In episode 125 of The Subcontractors Blueprint podcast, host Jacob Austin introduces a mini-series on JCT subcontracts, tailored for UK construction subcontractors. He explains the structure and risks of JCT contracts, highlights key changes from the 2016 to 2024 versions—including updates driven by the Building Safety Act 2022—and stresses the importance of reviewing both standard conditions and amendments. Jacob offers practical advice on contract review, payment procedures, and compliance, aiming to help subcontractors avoid costly misunderstandings and operate with greater confidence in today’s evolving contractual landscape.

KEY TAKEAWAYS:

• JCT subcontracts are often presumed to be “standard,” but amendments frequently shift risk onto subcontractors without clear warning.
• Subcontractors are commonly bound by reference to lengthy conditions they may never have seen, making it crucial to obtain and review the full contract documents.
• Amendments in areas like payment terms, suspension rights, and program obligations can significantly impact risk and cash flow.
• The 2024 JCT updates introduce changes for electronic notices, align more closely with the Construction Act, and reflect new building safety requirements, especially documentation.
• To protect themselves, subcontractors must scrutinise amendments, check key details on time, scope, and money, and ensure they price for all required paperwork and compliance.
• The episode stresses that assuming all JCT contracts are alike is dangerous—always interrogate the actual terms and amendments before signing.

BEST MOMENTS:

"As soon as your materials are on site, they belong to the project, so you can't just drive off with them if things go awry."

"Termination means ending the subcontract before all work is completed, which means both parties are freed from any further obligations to complete the construction of the work."

"If the process isn’t followed properly, then this is effectively a breach. The consequence of that breach is that the calculation is different—you will get full compensation without a deduction."

"Termination is a situation where nobody truly wins. It’s a salvage operation as a subcontractor, and your goal is likely to get out of there without a huge loss and without burning bridges."

"Many subcontractors have been strong-armed into accepting zero compensation after rough termination, simply because they don’t know what they’re entitled to—don’t let that be you."

"Demonstrating you know your stuff can change the conversation—it changes you from being a victim in the process to an informed participant."

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/

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