 107 of The Subcontractors Blueprint podcast, host Jacob Austin reviews the key changes in JCT 2024 subcontracts, noting that while the update brings improvements like good faith duties and digital notices, main contractors are amending terms in ways that often increase subcontractor risk. He highlights areas such as stricter notice procedures, shorter extension of time windows, creeping design obligations, and tweaks to payment, damages, and design related roles. Jacob urges subcontractors to watch for hidden risks in amendments, ensure compliance, and keep thorough records to protect their interests under the new JCT 24 framework.   KEY TAKEAWAYS:  JCT 2024 is an evolutionary update, adding good faith duties and enabling email/e-signing for notices.  Main contractors are amending subcontracts in ways that often increase risk for subcontractors.  Tighter extension of time timescales mean subcontractors must keep excellent records and respond quickly.  Watch for “fitness for purpose” design obligations sneaking in, as they can invalidate PI insurance.  Liquidated damages and payment terms are being tweaked, so review caps and compliance with the Construction Act.  Some amendments try to shift building safety duty holder roles onto subcontractors, raising compliance risk. BEST MOMENTS: "The introduction of a spirit of trust and respect doesn't mean you shouldn't respectfully gather your records and submit notices when you need to." "If it's not a valid notice, you probably lose the claim." "Any whiff of fitness for purpose can strip out the validity of your PI insurance, especially with fire and cladding exclusions." "This is your opportunity to have a sensible conversation with the contractor about what they should be able to deduct from you if you get things wrong." "The standard form might be the pitch. The schedules of amendments are where someone quietly moves the goalposts, narrows the crossbar and increases the size of the goalkeeper's hands."   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 106 of The Subcontractors Blueprint podcast, host Jacob Austin concludes a mini-series on scaling subcontracting businesses by winning larger projects without overstretching. Aimed at construction business owners, this episode highlights seven common pitfalls SME subcontractors face—such as cash flow issues, program overruns, and quality control—and offers practical strategies to avoid them. Haile emphasises the importance of planning, monitoring, communication, and reputation management, providing actionable advice to help subcontractors grow sustainably and confidently tackle bigger contracts while maintaining strong industry relationships.   KEY TAKEAWAYS:  Taking on bigger projects can boost growth for SME subcontractors, but comes with significant risks and challenges.  Cash flow bottlenecks are the most common pitfall, so proactive planning and prompt billing are essential.  Program overruns and poor cost tracking can erode profits—monitor progress and costs closely to stay on course.  Don’t overstretch by juggling too many large projects at once; know your limits and build capacity gradually.  Maintain strict quality control and thorough paperwork to avoid costly rework, disputes, and legal issues.  Reputation matters—handle setbacks professionally and focus on building trust to unlock future big opportunities.   BEST MOMENTS: "Revenue is vanity. Profit is sanity. Cash is reality." "You can't make adjustments if you don't know you're off course." "Little mistakes can multiply. If your quality control isn't right, you could end up having to rework or spending a lot of time with excessive snagging." "Don't let short term desperation undermine your reputation." "Many large contractors are actually keen to bring small and medium enterprises up through the ladder and up into bigger work." 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 105 of The Subcontractors Blueprint podcast, host Jacob Austin shares practical strategies for subcontractors tackling larger projects. He covers key areas such as workforce planning, hiring, supervision, supply chain management, quality control, cash flow, and leveraging technology. Jacob breaks down how to scale your team, manage suppliers, control costs, and maintain profitability as your business grows. The episode offers actionable advice to help construction business owners navigate the complexities of bigger contracts, avoid common pitfalls, and build a sustainable, high-performing operation. Perfect for subcontractors aiming to grow their business with confidence and control. KEY TAKEAWAYS:  Workforce Planning: Assess your current team’s capacity and consider options like hiring, using agency labour, or sub-subcontracting to meet the demands of larger projects.  Supervision and Training: Ensure you have adequate supervisory staff and invest in upskilling or training to handle increased complexity and compliance requirements.  Avoiding Burnout: Delegate tasks, avoid overextending your core team, and consider hiring admin support to keep key staff focused and prevent burnout.  Managing Labour Costs: Plan and budget for increased wages and incentives, and explore non-financial benefits to attract and retain talent without eroding profit margins.  Supply Chain and Logistics: Communicate with suppliers about increased needs, plan for storage and delivery logistics, and ensure quality and reliability as order volume grows.  Cash Flow and Systems: Monitor cash flow gaps, make use of technology for project management, and rigorously track costs to inform future pricing and avoid financial pitfalls. BEST MOMENTS: “One mistake with scaling your business is waiting until you’re absolutely desperate to hire and then taking whoever’s available, even if they’re underqualified or they’re a bad fit for your business.” “A knowledgeable, happy workforce is more productive and you’ll need more productive when you get working on a bigger job.” “It’s all the more important when projects are bigger and more complex, to track costs and collate information in a way that you can learn from it and inform future tenders.” “Burnout can be real. A common pitfall for SMEs taking on big work is that the core team start working crazy hours trying to keep up with the demands of a job.” “With good planning and good management, what you’ll find is that your small team can achieve mighty things.”   