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.

In episode 86 of The Subcontractors Blueprint podcast, host Jacob Austin explores the key differences between the JCT 2024 and JCT 2016 contracts. He discusses updates in design liability, communication methods, dispute resolution, payment provisions, and new clauses on sustainability and building safety. Jacob emphasises the importance of subcontractors understanding these changes to manage risks and ensure profitability. He advises listeners to update their contract templates and practices to align with the new JCT 2024 standards. This episode provides essential insights for subcontractors aiming to stay competitive and successful in the evolving construction industry.

KEY TAKEAWAYS:

• Differences between JCT 2024 and JCT 2016 contracts
• Updates in terminology and procedural changes
• Changes in design liability standards
• Modernisation of communication methods (email and electronic signatures)
• Introduction of early dispute notification and resolution processes
• Clarification of payment provisions and termination payments
• New clauses related to sustainability in construction
• Compliance with the Building Safety Act

BEST MOMENTS:

"Email is finally in. So in JCT 16 formal notices often had to be on paper... But now in the 24, for the majority of notices are able to be sent by email."

"Parties now need to work in a cooperative and collaborative manner, in good faith and in a spirit of trust and respect."

"The important thing that you need to do here is to ensure that your team understands what the legislation is, and what you need to do to comply with 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

In episode 85 of The Subcontractors Blueprint podcast, host Jacob Austin is talking about the Building Safety Act (BSA) of 2022, a pivotal reform in construction regulatory and building safety law following the Grenfell Tower tragedy. Jacob outlines the new roles and responsibilities for subcontractors, emphasising the importance of compliance and documentation. He discusses the increased scrutiny from local authority inspectors and the need for thorough paperwork, especially for design work. Jacob also highlights the impact on high-rise residential buildings and the necessity of coordination with accountable persons. The episode provides practical advice on adapting to these changes and leveraging technology to streamline compliance efforts.

KEY TAKEAWAYS:

• The significance of the Building Safety Act (BSA) in construction safety law.
• Introduction of new roles and responsibilities for principal designers and principal contractors.
• Implications of the BSA for subcontractors, including compliance and documentation responsibilities.
• Increased scrutiny and enforcement of compliance by local authority inspectors.
• Impact of the BSA on high-risk buildings and the role of the Building Safety Regulator (BSR).
• Resources available for subcontractors to navigate the changes and ensure compliance with the BSA.

BEST MOMENTS:

"The Building Safety Act 2022, known as BSA, is a landmark piece of legislation overhauling building safety regulation."

"The big theme of the act is accountability."

"It's no longer acceptable to rely on building control to catch mistakes or to assume safety is someone else's job."

"The law now expects a team effort rather than the siloed approach of old."

"It's taking really seriously a disaster that's happened and trying to prevent a similar thing from happening again."

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