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

In episode 117 of The Subcontractors Blueprint podcast, host Jacob Austin provides UK construction business owners with a clear, practical overview of the Housing Grants, Construction and Regeneration Act and the Scheme for Construction Contracts. He explains key protections for subcontractors, including rights to interim payments, payment notices, pay less notices, suspension for non-payment, and fast-track dispute resolution through adjudication. Jacob emphasises the importance of written contracts but reassures listeners that statutory rights apply even without one. This episode empowers subcontractors to secure timely payments, maintain healthy cash flow, and confidently handle disputes in the UK construction industry.

KEY TAKEAWAYS:

• The Construction Act and the Scheme for Construction Contracts provide crucial legal protections for UK subcontractors, ensuring fair and prompt payment.
• Subcontractors are entitled to interim payments, clear payment notices, and protection from unfair payment delays or reductions.
• Contractors must issue timely payment and pay less notices, or else the subcontractor is entitled to the full amount claimed.
• Subcontractors have the right to suspend work for non-payment and can claim extensions of time and reasonable costs for remobilisation.
• Statutory adjudication offers a fast-track, cost-effective way to resolve payment and contract disputes, even for oral agreements.
• "Pay when paid" clauses are generally outlawed, ensuring subcontractors are not left waiting for payment due to issues higher up the supply chain.

BEST MOMENTS:

"If the contractor misses that window or fails to issue a valid Payless notice, they can't by law short to pay you. And the law is really clear on that."

"The law says that you can [suspend work for non-payment] without liability, meaning you won't be in breach of contract for stopping work in those circumstances."

"Adjudication can be a game changer for subcontractors because it embodies that pay now, argue later ethos that we mentioned earlier by giving you a way to quickly secure payment or resolve disputes."

"The Construction Act outlaws that, and any provision that makes your payment conditional on receipt of payment from a third party is ineffective."

"Knowing these rules and asserting them at the right time will help you to ensure you get fully paid and on time for the work that you do."

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 116 of The Subcontractors Blueprint podcast, host Jacob Austin explains the importance of the "golden thread"—a comprehensive digital record of building information now required under the Building Safety Act 2022. Using a real-world example, he highlights the risks of poor documentation and offers practical tips for subcontractors to organise, manage, and hand over essential compliance documents. Listeners learn what information to provide, legal obligations, and how embracing these practices not only ensures building safety and timely payments but also strengthens relationships with main contractors and secures future work.

KEY TAKEAWAYS:

• The golden thread is a comprehensive, digital, and legally required record of building information, ensuring compliance, safety, and accountability throughout a project’s lifecycle.
• Subcontractors must provide accurate, up-to-date documentation such as as-built drawings, product data, test certificates, O&M manuals, and records of design changes to support project handover.
• Failing to maintain the golden thread can delay project completion, final payments, and legal building occupation, impacting both reputation and business relationships.
• The golden thread is expanding beyond high-rise residential projects, with many clients and contractors now treating it as best practice across all sectors.
• Effective golden thread management involves early organisation, clear communication with your supply chain, leveraging digital tools, and following main contractor requirements.
• Proactive, quality handover documentation not only ensures compliance but also builds trust and increases the likelihood of repeat work from main contractors.

BEST MOMENTS:

"The golden thread, essentially a comprehensive digital trail of building information, is evidence that your work complies with building regulations."

"No structured handover = no completion certificate = no legal occupation."

"The golden thread demonstrates first with the design, that the design is compliant, backed up by relevant specifications and performance data through the install."

"The golden thread isn't just about bureaucratic red tape—it's about instilling accountability and pride in everybody's work."

"Main contractors will start to remember the subcontractors who hand over quality information first time and without a fight."

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 115 of The Subcontractors Blueprint podcast, host Jacob Austin explores the vital role of a Quantity Surveyor (QS) for construction subcontractors. He explains how a QS goes far beyond pricing jobs, acting as a commercial guardian by supporting contract negotiation, risk management, cash flow forecasting, cost control, payment applications, change management, delay claims, final account strategies, and dispute resolution. Jacob emphasises how leveraging QS expertise can protect your business, improve profitability, and ensure timely payments. He encourages listeners to subscribe the show for more information to strengthen their subcontracting businesses.

KEY TAKEAWAYS:

• A Quantity Surveyor (QS) offers far more than just pricing jobs—they act as a commercial guardian, helping subcontractors protect profitability and manage risk.
• A QS can review and negotiate subcontract terms, identifying and advising against unfair or high-risk clauses before you sign, which is crucial for business protection.
• Risk management is a core QS skill, including creating risk registers, analysing potential pitfalls, and developing strategies to mitigate financial and contractual risks.
• Effective cost planning and cash flow forecasting by a QS help prevent cash shortages, keep projects on budget, and enable strategic financial planning.
• QSs play a vital role in cost reporting, change management, and ensuring accurate, timely applications for payment—maximising entitlements and minimising money left on the table.
• A QS supports dispute resolution, prepares for adjudication if needed, and provides commercial strength in negotiations, ultimately helping subcontractors build more resilient, profitable businesses.

