Streetwise Subbie's Oct/Nov 2018 'Wise up Wednesday' Every StreetwiseSubbie 'Wise up Wednesday' email from this month
Author: Barry Ashmore
Essential Contract Law Our Wise Up Wednesday Guides are sometimes quirky, sometimes hard hitting, but always guaranteed to make you think and take no more than 2 minutes to read. Before you get to the usual November summary, I have a very important but very straightforward message for you, and it’s this; Without exception, those Specialist Contractors that take time to understand their contractual obligations, and do what needs to be done, when it needs to be done make £thousands more per year than those that don’t! Specialist Contracting in the construction and engineering industry can be a complicated business and it’s no surprise that at some point you are going to face problems relating to commercial and contractual matters. Our courses provide a practical no-nonsense approach to learning all the basic principles that can easily be understood and used for the bene t of your business on a day to day basis. We have been successfully presenting courses for Specialist Sub-Contractors for 16 years and we have practised what we preach, because in that time our experts have recovered literally millions of pounds on behalf of Specialist Subcontractors using simple techniques that you can easily learn. Thats why StreetwiseSubbie holds regular Contractual Training seminars around the UK. In November, we completed the most recent tour, but we will be holding more. To register interest in the 2019 sessions, just e-mail info@streetwisesubbie.com We will let you have dates as soon as they are con rmed.
Essential Contract Law
What’s The Construction Act? What’s The Construction Act? And What’s It Got To Do With My Business? The Construction Act, or to give it its full name the “Housing Grants Construction and Regeneration Act 1996 as amended by the Local Democracy, Economic Development and Construction Act 2009, has been law since 1 May 1998. But, you are not on your own if you don’t really understand how it a ects your business, and more particularly the contracts you enter into. I have been representing Specialist Contractors for 28 years (yes that’s even before the Construction Act), but since the Act became law, the same questions and problems have cropped up time and time again. Here are a few FAQ’s and the suggested answers. Payment
1. The Client’s or Contractor’s terms take no account of the minimum requirements of the Act (i.e. requirements relating to payment and adjudication)? The fact that the Act applies to them at all, still comes as a complete surprise to many Contractors! If any one or more of the minimum requirements are not met, the relevant part or parts of the Scheme for Construction Contracts comes into operation as a ‘default’ mechanism.
2. What if the Contract states ‘pay when paid’. ‘Pay when paid’ is made ‘ine ective’ by the Act, unless there is an express clause relating to insolvency of a third party upon whom payment depends. Watch out for that, as you may not know the credit worthiness of that third party.
What’s The Construction Act? And What’s It Got To Do With My Business?
What’s The Construction Act? 3. The Contractor just sends me a cheque with no details of how the gure is built up. The Act requires that you be given prior written notice of sums due and the basis of their calculation. If there is a signi cant di erence between your application and the Contractor’s payment, understanding his valuation is the rst step towards resolving the matter.
4. The Contractor sends me a notice showing me his valuation, but when he paid he has deducted ‘contra-charges. The Contractor is ignoring the Act. Once he has noti ed you of the sum due, he must make payment in that sum, unless he then gives you a Pay Less Notice setting out the basis of his calculation.
5. The Act gives me the right of suspension by not less than 7 days’ notice in the event of late payment. If the Contractor’s noti ed valuation is less than my application, can I suspend my works? No. The right of suspension is related to late payment of the sum which has been noti ed as due. There is no right of suspension merely because of a di erence of opinion regarding your valuation. What you have is a dispute about ‘valuation’ not ‘payment’. Adjudication
1. I have a dispute with a Contractor regarding the value of my variations. I have issued a notice of adjudication. Now I wonder if I might have been hasty? If you ‘ ew o the handle’ without and issued a notice without preparing your referral, then you could be creating a problem. The adjudicator will be on board in a matter of days and will be asking to see your referral notice. If you cannot comply, then your adjudication will collapse at the rst hurdle!
What’s The Construction Act? And What’s It Got To Do With My Business?
What’s The Construction Act? 2. I have a very complicated dispute with the Contractor regarding my account and a loss and expense claim. Is this a suitable case to refer to adjudication? Perhaps not. It is very di cult for an adjudicator to reach a sound decision on large, complex disputes in the limited time available. Potentially, identifying certain fundamental issues and referring those issues to the adjudicator. could be helpful to the parties may well aid the parties in reaching a settlement.
3. What kind of disputes are most suited to adjudication? Adjudication is ideal for settling cases of blatant disregard of the Act by the paying party. In general terms, the simpler the issues, the more suitable the case is for adjudication. Published: 10 October 2018
What’s The Construction Act? And What’s It Got To Do With My Business?
