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Here are a few of our most recent Press Releases. If you need in depth comment or analysis on any matter relating to the construction and engineering industries please do not hesitate to contact us.

As Published By ABC & D Magazine February 2010

 

Bad News For The Whole Construction Industry!

Abuse Of Sub-Contractors Is On The Increase Again!

 

Unfortunately in lots of ways nothing much has changed in the construction industry in the last 40 years, or so says Construction Contracts Consultant Barry Ashmore.

 

“Specialist sub-Contractors are still being abused by Contractors but unfortunately  in the current economic climate the stakes are even higher because they cannot be certain that the company holding on to their money is going to be around to pay out when the time comes!

 

The construction industry is suffering in the current economy and it is the Sub-Contractors who are taking the brunt of it. Abuse by Contractors is not only on the increase it is set to get a whole lot worse during 2010.

 

There are lots of Contractors out there who have won work at negative margins and when those chickens come home to roost they will be doing their utmost to find a profit from somewhere.”

 

That can mean only one thing - their Sub-Contractors will be right in the firing line!

 

And as many Architects, Engineers and QS’s are now engaged as Sub-Contractors on PFI and design and build projects they could also find themselves on the receiving end.

 

The ridiculous thing is that the whole industry turns a blind eye to the abuse that is going on and that can only be bad for the industry as a whole says Barry

 

“If Contractors are only surviving because they are “screwing” their Sub-Contractors, what does that say about the prospect of long term improvements in the industry?”

 

In the current climate everyone is desperate for the work!  So the last thing on everyone’s mind is being vigilant about the terms of the contracts they are entering into.

 

For instance, as the law stands, Clients and Contractors can still get away with adjudication clauses that effectively take away their Sub-Contractor's right to adjudication by making them responsible for all the costs! How is that fair and reasonable?

 

Onerous terms usually occur in the Client's or Contractor’s own "non-standard" documents but can also arise as amendments or "addenda" to Standard Form contracts.  Such terms and conditions are not just going to make your life difficult they may cost you a substantial amount of money and worst case scenario they may cost you your business!

 

Obviously the best time to find out about these onerous provisions is at the enquiry stage before you have submitted your price.

 

If your tender is successful then you will be invited to enter into a contract or possibly sent an Order or Contract to sign. You need to act quickly and carefully. Don’t think that you can start work, even design work or ordering materials, and just because you haven’t signed the contract everything will be alright. It won’t!

 

The first line of defence lies is recognising onerous terms and conditions in the first place.  Whilst you may be tempted to ignore the small print, you may subsequently find that a contract has come into force incorporating onerous terms which have fatal consequences for your business.

 

The contract conditions should be carefully checked, particularly if they are set out in a completely non-standard form. 

 

Remember also to look for clauses that are not there, as well as checking the ones that are.  For instance, if you are designing the works and the contract is silent about design liability, then you will have a very onerous “fitness for purpose” obligation. This is much worse than it sounds because you are literally guaranteeing your design will satisfy the Employer’s needs irrespective of what you knew or didn’t know about his business or industry.

 

Having identified any onerous clauses do not let them slip into the contract by mistake.

 

In order not to be caught by onerous provision you must make it perfectly clear that you are rejecting their onerous terms. Notice I said rejecting their terms, not rejecting their order.

 

There will be times when you have to take a commercial decision to accept onerous terms and conditions of contract.  In this situation you need to be very clear about the risks you are running and manage them accordingly.

 

Specialist Sub-Contractors often complain that they don't know who to turn to for advice and that there is nothing they can do to improve their position. But are lots things they can do and one essential resource that provides information and advice that applies to all Specialist Sub-Contractors in the construction and engineering industries can be found at www.streetwisesubbie.com.

 

With Free access to a panel of no fewer than 17 leading industry experts and with information on over 40 different aspects of Specialist Sub-Contracting it is a great place to start.

 

You never know it might just protect you from what is lurking around the corner! 

 

 

Barry J Ashmore DipLaw DipArb FCIArb MCMi Ashmore Consulting

Dispute Resolution Adjudication Mediation Commercial and Contractual Consultancy

 

 

ROGER KNOWLES HELPS SUB-CONTRACTORS GET STREETWISE!

