JCT Mini-Series: Managing Change and Variations. Handling Instructions & Valuing Change Correctly

Описание: In episode 130 of The Subcontractors Blueprint podcast, host Jacob Austin continues his JCT Subcontract mini-series focusing on managing change processes and variations. He explains how to handle instructions, value changes correctly, and protect margins through clear documentation and communication. Jacob highlights the importance of written confirmations, proper use of Schedule Two quotations, and including preliminaries in variation pricing. He also shares practical tips, such as maintaining a variation register, to help subcontractors avoid common pitfalls, ensure fair payment, and maintain control over project changes. This episode offers actionable advice for construction business owners.



KEY TAKEAWAYS:




• Most subcontractors lose margin through small, unmanaged changes rather than major disasters.


• Understanding and following the JCT change process is crucial to securing payment and protecting your margin.


• Always confirm verbal instructions in writing to create a clear record and avoid disputes over variations.


• Use the correct valuation hierarchy and include all associated costs, such as prelims and supervision, in your variation pricing.


• Maintain a variation register to track every change and its status, ensuring nothing gets missed or forgotten.


• Don’t wait for agreement before acting on instructions—prompt action and proper documentation are key to maintaining leverage and cash flow.




BEST MOMENTS:



"On most live jobs, you won't lose margin because of big dramatic disasters. You'll lose it in small changes that happen every week."



"The change process is, of course, admin. But it's not just admin. It's where your leverage lies."



"This is the simplest way to protect yourself from non-payment for things you've been told to do, just not in writing."



"A mistake a lot of subcontractors make is trying to treat all changes as if the schedule two applies, because acting like a price agreement is a prerequisite for action is going to get you in trouble."



"If the change increases the number of visits, the setup, the supervision or time on site, then your valuation of the change needs to reflect that reality."



"The detail you put into this quote protects you, and it helps you to justify the price that you're charging."



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/ (  / jacob-austin  )



Instagram - www.instagram.com/qs.zone/ (  / qs.zone  )



www.qs.zone/all-links (http://www.qs.zone/all-links)