Damages and Extension of Time  

This week’s Wise Up Wednesday is about damages and extension of time.

One of the biggest financial risks to you as a Specialist Subcontractor is the possibility of damages from the Contractor if you over-run your original completion date.

These over-run costs can be massive. Consider a contract with liquidated damages from the client of £10,000 per week, plus the weekly costs of the Contractor’s site staff and establishment, also those of other sub-contractors. You could be looking at £30,000 per week of over-run being deducted from your account and/or pursued from you through adjudication or litigation. Enough to sink many a smaller Subbie for good.

If you wait until disaster strikes before considering what you should do, then you are in big trouble. It’s probably too late by then in most amended subcontracts, and definitely those incorporating NEC/4 or NEC/3 as it was!

In JCT contracts what you must do is to give the Contractor written notice of individual delays immediately they become apparent, detailing the cause and the effect upon your programme.

In particular, you must notify the anticipated effect upon your completion date and request an extension of time. Then you must update these notices as the works proceed.

You must also keep and regularly submit good site records (i.e. site diary, progress reports etc.) in order to prove your entitlements when challenged. There is no need for all these notices and records to read like some legalistic document. Just tell it like it is, making reference to the facts, and the anticipated effects.

But you must submit these details in writing and as soon as you encounter the problem. You must also ensure that you comply with the specific requirements of the contract. And these can be onerous. If it says you must send such notices on blue paper in a green envelope tied up with pink ribbon, then that is what you must do to ensure the notice is valid!

If you have the notices records and evidence in place, then even if the Contractor comes at you, it should be possible to win in the end. So, to quote a well-worn phrase, ‘Don’t be shy – get noticed’.

In NEC/3 and NEC/4 contracts the situation is altogether different, so please get in touch if you don’t know what you should do.

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;

Too late for Leeds which was 15 March – Oulton Hall

Quick still time to book 22 March Nottingham Belfry close to M1 J26

Closing soon 29 March – The Village HotelCoventry 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;

“Fantastic! A great day”

“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!”

THE HEADLINES

  • 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;

  • Estimators,
  • Contracts Managers;
  • Project Managers;
  • Commercial Managers,
  • Quantity Surveyors,
  • Credit Controllers and
  • Directors

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 tanya@streetwisesubbie.com 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.

P.S. 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 info@streetwisesubbie.com today.

 And Please Support #Buildgate (Google it)

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It’s Wise Up Wednesday – Resolve That Dispute…

This week’s ‘Wise Up Wednesday’ is all about resolving disputes – before they start!

Many disputes can be avoided by getting the paperwork right in the first place, and making sure that everyone has a common understanding of what is expected of them, and what will happen if things go wrong.

So the first way of resolving that dispute is to stop it from happening in the first place.

Adopting the following approach can help:

  1. Record all pre-contract negotiations and confirm everything in writing and/or email;
  2. Make sure all the important details are properly incorporated in the contract and that it exactly what has been agreed;
  3. Agree on any standard terms and conditions to be used and negotiate out any onerous clauses;
  4. Don’t agree to anything you don’t understand and if you need to, don’t be shy about getting advice on your contract documentation.
  5. Make sure you follow the procedures set out in the contract – don’t ignore them…

What If Things Still Go Wrong?

Construction is a contentious business, so it’s no surprise that disputes can arise, even if you haven’t done anything wrong.

Commencing any form of dispute resolution can be stressful and impact on your business, because no matter how strong your case, you can never be certain of the outcome.

That’s why it is absolutely essential that you get things right from beginning to end.

WANT TO KNOW MORE?

You need to know how to put all this together to make sure you keep disputes to a minimum, get paid, and protect your company’s financial well being.

So, please come  and discover the Secret Keys To Minimise Risk and Maximise Profit, that we have been putting into practice on behalf of Specialist Subcontractors for the last 27 years.

And they’re 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;

15 March – Oulton HallLeeds close to M1 and M62

22 March – The Nottingham BelfryNottingham close to M1 J26

29 March – The Village HotelCoventry close to M6 and M40

WHAT DOES IT COVER?

We will be unlocking the Secrets To Getting Paid on time every time 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!”

THE HEADLINES

  • 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;

  • Estimators,
  • Contracts Managers;
  • Project Managers;
  • Commercial Managers,
  • Quantity Surveyors,
  • Credit Controllers and
  • Directors

WHAT WILL WE GET OUT OF IT? The Secrets To Getting 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 tanya@streetwisesubbie.com 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.

Best regards

Barry

Streetwisesubbie.com

P.S. 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 info@streetwisesubbie.com today.