20 min
The Ultimate Guide to Mastering Subcontractor Final Account Procedures The Subcontractors Blueprint
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In episode 39 of The Subcontractors Blueprint podcast, Jacob Austin delves into the critical topic of final account procedures for subcontractors. Drawing from a friend's challenging experience, Jacob underscores the importance of a thorough understanding of the final account process. He offers expert advice on the content and structuring of final account statements, the intricacies of the JCT contracts, and the best practices for a smooth final account journey. Jacob emphasises the value of regular submissions and preparation for final account meetings, while also clarifying the timelines for submissions, disputes, and payments. His commitment to empowering SME contractors with practical knowledge shines through, as he advocates for knowledge sharing within the subcontracting community.
KEY TAKEAWAYS:
The importance of final account procedures for subcontractors.
What a final account should include for different types of contracts.
Structuring a final account statement.
Best practices for subcontractors in navigating the final account process.
Preparing for a final account meeting.
Timescales for submitting and disputing final account calculations and when final payments should fall due.
BEST MOMENTS:
"Sadly, he'd not been submitting cumulative valuations properly, and at some point in the job, some of the early variations he completed had dropped off his application.”
"Obviously, that was disappointing for him, and with hindsight, he would do different things."
“On an NEC project, I think this way of working is ideal. And the proviso that this works on is that each time there is a change, there's a compensation event as it's referred to under that subcontract."
"Of course, by the time you finished the job, all of the unknown items should be known, and therefore all of the unknown sums of money should have been firmed up and the provisional sum omitted and a variation added back to cover the piece of work."
"a good way to approach your final account is to include a rolling final account within your regular interim applications, because what you want to happen is for there not to be any surprises when it comes to getting around the table to make that final assessment.”
For more information on Provisional Sums, and other provisional items mentioned in this episode, click here listen to Episode 27: https://podcasts.apple.com/gb/podcast/the-subcontractors-blueprint/id1701638267?i=1000643452382
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
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 £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/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
In episode 39 of The Subcontractors Blueprint podcast, Jacob Austin delves into the critical topic of final account procedures for subcontractors. Drawing from a friend's challenging experience, Jacob underscores the importance of a thorough understanding of the final account process. He offers expert advice on the content and structuring of final account statements, the intricacies of the JCT contracts, and the best practices for a smooth final account journey. Jacob emphasises the value of regular submissions and preparation for final account meetings, while also clarifying the timelines for submissions, disputes, and payments. His commitment to empowering SME contractors with practical knowledge shines through, as he advocates for knowledge sharing within the subcontracting community.
KEY TAKEAWAYS:
The importance of final account procedures for subcontractors.
What a final account should include for different types of contracts.
Structuring a final account statement.
Best practices for subcontractors in navigating the final account process.
Preparing for a final account meeting.
Timescales for submitting and disputing final account calculations and when final payments should fall due.
BEST MOMENTS:
"Sadly, he'd not been submitting cumulative valuations properly, and at some point in the job, some of the early variations he completed had dropped off his application.”
"Obviously, that was disappointing for him, and with hindsight, he would do different things."
“On an NEC project, I think this way of working is ideal. And the proviso that this works on is that each time there is a change, there's a compensation event as it's referred to under that subcontract."
"Of course, by the time you finished the job, all of the unknown items should be known, and therefore all of the unknown sums of money should have been firmed up and the provisional sum omitted and a variation added back to cover the piece of work."
"a good way to approach your final account is to include a rolling final account within your regular interim applications, because what you want to happen is for there not to be any surprises when it comes to getting around the table to make that final assessment.”
For more information on Provisional Sums, and other provisional items mentioned in this episode, click here listen to Episode 27: https://podcasts.apple.com/gb/podcast/the-subcontractors-blueprint/id1701638267?i=1000643452382
Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.
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 £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/
Instagram - www.instagram.com/qs.zone/
www.qs.zone/all-links
20 min