Getting it RIGHT Before SITE: 7 Must-Do Checks Before Signing Your Subcontract

In episode 38 of The Subcontractors Blueprint podcast, Jacob Austin provides crucial advice for subcontractors on the seven key areas to review before signing a subcontract. He highlights the importance of understanding the financial standing of the contracting party, clear payment terms, and the specifics of price, program, scope of work, design liability, and dispute resolution mechanisms. Jacob stresses the need for a seven-day notice period for payment and the benefits of the adjudication process under the construction act for swift dispute resolution. He urges subcontractors to scrutinise the subcontract for any discrepancies and to consider the long-term effects of the contract's wording. If you enjoy the show, Jacob invites you to share the episode’s insights. KEY TAKEAWAYS:  The importance of clarifying payment terms, credit score, and understanding the contractor's payment culture.  Ensuring the subcontract sum reflects the quoted sum, checking for qualifications, and value engineering.  Checking agreement on the contract period, avoiding vague program terms, and watching out for limitations on extension of time and costs.  Understanding the liability associated with design and ensuring the presence of a "reasonable skill and care" statement in the subcontract.  (Click to listen to episode 24 about design liability: https://podcasts.apple.com/gb/podcast/the-subcontractors-blueprint/id1701638267?i=1000640967914 )  The importance of the adjudication process as a quick dispute resolution method and the need to ensure it is not obstructed in the subcontract. BEST MOMENTS: "Who am I trading with? How long are they going to be around? Because at the end of the day, if you're going to commit to doing some work for somebody, you want to make damn sure that you're going to get paid for it." "The combination of big inflation and the hike in interest rates have really brought the sale rates of big housing contractors down to a minimum." "Cash flow is everything. It's also worth noting, if you're working for a contractor and they are themselves working for a small developer or quite a high-risk developer, it would be worth checking your contract to see what the terms say around the contractor paying you." "You want to remember that you can rely on that if you're not paid; you submit a notice, and seven days later, you can pull off site." "Going to court to resolve a dispute is a hell of a lot more expensive and time-consuming, and one you want to avoid if you certainly can." 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