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 104 of The Subcontractors Blueprint podcast, host Jacob Austin celebrates two years of the podcast and continues his mini-series on business growth for subcontractors. He provides practical guidance on commercial and contractual considerations when taking on larger projects, including contract terms, insurance, bonds, safety, and quality standards. Jacob highlights the importance of understanding every contract detail, managing risks, and staying compliant with industry trends like sustainability and local supply chain commitments. The episode is packed with actionable advice to help construction business owners protect profitability and successfully scale their operations.   KEY TAKEAWAYS:  Larger projects bring more complex contracts and higher risks for subcontractors.  You must read and understand your contract!  Always understand your contract’s scope, timeline, and payment terms before signing.  Proper documentation and following procedures are essential for getting paid and managing changes.  Ensure you have the right insurance, bonds, and safety accreditations for bigger jobs.  Focus on quality, safety, and social value as bonus points to win work and grow your business.   BEST MOMENTS: "If you look for nothing else when you read the contract, look for the Holy Trinity: What am I doing? When have I got to do it by, and how much do I get paid and when?" "Winning a larger project isn’t just about doing more work—it often will mean signing up to more complex contracts and fulfilling more commercial requirements." "There is no benefit to be gained in rigidly sticking to what you want to do if it doesn’t get you paid." "Change is the only constant, and that makes it vital for you to know how to deal with it when it happens on your job." "Demonstrating good safety and coordination will mark you as a reliable partner for the contractor on future work, particularly if you underpin that by delivering."   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, and Kier. 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 103 of The Subcontractors Blueprint podcast, host Jacob Austin breaks guides UK subcontractors through the essentials of scaling up to larger projects. He outlines six key indicators of readiness, including financial health, team capacity, and robust safety practices. Jacob also shares practical risk management strategies, from project selection and pricing to contract review and insurance requirements. Emphasiwing the value of professional advice, he encourages listeners to approach growth with careful planning and risk awareness. This episode kicks off a mini-series focused on helping subcontractors achieve sustainable, profitable expansion in the construction industry. KEY TAKEAWAYS:  Importance of quality workmanship in the UK construction industry  Know the signs your subcontracting business is ready to take on larger projects.  Plan cash flow, maintain capital reserves, and price jobs realistically to manage financial risks.  Do thorough due diligence on clients and contracts to avoid payment and liability issues.  Create detailed project plans and scale up safety and compliance for bigger jobs.  Ensure adequate insurance, understand bonding, and seek expert advice when needed. BEST MOMENTS: "Bigger projects mean bigger contracts, more prestige, and hopefully bigger profits. But—and it’s a big but—they also mean bigger risks and bigger challenges and bigger risks.” "It’s okay to be out of your comfort zone, but you don’t want to be out of your depth." "If a project isn’t priced to make a reasonable profit, it can actually harm you, not grow your business." "It’s better to set a realistic program up front than agree to a fantasy program and fail." "When it comes to compliance, you need to scale up your professionalism to match the project."   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 and Kier. 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 of The Subcontractors Blueprint - number 103 is a revisit of episode 25 in which Jacob Austin explores construction defects and their effects on subcontractors. He clarifies the difference between patent defects, which are obvious and detectable, and latent defects, which are concealed and may emerge long after completion. Jacob advises on the importance of using quality materials, skilled labor, and taking immediate action to fix defects to prevent further complications or safety issues. He also discusses the consequences of not adhering to construction standards and the role of the clerk of works in defect detection. The episode wraps up with a discussion on the liability of subcontractors for damages caused by defects. KEY TAKEAWAYS There is no firm definition of what a ‘defect’ is in construction contracts. The importance of being proactive in identifying and rectifying issues during the defects liability period is highlighted, along with the role of attention in ensuring work completion. The difference between latent and patent defects using a crack on a wall as an example and the implications of each type. Common causes of latent defects, are design and manufacturing faults, and cutting corners whilst undertaking the work The possibility of liability for damages resulting from defects and the considerations related to corrective actions and improved specifications.   BEST MOMENTS: "We had the client's clerk of works coming around, taking great delight in telling us that we've got a problem. Oh no, the building is going to fall down!" "Now that happened while we were on site. You could say that we were actually lucky that we were still there." "There are some factors that can contribute: you've got poor workmanship, either by using poorly qualified staff or staff that are on too keen a price, so they're cutting corners and leaving things not properly finished."   