In episode 126 of The Subcontractors Blueprint podcast, host Jacob Austin continues his JCT Subcontract mini-series providing construction business leaders with a comprehensive overview of design liabilities under JCT 2024 subcontracts. He explains key legal standards, the impact of contract amendments, and the risks of fitness-for-purpose obligations. Jacob highlights the importance of careful contract review, maintaining professional indemnity insurance, and understanding BIM protocols. He shares practical tips for managing design approvals, submission procedures, and liability caps, emphasising how minor contract changes can significantly increase risk. The episode empowers subcontractors to protect their businesses by staying informed and negotiating fair, insurable terms.

KEY TAKEAWAYS:

• The JCT 2024 subcontracts clarify that subcontractor design liability is limited to reasonable skill and care, not fitness for purpose, unless expressly stated otherwise.
• Approval of design by contractors or clients does not transfer liability; subcontractors remain responsible for their own design adequacy.
• Professional indemnity insurance typically only covers negligence, not absolute performance guarantees or fitness for purpose obligations.
• Subcontractors must carefully follow design submission and approval procedures, maintain records, and understand BIM protocol requirements if applicable.
• Contract amendments can significantly increase risk by introducing fitness for purpose clauses, uncapped liabilities, or indemnities—so vigilance and negotiation are essential.
• Always align contractual obligations with insurance coverage, and scrutinise amendments to avoid taking on unintended or uninsured liabilities.

BEST MOMENTS:

"Skill and care is about how you do the work—doing it professionally—whereas fitness for purpose is about the result."

"If you accidentally or otherwise accept a fitness for purpose obligation, your insurer can decline your coverage."

"Approval in a contract is about consent to move forward, not transferring design risk."

"Many SMEs understandably focus on price, scope and program and gloss over the legal terms, but design liability is one area where a few little sentences can completely change the game."

"High risk should command a higher price, and it may even mean higher insurance coverage."

"Managing design and the risk associated with it is not about avoiding design work, it's about doing it on fair terms, with awareness of where your responsibility ends."

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/

www.qs.zone/all-links

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/

www.qs.zone/all-links

In episode 124 of The Subcontractors Blueprint podcast, host Jacob Austin continues his NEC4 mini-series, focusing on clauses 70, 80, and 90. He provides clear, practical guidance on material ownership, insurance obligations, and, most critically, termination procedures. Jacob explains how to protect your business by understanding payment entitlements, risk allocation, and the importance of following contract procedures. He highlights common pitfalls, offers actionable tips, and stresses the need for documentation and legal advice. This episode and mini-series equips construction business owners with essential knowledge to manage NEC4 contracts confidently and safeguard profitability.

KEY TAKEAWAYS:

• Once materials are delivered to site, legal ownership passes to the contractor or client, affecting both risk and payment security.
• Subcontractors are responsible for a range of insurances and liabilities, with the contract specifying who must cover which risks.
• Termination under NEC4 is highly structured, with clear reasons, procedures, and payment calculations depending on who is at fault.
• Wrongful or improperly handled termination can have serious financial and legal consequences, so understanding and following the contract is critical.
• Subcontractors should document everything, know their rights, and approach termination as a last resort, aiming to protect both reputation and financial interests.
• Proactively communicating and keeping thorough records can help subcontractors avoid disputes and ensure they recover all monies owed if termination does occur.

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/

www.qs.zone/all-links