National Stress Awareness Day National Stress Awareness Day As you may be aware, the 7th November 2018 was National Stress Awareness Day. And we know that being a Specialist Contractor can be stressful, even on an average day, If it’s a day when you get a Payless Notice from the Main Contractor, or simply haven’t been paid when you should, then that stress level goes o the scale! Not getting paid can be the catalyst for a troublesome time for everyone, unless it is dealt with correctly. Putting it o Avoiding taking action is extremely common in the run up to not getting paid – it can help you to temporarily avoid that di cult conversation or issuing a suspension notice, but at what cost? According to a recent study 64% of people had put o a major decision because they felt it was ‘not the right time’. And therefore many of us could be holding onto worries and stress that is impacting our health and happiness while creating a hostile environment for all those involved. Stressed to the limit When something is playing on your mind, at any time, it can be highly stressful. But having the additional pressure of non-payment, can really push you to breaking point. Avoiding a di cult decision or discussion also uses up valuable emotional energy and the entire combination can result in mental, emotional and physical symptoms. The ripple e ect Not only does this situation a ect you, it impacts the people around you too. Those closest to you will notice your change in attitude or behaviour and atmospheres may become tense and awkward.
National Stress Awareness Day
National Stress Awareness Day Talking to someone else can really help you rationalise your thoughts and saying them out loud can sometimes give you a completely di erent perspective on them. Make sure the person you con de in is someone you trust but who will also be honest with you. You don’t want them telling everyone about your concerns, particularly if you decide not to act upon them. Think about you This may sound like a sel sh one, but your happiness is just as important as everyone else’s. If you’re not happy, then something needs to change. It is common for people to choose to put their business before their own needs, but ultimately, as an unhappy parent or partner you will make those closest to you unhappy too. Small Steps It is important to point out that making a decision doesn’t necessarily mean you need to commit to “going legal” or “getting contractual” as some people refer to taking action to get paid. It may just be to seek further advice or to investigate an alternative scenario. Sometimes people place too much pressure on fast tracking to the worst possible scenario, when in reality, they just need to make small steps to help them progress to a place of clarity. Published: 7th November 2018 If you want to know more, one small step you can take is to come along to one of our seminars It is a practical no-nonsense approach to learning all the basic principles that can easily be understood and used to protect your business on a day to day basis. I have been successfully presenting courses for Specialist Sub-Contractors for 22 years and together with our Consultants have recovered literally hundreds millions of pounds on behalf of Specialist Subcontractors using simple techniques that you can easily learn. So please look out for the list of 2019 seminars that will be published in your copy of 'Wise up Wednesday'. Published: 07 November 2018
National Stress Awareness Day
Is Interserve Next? Whatever happens to Interserve in the next few days or weeks, I will say the same thing I said about Carillion in January this year. I rmly believe it’s time for truth! It’s time that the government and every single decent individual working in the construction industry, whatever trade or profession, said “enough’s enough!” It’s time to stop ignoring the shameful and degrading way that some of the big players treat their subcontractors and suppliers! Everyone knows what a dire state of a airs we have in construction, but the government and others turn a blind eye to what is going on right under their nose. The government and other bodies are choosing to ignore the shameful way that Spelialist Sub-Contractors continue to go unpaid or under paid, for work properly and professionally carried out. Lack Of Payment Is Crippling The Industry Millions of pounds, goes unpaid, often, forcing the subbies to ght disputes and contest onerous claims, as certain Main Contractors unfairly retain monies paid to them by their clients and you the tax payer! StreetwiseSubbie.com, is a national organisation that exclusively helps the Specialist Contractors ght back against poor payment practices and is almost a lone voice in trying to change the status quo. The government issues yet another consultation and the worthies bicker over the side show of banning retention. Time after time our consultants are called in to help Specialist Contractors who are owed tens or hundreds of thousands of pounds, wrongly held back by Main Contractors. We have carried out payment surveys, given evidence to a Parliamentary inquiry and appeared on local and national radio. And despite Government and BuildUK claims to the contrary, the payment situation has gone from bad to worse, and the Supply Chain payment Charter has been branded a “Dismal Failure”.
Is Interserve Next?
