This week’s Wise Up Wednesday is about one of the biggest of all the challenges that Specialist Subcontractors face. Taking unnecessary risks must be the one that causes the most significant problems.
Construction is a tricky balance of risk against rewards, so if you’re frightened of risk, then you should find another way of earning a living. But that does not mean that risk is something to be ignored.
Here are some ways of recognising and controlling the risks you are taking:
- Ensure you know exactly who it is that you will be entering into contract with.
- Check their financial credentials.
- Identify the risks and responsibilities at tender stage.
- If the risks are unacceptable, consider withdrawing.
- Price for the risks.
- Qualify or reduce risk by negotiation.
- Ensure the contract incorporates what you have agreed.
- Manage the risks.
The best time to check the contract, is before you commit resources to the costly process of producing your tender. But, if for whatever reason you haven’t done that, and you are asked to start work on the basis of some previously unseen terms and conditions, you need to check for onerous conditions.
These might include:
- terms that nullify the benefits of the Construction Act
- onerous amendments to Standard Form contracts
- use of in-house forms of contract
- excessive liquidated damages or unlimited damages
- extended payment periods
- non-payment for unfixed materials
- conditions precedent for payment
- excessive discount
- extended retention periods
- onerous set-off arrangements
- onerous performance bonds and warranties
- enforced acceleration without payment
- lack of firm programme dates and periods
- suicide terms such as ‘to suit main contractor’s progress’
- excessive design or co-ordination responsibilities
- unworkable protection obligations
- responsibility for checking previous works of other trades
There’s a whole mountain of potential risk right there!
Want To Know More?
If you would like to know more about the ways to Minimise Risk and Maximise Profit, that we have been putting into practice on behalf of Specialist Subcontractors for the last 27 years, I would like to invite you to our exclusive March Seminars.
You will have a thoroughly enjoyable delay where you can enjoy the company of other Specialist Contractors at this exclusively “Subbies” only event.
The atmosphere is relaxed and the presentations are down to earth and user friendly, packed with real life examples of what to watch out for, and all the information that you need to minimise risk and maximise the profitability of your business.
And as all the venues are specifically chosen for ease of access you’re sure to have a great day, where you can network, learn and share ideas in a vibrant and relaxed atmosphere.
The secrets are being revealed at our March events;
“Understand Your Contract to Minimise Risk and Maximise Profit”
“Introduction To Contractual Awareness and Using JCT Subcontracts”
WHEN/WHERE IS IT? The dates and fast access venues are as follows;
Quick, you can still book for tomorrow’s event, as well as two more later this month:
15 March – Oulton Hall – Leeds close to M1 and M62
22 March – The Nottingham Belfry – Nottingham close to M1 J26
29 March – The Village Hotel – Coventry close to M6 and M40
WHAT DOES IT COVER?
We will be unlocking the Secrets To Minimising Risk and Maximising Profit in a straightforward down to earth easy to follow style using real life examples.
Here’s what your fellow Subcontractors said about our last event;
“Easily digestible information delivered in an interesting and easy to understand format”
“Very detailed and informative”
“Very informative and well delivered”
“We were struggling to get paid; not any longer!”
- Session 1 – Contract Formation
- Session 2 – Introduction to JCT Contracts and Construction Act
- Session 3 – Time, Notices and Delay and Disruption
- Session 4 – Instructions, Variations and Maximising Return
- Session 5 – Getting Paid On Time and the Right Amount
- Session 6 – Resolving Conflicts and Disputes
- Session 7 – Putting It All Together
WHO SHOULD ATTEND? This is exclusively for Specialist Contractors and is designed specifically to provide a broad appeal for Specialist Contractors staff who work with contracts which includes;
- Contracts Managers;
- Project Managers;
- Commercial Managers,
- Quantity Surveyors,
- Credit Controllers and
WHAT WILL WE GET OUT OF IT? The Secrets To Minimising Risk and Maximising Profit, including the best information available to resolve the all important problem of How To Get Paid!
Specialist Contractors don’t get paid because they don’t understand the contract or don’t apply it when they should. We will reveal all you need to know to enable you to understand the fundamentals of those subcontracts, and how to get paid.
WHAT DOES IT COST? You can book now for preferential discounts and rates – but be quick to ensure you receive your Early Booking Discount!
Book within the next few days and instead of paying £350, you can pay just £315.00 saving you 10% off the standard price.
Book two or more places and you can pay just £280 each saving you 20% off the standard price.
Special rates apply for our Buddies (members) – please ask Tanya for details.
All rates are subject to VAT
Booking couldn’t be simpler, just contact Tanya directly on 01773 712116 or firstname.lastname@example.org to confirm your places and she will take care of the rest. She is brilliant!
But hurry our last round of seminars sold out very quickly.
Please remember that we are here to provide solutions exclusively for Subcontractors. If you want access to professional solutions that work, then please give us a call on 01773 712116, or email email@example.com today.