Navigating the Challenges of Changes in Construction

Episode #3

Imagine a world where changes are the norm. Jacob takes you on a journey through various change scenarios, from scope shifts to different work conditions. Hold onto your helmets as we demystify the JCT contract, your trusty guide through construction changes.

Timing is everything, and Jacob's got the inside scoop on managing changes like a pro. Hint: detailed records are your new BFFs. Ever wondered about the art of valuing changes? Jacob's got your back with insights into pricing and cost calculation methods that will leave you feeling like a financial guru.

 

KEY TAKEAWAYS

  1. Changes in the construction industry can include changes in scope, quantity, or the way work is carried out on site. These changes can be a source of frustration and administration problems for subcontractors.

  2. The JCT contract is the most common contract in the construction industry and has provisions for handling changes. Clause 5.1 of the JCT contract defines changes as alterations or modifications to the design, quality, or materials of the works.

  3. Timing is crucial when it comes to changes. The cost and impact of a change can vary depending on when it is instructed. It is important for subcontractors to take records and assess the impact of changes on their work.

  4. Instructions from the contractor must be reasonable and within the subcontractor's capabilities. Subcontractors are expected to comply with instructions within seven days. Failure to comply may result in the contractor hiring someone else to complete the work and deducting the additional costs from the subcontractor's payment.

  5. Valuing changes can be complex and depends on factors such as the character of the change, whether conditions have changed, the quantity of the change, and the impact on time and cost. Different valuation methods, such as pro rata, fair rates and prices, or time and cost basis, may be used depending on the circumstances. It is important for subcontractors to understand the valuation mechanism and provide sufficient information and calculations to support their pricing.

BEST MOMENTS

  1. "Changes can be changes in scope, changes in quantity or the way that work is carried out on site."
  2. "Timing is everything when it comes to changes."
  3. "If the conditions have changed, get your hand out for it, talk to your site manager about it, explain the issue and then confirm it back to them."
  4. "Valuing the change really could be its whole own episode and we will do that at a later time."
  5. "Make sure you provide enough information. Preferably you might want to look at marking up some drawings, providing copies of emails and instructions, any photos that you can take, any records that you've got of progress so that you can clearly demonstrate how much of your work has been affected by an instruction or a change."

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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