Are You Leaving Money on the Table by Not Clarifying Your Subcontract Prices?

In episode 56 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone discusses the crucial importance of clarifying pricing in subcontracting work. Sharing a personal story from his early career, Jacob highlights the pitfalls of vague agreements and miscommunication. He recounts a challenging project involving boiler replacements, where unclear scope definitions led to financial losses. Jacob emphasises the need for thorough client discussions, provisional sums for undefined items, and meticulous documentation. This episode offers valuable advice to subcontractors on ensuring profitability, through clear communication and detailed scope definitions. KEY TAKEAWAYS:  Importance of clarifying pricing in subcontracting work.  Detailed scope definitions to avoid misunderstandings.  The impact of vague agreements on financial outcomes.  The significance of engaging in thorough discussions with clients.  Importance of documenting communications and clarifications in writing. BEST MOMENTS: "And this essentially turned into a humongous argument with them saying that they'd bought one thing and was saying that we'd only price to do a different thing.” “They'd done everything properly as regards defining the scope, so we had things like the asbestos refurbishment and demolition survey locations of all of the existing services which we needed to avoid, and a really detailed pricing document." "But when it came to recommissioning the air handling unit, it was clear that that wasn't enough because basically more than one coil needed replacing." "And sometimes within a bid there are these unknown items. Sometimes they can be fairly minor, but sometimes they can turn into big, hairy beasts of an item that, in one brutish swipe, can bring the whole project down for you." “Pick up the phone and have a good, detailed conversation about exactly what that means in terms of a scope item and what the contractor is expecting you to provide for it."   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