BEST MOMENTS:

"A good QS can be like your commercial guardian, balancing their contractual knowhow, financial savvy, and onsite experience to protect your bottom line."

"As I've said a few times on the show, after you sign, you're legally stuck with the obligations that you sign up to."

"Less than 1 in 3 construction jobs ends up within 10% of its original budget, with the majority running over."

"Properly managing changes is where subcontractors can either make or lose money."

"These reviews are about catching problems before they snowball and capitalising on opportunities whilst they're fresh in everybody's mind."

"If you're the kind of subcontractor who up until this point has been using QS just for estimating, you now know the full picture."

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 114 of The Subcontractors Blueprint podcast, host Jacob Austin offers practical guidance on cash flow management tailored for construction subcontractors. He covers essential topics such as cash flow forecasting, stress testing finances, disciplined billing, client selection, and building financial reserves. Jacob also shares strategies for managing growth, handling seasonality, and preparing contingency plans for late payments. Emphasising the importance of team awareness and contractual safeguards, this episode equips subcontractors with actionable steps to enhance profitability, resilience, and long-term business stability in the face of industry volatility.

KEY TAKEAWAYS:

• Cash flow forecasting is essential for subcontractors due to unpredictable payment cycles and the risk of late payments, helping businesses anticipate and manage cash shortfalls.
• Accurate and regularly updated cash flow forecasts (ideally on a 13-week rolling basis) allow subcontractors to project both inflows and outflows, identify potential crunch points, and make informed financial decisions.
• Stress testing cash flow forecasts by modelling scenarios such as delayed payments, reduced income, and increased costs helps businesses prepare for real-world volatility and avoid surprises.
• Maintaining discipline in billing and collections—prompt invoicing, strict tracking of receivables, and proactive follow-ups—prevents avoidable cash flow gaps.
• Building resilience through strong financial habits includes diversifying clients, controlling growth and overheads, planning for seasonality, and fostering cash flow awareness across the team.
• Establishing robust cash reserves and contingency plans (such as credit lines or invoice factoring) provides a safety net for unexpected shortfalls, while knowing and exercising contractual rights can help resolve persistent payment issues.

BEST MOMENTS:

"Cash flow is of vital importance and it's the lifeblood of any subcontracting business."

"Cash flow forecasting is your early warning system for your financial health."

"For subcontractors who endure unpredictable payment cycles, forecasting is essential for survival.

"Maintaining discipline in your billing and collections sounds obvious, but it's actually quite a common mistake to have disorganised invoicing."

"It's far better to have [contingencies] and not need them than to not have them when you ultimately need to rely on them."

"In a nutshell, cash flow for subcontractors is all about being prepared and being proactive."

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 113 of The Subcontractors Blueprint podcast, host Jacob Austin explains critical updates affecting subcontractors, taken from the recently adopted Procurement Act 2023. He details the new legal requirement for 30-day payment terms on public sector contracts, which now applies throughout the supply chain. Jacob offers practical tips for ensuring timely payments, highlights new transparency measures for checking clients’ payment practices, and discusses enforcement tools available to subcontractors. The episode empowers construction business owners with actionable knowledge to protect cash flow, enforce their rights, and make informed decisions about future contracts.

KEY TAKEAWAYS:

• The Procurement Act 2023 enforces 30-day payment terms for all suppliers and subcontractors on public sector contracts.
• Contract clauses extending payment beyond 30 days are now void, with stricter enforcement than previous rules.
• Only valid, correctly formatted invoices trigger the 30-day payment clock; invalid or disputed invoices are excluded until resolved.
• Subcontractors can suspend work after seven days’ notice for non-payment and claim statutory interest or escalate via the Public Procurement Review Service.
• Large companies and public authorities must now publish detailed, twice-yearly reports on payment practices, including late payments and retentions.
• Subcontractors should use the government portal to check clients’ payment histories and avoid or negotiate with habitual late payers.

BEST MOMENTS:

"Every invoice from a subcontractor on a government job should be paid within 30 days by law, even if the contract itself didn't spell that out explicitly."

"The law voids any contract clause that tries to lengthen payment terms beyond that 30 day limit." (For public sector contracts)

"You have always got your statutory right under the Construction Act of suspending performance after seven days of notice."

"The PRS are recorded as recovering £9 million in late payments just by suppliers escalating cases through their service."

"This is all vital information for you to consider before you start working for a new client, a new contractor."

"Late payment is no longer a norm that you need to tolerate to work in the industry, but a bad habit that needs to be exposed and got rid of."

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