Protect Your Profits: Effective Management of Compensation Events Under NEC Contracts скачать в хорошем качестве

Protect Your Profits: Effective Management of Compensation Events Under NEC Contracts

In episode 123 of The Subcontractors Blueprint podcast, host Jacob Austin  provides construction business owners with practical guidance on managing compensation event clauses under NEC contracts. He explains the crucial differences between early warnings and compensation events, outlines notification and quotation procedures, and emphasises the importance of timely communication, thorough record-keeping, and contract compliance. Using real-world examples, Jacob demonstrates how proactive management of these clauses can protect subcontractors’ interests, improve cash flow, and foster collaborative relationships with contractors—ultimately supporting business growth and successful project delivery. KEY TAKEAWAYS: • The episode explains the difference between early warnings and compensation events in NEC contracts, emphasising their roles in proactive risk management. • Early warnings are about flagging potential risks before they happen, while compensation events address actual changes that impact time or cost. • Failing to issue early warnings can result in reduced compensation, as contractors may assess claims as if warnings had been given. • Strict notification and time bar requirements mean subcontractors must act quickly and provide clear evidence to protect their entitlements. • Compensation events are assessed based on defined costs, and well-prepared, transparent quotations are essential for successful claims. • Collaboration, clear communication, and following contract processes are key to avoiding disputes and ensuring fair outcomes on NEC projects. BEST MOMENTS: "The principle behind [Early Warnings]  is that it's a proactive risk management tool to flag up issues that could impact time, cost and quality." "Early warnings are future events—they may happen or they might not. Compensation events are guaranteed to happen." "Compensation events are assessed on the basis of defined cost, which is essentially the reasonable cost that you incur yourself, plus an applicable fee." "A well-prepared quote is critical. It needs to be clear with breakdowns of your labor, plant, materials, and descriptions of how it's been calculated." "The point is to create early and binding agreements as you go throughout the contract, to avoid the need for lengthy disputes and final account meetings." "The straight talking truth is that compensation events can become contentious if people can't get around the table and talk sense and come to sensible agreements."   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 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)