Is Interserve Next? Support Those That Support You In a bid to help more Specialist Contractors resolve payment and related business problems, StreetwiseSubbie has extended its range of expert industry consultants who can help you to nd solutions to all sorts of business problems. The construction industry is a tough place to do business presently and StreetwiseSubbie provides the information you need to help you to solve business development and commercial and contractual problems, most commonly, getting paid. It seems that sometimes it takes a big name to fail to make people sit up and look at things happening in the industry in a di erent light, and people certainly took notice when Carillion failed. The problem is that no lessons were learned. Enough’s enough, let’s all work together for real truth and real change. Improving The Lives Of Specialist Contractors Our objective is simple. We want to improve the lives of Specialist Contractors. And we do that by bringing you cost e ective resources to help make your life easier and your business more pro table. By working with our Service Delivery Partners across the country, we bring you professional support in all the important areas of your business. And, because we only work with Specialist Contractors you can be sure that we know the kind of problems you face, and the solutions that work best. Saves a lot of time, and a lot of money. Please remember if you need any support please take action sooner rather than later. If you’re not sure what you need, or just want a second opinion, please give us a call on 01773 712116, or email info@streetwisesubbie.com And don't forget to forward this to all your team and all Specialist Contractors that you know; it’s true what they say – there is strength in numbers. Help us to help ALL Specialist Contractors. Published: 14 November 2018
Is Interserve Next?
Understanding Is The Key Complex contracts set out by large Contractors can often leave you struggling to understand what it is that you are actually being asked to sign up to, or may have already unwittingly signed up to. That isn’t surprising given that you didn’t start or grow your business so that you could be a construction lawyer! You just want to get on with the job of turning raw materials into part of the building, by applying your skill and expertise. That’s all well and good but lack of knowledge often manifests itself in you being treated poorly and paid less than your worth. And your a lack of legal expertise and contractual knowledge means not knowing how to deal with complicated excuses for delayed or non-payment. So, to stop things going wrong, or help you when they do, it’s essential that you have experienced construction advice at your disposal. Your mate down the pub, or your solicitor’s general experience doesn’t cover the complexity of construction cases. And whilst they do exist, specialist construction law rms can be very expensive. SO, WHAT’S THE ANSWER? First and foremost, you can “Wise Up” and these emails and the free information on our web site can help you do just that. Did you know that you can download our Contractual Toolkit, or have a paperback copy sent direct to your door, absolutely free of charge or obligation? Just Mouse Here Secondly, you can get 25% o The Streetwise Subbie 4th Edition – Mouse Here The Streetwisesubbie 4th edition is a rework of the original book “The Streetwise Subbie” by Jack Russell, and now I have brought Jack’s original work bang up to date with help and advice on how to tackle the modern-day world of subcontracting in the construction Industry. But hurry the publishers o er only lasts until December 2018.
Understanding Is The Key
Understanding Is The Key IF YOU NEED MORE SUPPORT Our team can help you sort out all sorts of di culties and settle disputes, especially if you’re not sure which route to take or feel you’re being denied what you’re rightfully owed. WHAT WE CAN DO Construction disputes of all shapes and sizes are not uncommon due to the complexity of construction – but there are plenty of di erent ways to settle the matter. Our specialist Construction Contracts Consultants are able to give expert advice and maximise your recovery in the following areas: INTERIM PAYMENTS During most projects, interim payments are made throughout the construction period before nal accounts are decided. If you feel your payment has been unjustly delayed, is too small, or need help constructing or serving notices, we can help you to resolve it before it escalates into an unmanageable amount. RETENTION RECOVERY Recovering retention money after a job is complete can sometimes be di cult, and Contractors love to make excuses to delay repayment or to avoid paying altogether. StreetwiseSubbie has helped countless Subcontractors get back the retention which is rightfully yours. And we can do that on No Win No Fee basis too! FINAL ACCOUNT DISPUTES Specialist Contractors nal accounts are often attacked by Contractors even after things have been agreed during the job, and especially on large projects that have taken a long time to complete. Things can get very complicated, but we can help you ascertain what you should receive from a nal account and help you resolve any reasons for non-payment.
Understanding Is The Key
Understanding Is The Key DEFECTS AND DESIGN If you are involved in a dispute over defects, or design our specialists are on hand to ensure you are not getting the blame for something that isn’t your fault. Contact us for specialist construction advice and ensure your rights are protected. ADJUDICATION Our Construction Contracts Consultants have assisted Specialist Contractors in literally hundreds of adjudication cases. We can help you achieve the best result from the adjudication process, or even avoid adjudication all together. If you have been served a Notice of Adjudication, or would like to issue one yourself, it is crucial that you take the right advice as soon as possible, so please call our construction law specialist team for a free no obligation chat. DISPUTE RESOLUTION Sometimes adjudication is not your best option. Our construction team can advise which method of construction dispute resolution is right for you, whether that be arbitration, mediation, litigation or indeed adjudication. Contact us today for advice on which course of action best ts your case. PAYMENT STRUCTURES Our membership options are a very cost-e ective way to obtain substantial discounts on many of our construction dispute resolution services, some of which are available on a No Win No Fee Basis. So why not come and join the growing, number of Streetwise Buddies who are enjoying the bene ts that membership has to o er? Improving The Lives Of Specialist Contractors Our objective is simple. We want to improve the lives of Specialist Contractors. And we do that by bringing you cost e ective resources to help make your life easier and your business more pro table.
