Maximizing Profitability through Acceleration

Episode #12

Get ready to dive into the fascinating topic of acceleration, as Jacob takes us on a journey through its complexities. This is when subcontractors are asked to speed up their work due to project delays or scope changes. Jacob shares smart strategies like adjusting work schedules and overlapping phases to handle acceleration. He also discusses the costs involved, such as overtime and extra supervision. Jacob stresses the importance of clear communication between subcontractors and contractors about expectations, costs, and dealing with delays. He provides insights on managing costs, payment terms, and the need for a revised project plan to track progress. In a nutshell, this episode offers valuable advice for subcontractors dealing with the challenges of acceleration in their projects.

KEY TAKEAWAYS

  • Acceleration in construction refers to being asked to complete a project or a portion of it at a quicker pace than originally planned, often due to delays or scope changes.
  • When asked to accelerate, contractors may first try to reschedule and re-sequence work to minimize delays and increase efficiency.
  • Paid acceleration involves considering the additional costs associated with working at an accelerated pace, such as overtime, additional supervision, increased labour, and potential disruptions.
  • It is important to establish clear agreements and documentation regarding the scope, timeline, and costs of acceleration to avoid disputes later on.
  • Considerations for acceleration include revising the program, adjusting payment terms, maintaining cash flow, and addressing potential impacts on other elements of the project.

BEST MOMENTS

"A lot of the time that will happen because there's been some kind of delay on your project."

"You might have a situation where you work some kind of hybrid shifts, so that you get two lots of people who work a full day, an eight hour day, but they both involve working some antisocial hours."

"You don't want to agree a guarantee that I will get this job finished by this date if you pay me this. Because you can all set out with the best intentions and all good endeavours follow."

"It might be worth considering if you're accelerating only a portion of the work that by getting rid of that portion early there might well be impact on other elements."

"Hopefully I've given you some useful pointers there that you can take away when you've got that situation on one of your jobs."

HOST BIO

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, 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/

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