Description
In episode 22 of The Subcontractors Blueprint podcast, Jacob Austin discusses how JCT subcontracts in the construction industry are formed. He emphasises the importance of understanding the terms and conditions of these contracts, including the rights and obligations of all parties involved. Jacob also explains the various elements of a subcontract, such as recitals, articles of agreement, and subcontract particulars. He provides detailed insight into the other items which are introduced by the sub-contract particulars such as attendances provided by the main contractor, retentions, and insurance requirements. He concludes by stressing the need for subcontractors to familiarise themselves with their contracts to avoid potential issues and disputes.
KEY TAKEAWAYS:
Practical discussions during pre-start meetings often overshadow the importance of delving into the contract and understanding the terms and conditions. But understanding the agreement you’ve signed up to is key to you operating the subcontract.
The recitals, articles of agreement and subcontract particulars form the basis of the agreement and detail what you are required to do.
The subcontract conditions themselves are often physically left out of the subcontract, as they are a standard and commonly understood document. They are incorporated by reference in Article one of the agreement. Often only amendments to those conditions are included in the contract.
The articles specifically state that the documents stated within the numbered documents are agreed as forming part of the subcontract. So you must make sure these are correct.
BEST MOMENTS:
“It is vital that you understand and know what those conditions are that you're signing up to because you've got to operate the subcontract, you've got to know where to issue a notice if you have to issue one, and you've got to understand what the change procedure is."
"These are the documents that are telling you what you're doing, so they need to be right."
"Sometimes it's not always straightforward and in spite of what some people might tell you, it's not that the contractor is trying to hide the conditions from you. It is just common custom and practice."
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 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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