In episode 120 of The Subcontractors Blueprint podcast, host Jacob Austin continues the NEC contracts mini-series, providing construction business owners with a comprehensive guide to program clauses under NEC4 subcontracts. He explains the critical requirements for program submission, acceptance, and ongoing updates, highlighting their impact on cash flow, entitlement protection, and project management. Jacob discusses practical strategies for ensuring compliance, avoiding payment penalties, and maintaining control over compensation events. This episode is essential listening for subcontractors seeking to strengthen their NEC4 contract administration and safeguard their business interests.

KEY TAKEAWAYS:

• The critical role of the program in NEC4 subcontracts, detailing how it underpins project planning, change management, and subcontractor protection.
• NEC4 requires programs to include key dates, milestones, logical sequencing, float, time risk allowances, and necessary inputs from other parties.
• The distinction between planned completion and contract completion dates is emphasised, with terminal float serving as a buffer for subcontractors.
• Submitting a compliant program on time is essential, as failure to do so allows the contractor to withhold 25% of payments until an acceptable program is provided.
• Program acceptance and rejection are governed by strict contractual criteria, and deemed acceptance occurs if the contractor fails to respond within set timeframes.
• Regular program updates are required to reflect progress, changes, and delays, ensuring the program remains a reliable management tool and protects subcontractor entitlements.

BEST MOMENTS:

“A well-managed program, and an accepted program, is absolutely central to administering the subcontract. It sets out how and when the work will be done.”

“If there’s no current accepted program, the assessment of compensation events may be taken out of your hands—potentially leading to smaller time and cost compensation.”

“By including key dates and requirements in your program, you are creating hooks within your program that the contractor or whoever else is going to snag on if they miss those dates.”

“Acceptance of a program doesn’t stop you from having to achieve any of your obligations, and it doesn’t transfer any risk of those to the contractor.”

“The goal here is to create a program that’s got clear and common reference points for both parties- it allows the contractor to verify the feasibility of your program and to see your needs and your constraints.”

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 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 119 of The Subcontractors Blueprint podcast, host Jacob Austin continues the NEC contracts mini-series, focusing on key obligations for subcontractors. He explains the importance of acting in a spirit of mutual trust and cooperation, details core responsibilities under the 10, 20, and 40 series clauses—including quality management, design duties, and defect handling—and emphasises proactive communication and collaboration. Jacob also provides practical guidance on defect management, highlighting the impact on client satisfaction and future business. The episode offers clear, actionable advice to help construction business owners protect profitability and maintain strong contractor relationships.

KEY TAKEAWAYS:

• The NEC contract’s foundation is acting as stated in the contract and in a spirit of mutual trust and cooperation, requiring both strict compliance and collaborative problem-solving.
• Subcontractors must deliver all works as defined in the scope, including any design responsibilities, key personnel, and coordination with others as specified.
• Meeting key dates is critical, as missing them can lead to liability for additional costs or delays impacting other trades.
• Subcontracting parts of the work requires contractor approval, and the main contractor manages you—not your sub-subcontractors.
• A robust quality management system is mandatory, with clear procedures for inspections, testing, and defect correction as outlined in the contract and scope.
• Defects must be reported and corrected within specified periods, with uncorrected defects potentially leading to deductions or negotiated credits, emphasising the importance of proactive communication and client satisfaction.

BEST MOMENTS:

"The NEC’s core principle is that parties act as stated in the contract and in a spirit of mutual trust and cooperation."

"Mutual trust and cooperation means openness, fairness, and tackling problems together—not hiding bad news or exploiting loopholes."

"Key dates are critical—miss one, and you could be liable for the contractor’s extra costs or delays to other trades."

"A quality management system isn’t optional; you must have documented procedures for inspections, testing, and approvals."

"Defects must be reported and corrected promptly—unfixed defects can lead to deductions or negotiated credits, impacting your reputation and payment."

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 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 118 of The Subcontractors Blueprint podcast, host Jacob Austin launches a mini-series on the NEC4 suite of contracts, focusing on the engineering and construction subcontract “ECS”. He explains the contract’s structure, main and secondary option clauses, and their impact on risk, pricing, and delivery. Jacob provides a practical checklist to help subcontractors review NEC4 subcontracts, emphasising the importance of understanding triggered clauses, design obligations, liability caps, and payment terms. This episode equips construction business owners with essential knowledge to manage contractual risks, protect profitability, and ensure project success under NEC4.

KEY TAKEAWAYS:

• The NEC4 Engineering and Construction Subcontract (the "ECS”) closely mirrors the main contract, providing consistency and back-to-back risk management throughout the supply chain.
• Subcontractors must understand which main option (A–E) is used, as it fundamentally changes the allocation of risk and payment mechanisms.
• Secondary option clauses (W, X, Y, Z) tailor the contract to specific scenarios, and subcontractors need to review these carefully to understand their obligations and risks.
• Key processes like early warning and compensation events are designed to align with the main contract, promoting collaboration and timely communication.
• Subcontractors should always review the contract data and option clauses in detail to ensure their price and approach reflect all risks and requirements before signing.
• The NEC4 approach is user-friendly and flexible, but its customisability demands careful attention to detail to avoid unexpected liabilities.

BEST MOMENTS:

“As a subcontractor, you're operating in a framework that talks back to the main contract and feeds in to the main contractor's obligations to their client, so it reduces surprises and mismatches in timescales and obligations.”

“The most collaborative tool within the main contract, the early warning process, is flowed down to you as a subcontractor as well.”

“As you go through the options from A to E, you start with a situation where the subcontractor holds the biggest amount of risk through to option E, where the subcontractor holds the least amount of risk.”

“It would certainly be sensible to discuss before you set off down a road that you both struggle to get to the end of, but you need to understand with this, the option isn't just a letter. It completely changes the feel and the nature of the subcontract.”

“It's important that you appreciate what those letters and numbers mean because when you read the subcontract data for an NEC contract, it will list out all of the option clauses that apply to that particular subcontract.”

Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.

HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to 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