NEC4 Change Process: Don’t Let Time Bars Trip You Up

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

In episode 93 of The Subcontractors Blueprint podcast, host Jacob Austin addresses the critical issue of unfair contract terms in the construction industry. He provides practical advice and cautionary tales to help subcontractors identify and navigate potentially one-sided clauses that could lead to significant financial consequences. Jacob emphasises the importance of thoroughly understanding contract terms, negotiating fairer conditions, and seeking expert advice when necessary. He also discusses legal principles related to fairness and enforceability, sharing real-world examples to illustrate the impact of unfair terms. This episode is essential listening for subcontractors aiming to protect their interests in contract negotiations. KEY TAKEAWAYS:  Unfair contract terms create significant imbalances, often placing undue risk on subcontractors while benefiting the main contractor or client.  Common unfair terms include "pay when paid" clauses, extreme payment delays, one-sided termination rights, and unrealistic notice periods.  Subcontractors often accept unfair terms due to commercial pressure, fear of losing jobs, lack of negotiating power, and sometimes not fully understanding the contract.  Legal frameworks like the Unfair Contract Terms Act and general principles of fairness can protect against extreme terms, but court battles are costly and slow.  A real case, Glazer vs. Atay, illustrates how overly harsh contract terms can backfire, resulting in the barristers losing their fee due to an unfair payment clause.  Subcontractors should read contracts thoroughly, negotiate terms, consult experts if necessary, and document agreements to protect themselves from unfair clauses.   BEST MOMENTS: "An unfair contract term is a contract clause that is so one-sided that it creates a significant imbalance between the parties." "Imagine a clause that says the subcontractor will be liable for absolutely any delay on the project, no matter what the cause." "The rule against penalty clauses is a term that implies a punishment or an excessive consequence on a party for breaking the contract." "Make it a habit to read thoroughly through the contract, or pass that obligation on to somebody who understands it." "A moment spent reading that contract can save you countless headaches and a few pounds down the road."   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 92 of The Subcontractors Blueprint podcast, host Jacob Austin discusses the practical implications of the Building Safety Act for subcontractors involved in high-rise building projects in England. The episode focuses on the two critical gateways that can impact project timelines and cash flow. Jacob emphasises the importance of understanding these regulatory checkpoints, preparing early, and sharing risks with contractors to navigate potential delays effectively. By adopting proactive strategies and maintaining open communication, subcontractors can better manage the challenges posed by the new regulatory framework and ensure project profitability. KEY TAKEAWAYS:   The significance to the Building Safety Act for subcontractors working with high rise buildings.  Impact of Gateway Two on subcontractors, including potential delays and cash flow issues.  Legal implications of proceeding without Gateway Two approval.  Real-world challenges with approval timelines and their effects on project schedules.  Strategies for subcontractors to mitigate risks associated with the new regulatory framework.  Need for clear communication with main contractors regarding approval statuses.   BEST MOMENTS: "These gateways could feel a bit like a boss fight with a bureaucratic giant shouting 'you shall not pass' until certain conditions are met." "Gateway two has massive potential to hold up the start of construction. If that approval takes longer than expected, the whole project start is delayed." "Measure twice, cut once, turning more into measure five times, and maybe cut next year if I get approval." "Ultimately, the goal is to avoid disputes here, and you're going to do that by clarifying the risk up front." "Communication and early planning are your best friends. There's no benefit here in fighting the system or sticking your head in the sand."   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 91 of The Subcontractors Blueprint podcast, host Jacob Austin heads long into the critical topic of adjudication in the UK construction industry. Adjudication, introduced in the late 1990s, is a fast-track dispute resolution process designed to maintain cash flow and prevent project delays. Jacob shares cautionary tales and real-life examples, highlighting common pitfalls and emphasising the importance of meticulous preparation and understanding of the process. He advises subcontractors to act swiftly, maintain comprehensive records, and seek expert assistance when necessary. This episode aims to equip subcontractors with the knowledge to protect their financial interests effectively. KEY TAKEAWAYS:  Importance of adjudication as a fast-track dispute resolution process in the UK construction industry.  Common pitfalls and mistakes subcontractors make during adjudication.  The jurisdiction trap and the necessity for disputes to be fully formed before referral to adjudication.  Understanding the legal status of contracts and the implications for adjudication eligibility.  Risks associated with bundling multiple disputes into a single adjudication.  Importance of meticulous adherence to procedural rules in the adjudication process. BEST MOMENTS: "Mistakes in adjudication can be costly and often impossible to fix later." "If the procedures aren't followed, you're on the hook to pay up in full and then quarrel about the amount later." "The lesson here for you as a subcontractor is to know your contract and its legal status." "Courts only enforce adjudicators' decisions that meet minimum standards. Jurisdiction must be intact and natural justice observed." "If you're in an adjudication situation, you must be armed with preparation, precision, and a healthy respect and understanding of the process."   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