In episode 89 of The Subcontractors Blueprint podcast, host Jacob Austin introduces the "case law coffee break," a segment focusing on recent legal rulings affecting subcontractors in the construction industry. Jacob discusses three pivotal cases:

1. Morgan Stone Limited vs. Bergkamp Limited - This case highlights the implications of acting as if a revised payment schedule has been agreed upon through performance.
2. Providence Building Services Limited vs. Hexagon Housing Association Limited - This case addresses contract termination due to late payments and the importance of understanding default notices.
3. JV Homes vs. Fincham Demolition - This case explores the formation of contracts through informal communication, such as WhatsApp messages.

Jacob provides valuable insights and takeaways for subcontractors to navigate these legal complexities effectively.

KEY TAKEAWAYS:

• Discussion of recent legal rulings affecting subcontractors in the construction industry.
• Even in the case of payment schedules, acceptance through performance can apply.
• Understanding the complexities of contract termination and the necessity of adhering to notice requirements.
• Recognition that informal communications can create binding contracts.
• Emphasis on the need for clear documentation of agreements to prevent disputes.
• Awareness of statutory protections under the Construction Act that benefit subcontractors.
• The requirement to read and understand your sub-contract is ever present.

BEST MOMENTS:

"Firstly, if you start acting as if a schedule has been agreed, then you're effectively agreeing it by performance."

"So if you're ever in a place where you are appointing subcontractors, remember that even if you accept an offer informally, you could quickly be landing yourself with a contract."

"The judge decided that the subcontract that had been issued later was absolutely irrelevant to the situation, because the contract had already been crystallised."

"The Construction Act applies to all construction and demolition, and is implied if there are no conditions in place whatsoever."

"Termination is a really tricky part of the contract to administer."

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 88 of The Subcontractors Blueprint podcast, host Jacob Austin speaks about the critical importance of effective contract management in the construction industry. He explains how good contract management is essential for profitability, cash flow, and project success. Jacob emphasises clarity on obligations, accountability, transparency, collaboration, and risk allocation within contracts. He provides practical advice for subcontractors on managing contracts to avoid disputes and foster positive working relationships. Key takeaways include the need for clear documentation, early issue resolution, and maintaining accurate records. Jacob encourages subcontractors to view contracts as essential tools for daily decision-making and successful project delivery.

KEY TAKEAWAYS:

• Importance of effective contract management in the construction industry
• Clarity of obligations and responsibilities within contracts
• Necessity of accountability and transparency in contract execution
• Role of collaboration and open communication in preventing disputes
• Importance of appropriate risk allocation between parties
• Use of industry-standard contracts for fairness and balance
• Need for clear documentation and setting expectations early

BEST MOMENTS:

"A well-crafted contract is intended to be fair and balanced, allowing both parties to deliver the project as agreed."

"Good contract management starts with reading that document and understanding those gray areas before they explode into big claims and disputes."

"The contract is just paper unless the people managing it have got the skills and the systems to back it up."

"Know your contract thoroughly. It might sound obvious, but many folks only half read it or rely on what people have told them."

"Communicating often and early: leaving issues to fester creates bigger problems than nipping them in the bud."

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 87 of The Subcontractors Blueprint podcast, we take a deep dive into the intricate subject of retentions! Jacob conducts a comprehensive discussion on the manifold challenges and exasperations retentions can pose for subcontractors. This episode serves as a repository of invaluable insights and pragmatic guidance for subcontractors grappling with the intricacies of retention in the construction industry.

KEY TAKEAWAYS
• Retentions are a small percentage (typically between 1.5% to 5%) held back from the payment of completed work on a project. This money is withheld from the contractor and subcontractor to ensure that any defects or issues are addressed before the full payment is made.
• Retentions are typically released in two stages: the first half is released upon achieving practical completion, and the second half is released after the defects liability period. Subcontractors need to ensure that their works are snag-free and that they obtain a practical completion statement to mark the completion of their work.
• It is common for contractors to hold onto retentions for longer than they should, causing delays in payment for subcontractors. Subcontractors should be proactive in monitoring and chasing their retentions to ensure timely payment.
• The Construction Act prohibits the linking of the main contract to the subcontract in terms of retention release. Once the subcontractor's defects liability period is up, they have the right to be paid the retention, regardless of whether the contractor's defects liability period is complete.
• Subcontractors should consider negotiating a retention cap with the contractor if they have a good working relationship. This allows for increased cash flow while still providing the contractor with some security for potential defects. However, a retention cap should be negotiated on an individual basis and should not compromise the quality of the subcontractor's work.

BEST MOMENTS
"So it's a small percentage, typically between 1.5 to 5%, which is held back from the payment of completed work on a project."
"Stopping the retention is just something that needs to be done to keep the contractor in the black."
"You're effectively leaving a cash flow hole that isn't going to get any better until you do something about it."
"The whole of the subcontract supply chain is likely in the same boat as you."
"If you're increasing your price, you're effectively costing yourself and the taxpayers out there."

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, 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.