Avoiding Site Instruction Destruction: Your Guide to Avoiding the Pitfalls of the Humble Site Instruction
Description
In episode 43 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone discusses a crucial lesson about the importance of following on-site instructions. He recounts a story of a subcontractor facing consequences for refusing to execute additional work, leading to project delays and financial loss. Jacob highlights the necessity for subcontractors to understand their obligations and the circumstances under which they can reject instructions. He also explains the process of issuing instructions, both written and verbal, and the significance of documentation. Additionally, Jacob offers insights into the JCT and NEC contracts' procedures for instructions. He concludes by stressing the importance of compliance with on-site instructions to avoid negative outcomes for subcontractors.
KEY TAKEAWAYS:
The importance of following on-site instructions for subcontractors
Potential consequences for subcontractors who do not comply with instructions.
Insights into JCT and NEC contracts and their procedures for issuing instructions.
Subcontractors' obligations and reasons for objecting to instructions.
Concept of reasonable instructions and examples.
BEST MOMENTS:
"Unhappily, in his words, he was being shafted."
“This is where you've got to be incredibly careful, because holding out for agreement on a price or refusing to do something because of you've not been paid the full amount that you thought a previous variation was worth, isn't a valid reason to reject an instruction.”
"This is your warning; if you've already failed to action an instruction and you then receive a seven-day notice telling you to get on with it, if you don’t”…”Then it’s going to start costing you money”
“All of these little bits are extra loss and you could be looking at a fairly hefty bill.”
Unlike JCT.. “There is no procedure under NEC for verbal instructions to be given. So in that instance, if somebody doesn't confirm to you in writing something that they've asked for, then there is no change and there's no compensation event."
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
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