Understanding Is The Key
Understanding Is The Key By working with our Service Delivery Partners across the country, we bring you professional support in all the important areas of your business. And, because we only work with Specialist Contractors you can be sure that we know the kind of problems you face, and the solutions that work best, which saves a lot of time, and a lot of money. Published: 21 November 2018
Understanding Is The Key
Are You Prepared? The past few years have been anything but plain sailing for the construction industry, and the total number of construction insolvencies in England and Wales rose 12.4% year on year in the second quarter of 2018, according to o cial gures. There were 696 insolvencies in construction in the second quarter of this year, compared to 619 in the same period a year before,making it the highest second-quarter tally of construction insolvencies since Q2 2014 (when there were 716 construction insolvencies), with the bulk of the increase coming from specialist rms. The year ahead isn’t set to be easy either, with no-one truly knowing what is round the corner. That’s why we have put together our Streetwise guide to being well prepared for any eventuality in business: Ask Questions and You Will Get Answers If you have some questions or you are unsure about what to do, don’t be afraid to ask others for help and advice. But make sure you ask the right people, such as the seasoned professionals at StreetwisesSubbie. One of our key strengths is our nationwide team of independent professionals with literally lifetimes of expertise in all manner of construction related businesses covering just about every business solution you could ever need to know. Try our Ask Streetwise feature: Mouse Here Problems WILL Occur It is inevitable that at some point during your business’s lifespan a serious problem of some sort will occur, and so you need to be prepared for this eventuality. For example, if you were taken ill do you have a trained team who you know you could trust and rely on to keep everything running smoothly without you? If not, it’s time to start training one. If you aren’t getting paid, or you are being clobbered with a claim for delays, check out what we can do to help when the going gets tough. Just Mouse Here Be Flexible and Ready For Change The construction industry may have been stuck in its ways for many years, but it doesn’t mean you have to be. Review the focus of your services to keep you ahead of the pack and ready to secure a major advantage. Look at other areas and pro table niches in which your company could operate, maybe come and talk to one of our experts about it.
Are You Prepared?
Are You Prepared? What Do You Know? Do you sometimes feel overwhelmed by all the di erent challenges of running your company? You aren’t alone there, many Specialist Contractors feel exactly the same. But that doesn’t mean you can’t learn, and it certainly doesn’t mean you shouldn’t ask for help! We have some great guides and information available. Just Mouse Here. And if you need a hand give us a call on 01773 712116, and have a chat with our friendly team. A Little Help From Your Friends Not everyone in the construction industry is in direct competition with each other. In fact when we work together we can earn more money and get complex jobs done a whole lot faster when we are in contact with a variety of skilled construction professionals in all areas who are willing to team up. Don’t Cut Marketing, Improve It When money gets a little tight, many people reduce their sales and marketing. Short term gain = long term pain! Without a steady ow of the right kind of enquiries margins will be squeezed and work will dry up. Come and talk to us about Lead Pro! It’s a quick and easy done for you system. Improving The Lives Of Specialist Contractors Our objective is simple. We want to improve the lives of Specialist Contractors. And we do that by bringing you cost e ective resources to help make your life easier and your business more pro table. By working with our Service Delivery Partners across the country, we bring you professional support in all the important areas of your business. And, because we only work with Specialist Contractors you can be sure that we know the kind of problems you face, and the solutions that work best, which saves a lot of time, and a lot of money. Published: 28 November 2018
Are You Prepared?
Win Work, Get Paid, Make Money!
StreetwiseSubbie Exclusively for Specialist Sub Contractors in the Construction and Engineering industries. Please remember that we are here to provide solutions exclusively for Subcontractors. Â If you want access to professional solutions that work, then please give us a call on 01773 712116, or email StreetwiseSubbie.com today. StreetwiseSubbie.com Limited Shanakiel, 17 Ilkeston Road, Heanor Derbyshire DE75 7DR Tel: 01773 712116Â Email: info@streetwisesubbie.com Learn more
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