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, and Kier. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to over £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 102 of The Subcontractors Blueprint podcast, host Jacob Austin breaks highlights the vital role of quality workmanship in UK construction. He explains how high standards drive profitability, legal compliance, and reputation, referencing real-world cases and new regulations like the Building Safety Act 2022. Jacob shares practical, scalable quality control methods—such as checklists, sign-off sheets, peer reviews, and technology—tailored for small and medium subcontractors. He illustrates the risks of poor quality and the business benefits of consistent excellence, emphasising that delivering quality is essential for repeat business, client trust, and long-term success in today’s competitive construction industry. KEY TAKEAWAYS:  Importance of quality workmanship in the UK construction industry  Financial implications of poor quality work, including costs and legal risks  Practical quality control methods for small and medium-sized subcontractors  Role of technology in enhancing quality control processes  Strategies for fostering a culture of quality within subcontracting teams BEST MOMENTS: "If you think good quality is expensive, then try poor quality. And in construction, that's truer than ever." "You either control the quality on your build, or it will control you in the form of callbacks, defects, and complaints." "Failing to meet quality expectations risks ruining your reputation and your opportunities for repeat business, as clients will rightly look elsewhere to protect their scores." "Your last job has always got to be seen as your calling card for the next job. Make sure that calling card has a five star rating on it." "Quality equals reputation equals opportunity. Every site is an opportunity to prove your quality. Do it well. And people remember."   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 101 of The Subcontractors Blueprint podcast, host Jacob Austin breaks down the four essential insurance policies every UK subcontractor needs: Employers’ Liability, Public Liability, Professional Indemnity, and Contractors’ All Risks. He explains each policy’s coverage, legal requirements, and common pitfalls, offering practical tips for compliance and risk management. Jacob also discusses how major global events have impacted insurance premiums and availability. This episode provides actionable advice to help construction business owners protect their companies, stay compliant, and navigate the complexities of the insurance market. KEY TAKEAWAYS:  Early warning process and its significance  Compensation event process and its implications  Importance of timely notifications in contract management  Consequences of failing to adhere to notification obligations  Procedures for notifying early warnings and compensation events BEST MOMENTS: "One fire, one fall, one design error can leave you staring at a claim that's worth more than your annual turnover, so insurance is there as the shock absorber that stops the impact from smashing straight into your bank account." "Clients, main contractors and UK law all expect you to have the right protection in place, and they'll want to see the certificates before you're allowed on site or be paid a penny." "If your scope includes ‘design’, ‘detail’, ‘select’ or ‘specify’ in some shape or form, then you will need PI." "There is a bit of a trap to be wary of with PI, and that is that claims operate on a claims made basis, so the policy must be in force when the claim lands, not when the work was done." "If you're not carrying contractors all risk insurance, then you're rebuilding on your own cost, and you're risking delay damages for the period that you light."   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, and Kier. 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 100 of The Subcontractors Blueprint podcast, host Jacob Austin explores the NEC4 Engineering and Construction Subcontract’s change management processes. Focusing on the early warning and compensation event procedures, Jacob highlights the importance of proactive communication, timely notifications, and understanding time bars. He explains how these processes help subcontractors manage risk, secure fair compensation, and avoid disputes. The episode offers practical advice for construction business owners on navigating NEC4 contracts, emphasising the need for diligence and collaboration to ensure project profitability and success. KEY TAKEAWAYS:  Early warning process and its significance  Compensation event process and its implications  Importance of timely notifications in contract management  Consequences of failing to adhere to notification obligations  Procedures for notifying early warnings and compensation events BEST MOMENTS: "Early warnings aren't about apportioning blame. They're about avoiding nasty surprises that cost everybody money." "In this context, silence can mean yes, it's one of the only times in contracting that it can." "If you wait too long to notify an event, you could lose your right to any compensation." "The rationale behind the time bar is to encourage prompt notification and avoid claims being raised long after the fact." "It's far better to potentially over notify than miss a critical notification."   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 99 of The Subcontractors Blueprint podcast, host Jacob Austin explores effective program management within the NEC4 contract framework, tailored for construction subcontractors. He highlights how maintaining an up-to-date, realistic program is essential for profitability, cash flow, and dispute avoidance. Jacob provides practical guidance on aligning programs with NEC4 requirements, emphasising collaboration, clear communication, and proactive management. The episode underscores the importance of using the program as a living document to track progress, manage risks, and protect subcontractors’ interests, ultimately helping construction business owners deliver projects successfully and build stronger client relationships. KEY TAKEAWAYS:  Program management within the NEC4 framework for subcontractors in construction.  