In episode 129 of The Subcontractors Blueprint podcast, host Jacob Austin continues his JCT Subcontract mini-series guiding you through the essentials of loss and expense claims under 2024 JCT subcontracts. He explains when and how subcontractors can recover costs from delays and disruptions, outlines a practical five-step claims process, and highlights common pitfalls to avoid. Jacob emphasises the importance of early notice, thorough documentation, and structured claims to protect margins and cash flow. The episode includes a real-world case study and actionable advice, empowering subcontractors to manage contracts more effectively and safeguard their profitability.

KEY TAKEAWAYS:

• The episode explains how subcontractors can effectively claim loss and expense under JCT subcontracts to recover costs from delays and disruptions.
• It highlights the difference between time-related (extension of time) and cost-related (loss and expense) claims, and the importance of understanding "relevant matters."
• Jacob outlines common pitfalls in loss and expense claims, such as lack of evidence, late notifications, and double counting costs.
• The episode provides a practical, step-by-step approach to structuring and evidencing a strong loss and expense claim.
• Listeners are advised to issue early notices, keep detailed records, and avoid leaving claims until the project's end.
• The importance of clear communication, proper documentation, and commercial awareness is emphasised to protect subcontractor margins.

BEST MOMENTS:

"If you don't claim loss and expense properly, then you're funding the job for free."

"The difference between being right and being paid is almost certainly evidence and structure to what you're doing."

"A proper loss and expense claim needs to be built out like a case showing cause, effect, and the resultant cost."

"Loss and expense needs to be claimed on the basis of actual costs incurred—that means showing the contractor invoices, timesheets, payroll records if necessary."

"Acceleration costs money… If the contractor isn’t willing to do that, then that tells you they want the benefit of the acceleration without putting their hand in their pocket."

"The worst thing you can do with loss and expense is to leave it all to the end and submit it as a parting shot just before you submit your final account."

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 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/

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