Collaboration and clear communication as key principles of NEC4 contracts.  Role of the program as a living document linking time, scope, and risk.  Consequences of failing to produce or update the program.  Importance of including key dates, task sequences, and dependencies in the initial program.   BEST MOMENTS: "The key philosophy of it is collaboration, clear communication and proactive project management. All NEC contracts and subcontracts require the parties to act in a spirit of mutual trust and cooperation." "When you maintain an up to date and realistic program and it gets accepted, it actually protects you because any changes compensation events will be assessed using your program as a baseline." "If you fail to produce or update your program, the contractor, your client has some powers to make your life really uncomfortable." "One important mantra here is to keep it real. Update your program to reflect reality, even if that isn't pretty." "This isn't just a piece of paperwork. It's your lifeline for managing your time and money under your contract."   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 98 of The Subcontractors Blueprint podcast, host Jacob Austin is talking all things final accounts. He outlines how to properly prepare and present the final account—including variations, provisional sums, and claims—to maximise profitability and avoid missed payments. Jacob highlights common pitfalls, such as missing deadlines and relying on verbal instructions, and stresses the importance of clear documentation and understanding legal frameworks. The episode offers practical advice to help subcontractors secure all entitlements, strengthen client relationships, and improve their contract management practices. KEY TAKEAWAYS:  Importance of managing the final account process in subcontracting within the construction industry.  Key components to include in a well-structured final account, such as original contract sum, variations, provisional sums, and acceleration costs.  Common pitfalls subcontractors face, including missing deadlines, relying on verbal instructions, and unclear variation pricing.  Strategies for effective final account preparation, including maintaining a variation log and keeping adequate records.  Strategies for effective final account preparation, including maintaining a variation log and keeping adequate records. To listen to the episodes on Variations mentioned in this show, please see the following links: Episode 3: Navigating the Challenges of Changes in Construction Episode 18 - Valuing Changes Episode 30 - 5 Steps to Change Success   BEST MOMENTS: "The final account is your last opportunity to protect your profit." "If you mess it up or miss things, you could be leaving thousands of pounds on the table that you've earned with your own blood, sweat and tears on site." "It's harder to negotiate up than it is to negotiate down in this situation. So you need to mark the dates. It pays to be earlier than the deadline, and it's a disaster to be after it." "Treat the final account with the same energy you treated getting the job. Proactively follow up your submission." "A well-managed final account can actually strengthen your relationship with a main contractor and even the client. It shows you’re professional and you're on top of things."   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 97 of The Subcontractors Blueprint podcast, host Jacob Austin highlights the importance of cost reporting and monitoring for subcontractors. He explains how tracking project expenses against budgets is crucial for maintaining profitability and cash flow, especially given the tight margins in construction. Jacob shares practical, straightforward steps for implementing cost reporting without excessive paperwork, making it accessible for businesses of all sizes. Listeners gain actionable advice on improving financial management, protecting profits, and building more resilient operations. The episode serves as a valuable guide for subcontractors aiming to strengthen their business through better cost control.   KEY TAKEAWAYS:  Financial challenges faced by subcontractors, particularly in the UK  Systematic tracking of project expenses against budgets  Early detection of cost overruns and proactive adjustments  Management of cash flow through regular cost monitoring  Identification and justification of additional work claims  Transformation of raw data into actionable insights for decision-making BEST MOMENTS: "If you can't measure it, you can't manage it. And that holds very true for your project costs." "Regular cost monitoring helps you manage cash flow by aligning your project expenditures with your income." "Good cost reports turn raw data into actionable insights. They let you and your team make informed decisions on the project." "The goal of all this reporting is to protect that profit when margins are already slim, as we discussed." "By regularly keeping tabs on your costs, you ensure that profitability isn't left to luck. You gain control over your project's financial outcomes rather than being at their mercy."   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 96 of The Subcontractors Blueprint podcast, host Jacob Austin discusses the common issue of disputes between subcontractors and main contractors in construction projects. He explores the root causes—pressure, conflicting incentives, and poor communication—and offers practical strategies to foster collaboration, set clear expectations, and build trust. Jacob emphasises the importance of a solution-focused mindset, proactive communication, and learning from conflicts. His insights provide actionable advice for subcontractors to improve profitability, cash flow, and business growth by creating stronger, more productive relationships with main contractors. KEY TAKEAWAYS:  Strategies for subcontractors to enhance relationships with main contractors  Setting clear expectations and defining scope of work  Prioritizing effective and transparent communication  Building trust through reliability and professionalism  Proactive problem-solving and maintaining transparency  Focusing on solutions rather than assigning blame during challenges BEST MOMENTS: "There’s a simple truth to remember here: you can’t meet an expectation you don’t know about. And the main contractor can’t read your mind about what you need either." "Surprises are for birthday parties, not for construction projects. Halfway through a project, surprises usually equal disputes." "Being solution focused means prioritising problem solving over finger pointing. It’s about keeping a cool head and working collaboratively to fix the issue." "It’s hard to fight with the person who’s actively helping to solve your problems." "People will work with people they like and trust. If you focus on being the kind of subcontractor who communicates well, delivers on their promises, and works with the main contractor to solve problems, you’ll transform the dynamic from us versus them to we’re all in this together."   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 95 of The Subcontractors Blueprint podcast, host Jacob Austin discusses crucial legal principles affecting subcontractors, focusing on the prevention principle and other common law doctrines in UK construction contracts. He simplifies complex legal concepts, offering practical examples to help subcontractors safeguard their businesses. Key topics include the importance of well-drafted contracts, recognising repudiation breaches, understanding frustration of contracts, and the role of timely notices. Jacob emphasises that subcontractors should be proactive in understanding their contracts, communicating effectively, and documenting all interactions to avoid legal pitfalls and enhance business practices. KEY TAKEAWAYS:   Common law principles relevant to construction contracts under UK law.   The prevention principle and its implications for contract performance.   Understanding repudiation and breach of contract.   The significance of well-drafted contracts and clear terms.   The role of notices in protecting subcontractors' rights. BEST MOMENTS: "Good faith means dealing honestly and fairly with your contracting partner." “A repudiate or breach is basically a serious breach of contract, so serious that it allows the innocent party to terminate the contract and claim damages." “The prevention principle holds that if the employer or the main contractor does something that prevents the main contractor or subcontractor from completing on time, then the employer or main contractor can't enforce contractual penalties for late completion." "Freedom of contract wins. You can't invoke the prevention principle to strike out a contract clause that explicitly puts certain delays on the contractor." "A bit of foresight can save a ton of pain and money later."   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 94 of The Subcontractors Blueprint podcast, host Jacob Austin dives into six game-changing construction methods— 3D volumetric modular, mass-timber frames, robotic rebar & 3D-printed concrete, reality-capture digital twins, plug-and-play MEP pods, and hydrogen-ready plant—and spells out exactly how each one will alter a subcontractor’s cashflow, risk profile and contract clauses. Using live UK case studies Jacob some of the pitfalls of these methods including, harsh design-freeze penalties, moisture/fire warranties, labour demobilisation, data-driven payment triggers and green-plant cost uplifts. KEY TAKEAWAYS:   Front-loaded cashflow & tighter deadlines – modular, POD and robotic methods shift huge chunks of value off-site; insist on off-site valuation clauses and rock-solid design-freeze dates so you’re not bank-rolling the factory.   Risk relocates, not disappears – mass-timber needs moisture/fire warranties, hydrogen kit adds ATEX protocols, and digital-twin data errors can stall payment; audit each new method against fresh insurance, QA and programme clauses.   Method-change protection is vital – if the main contractor switches you from manual rebar to a tying robot (or diesel to hydrogen), a pre-agreed compensation mechanism stops your sunk costs becoming dead money.   Data now triggers cash – reality-capture twins mean interim payments may hinge on BIM model “trust levels”; appoint a digital champion and budget CPD so missing COBie fields don’t strangle cashflow.   Early adopters capture margin – subbies who skill-up on drone surveys, factory QA and low-carbon plant, and who collaborate with designers at bid stage, will snag higher-value packages while competitors play catch-up.   BEST MOMENTS: “With the current focus on MMC, modular construction has seen a rise, but it has also seen a couple of casualties along the way in the form of main contractors focused entirely on modular units which have gone to the wall." "Kier were able to cut their install programme from 20 months down to 12, which meant a 30% reduction in prelims and a great saving on snagging everybody's favorite, which was down 80% when contrasted to a typical project." "The golden rule for modular is that modular love certainty. You can build certainty in a factory, but you can't build a 70% complete design that still needs developing." "Moisture whilst the site is coming together is a big issue, and insurers are now demanding documented weather protection measures for CLT installers." "On the A9 Perth bypass, an autonomous cage tying robot was used to install reinforcement bars, which reduced labor by 45%, and the robots tied 98% of its work in accordance with specification."   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