 

Roger Knowles the original construction contracts guru has joined the panel of experts on www.streetwisesubbie.com.

 

It’s no surprise that some people in the industry regard Roger as “the father of dispute resolution”.  More than 30 years ago he set off on a mission to protect the sub-contractors.

 

It turned out that there was such a massive demand for his services that his dispute resolution business grew into a £30m international enterprise, which three years ago Roger sold for £7m to Hill International.

 

"When I set off in 1973, there was only really me in the business and I was motivated by a genuine desire to help the smaller companies who were being forced out of business.

 

Life as a Specialist Sub-Contractor has never been easy” said Roger “but in today’s economic client Sub-Contractors need all the help they can get, and that’s what Streetwisesubbie.com is all about.”

 

The site is designed to be a resource for all specialist sub-contractors in the construction and engineering industries irrespective of their particular specialism. It provides a wide range of advice on all aspects of running a Specialist Sub-Contracting business, from employment issues through to finance and debt collection – and, of course, dispute resolution.

 

One key aspect of the site is the ‘Virtual Team’ of experts in all these fields who will provide answers to specific questions posted by Sub-Contractors which subscribe to the site.

 

The Virtual Team has expertise across a whole range of disciplines so whatever you need to know Streetwise aims to find the answer for you!

 

If you are happy to share your question and the answer then the Ask Streetwise facility provides an online problem solving facility which then helps all other “Buddies” as Specialist Sub-Contractors are known on the site.

 

If it’s something that you would rather remain confidential then Streetwise Confidential will keep your question and the answer strictly confidential between you and Streetwise.

 

Roger Knowles has joined the team as the contractual expert and will post his weekly “Roger Knowles Hot Tip”.

 

MIKE HOLLAND BECOMES A SUPER HERO

TO HELP SUB-CONTRACTORS GET STREETWISE!

 

Mike Holland, managing director of specialist construction and engineering industry PR and marketing firm Smye Holland Associates, has joined the panel of experts on www.streetwisesubbie.com.

 

The site is designed to be a resource for Specialist Sub-Contractors in the construction and engineering industries. It provides a wide range of advice on all aspects of running a Specialist Sub-Contracting business, from legal and employment issues through to finance and debt collection – and, of course, marketing.

 

One key aspect of the site is the ‘Virtual Team’ of experts in all these fields who will provide answers to specific questions posted by sub-contractors who utilise the site. Mike Holland has joined the team as the marketing expert for StreetwiseSubbie.

 

He said: “Most of the work in the building and construction industry is undertaken by specialist sub-contractors”

 

“Unfortunately the current recession has had a massive impact and there is obviously much less work being done in the industry as a whole.  Specialist Sub-Contractors are facing stiff competition and it has never been more important for sub-contractors to market themselves properly.

 

“I hope through StreetwiseSubbie we can provide some help to companies that have perhaps never previously had to consider marketing because the work has always been there when they needed it.”

 

Mike’s own background is in the construction industry. He started his professional career as a structural engineer before moving first into journalism and then into marketing and public relations.

 

Smye Holland Associates works for a wide range of companies involved in the building and construction industries, ranging from contractors and sub-contractors to developers, surveyors and suppliers of building materials and components.

 

Zap!  **Kapow** Thwack!

 

With one mighty blast of Contractivity, the Streetwisesubbie rights the wrongs perpetrated by the evil Contractor Stabard and his QS henchman Bayvis!

 

Not exactly a politically correct view of life in the construction industry, but one that isn’t so far from reality for some. Except that there are still lots of

Specialist Sub-Contractors who don’t know where to find a Super Hero when they need one.

 

A new web site launched this month aims to put that right by connecting Specialist Sub-Contractors with all kinds of expertise as and when they need it.

 

Streetwisesubbie.com has a distinct comic book appearance. According to Barry Ashmore its creator, that is very deliberate.

 

“When you look at some web sites they are either deadly boring or all flashing banners and adverts. I wanted to capture the attention and (sorry ladies), but as most Specialist Sub-Contracting companies are run by men, it made sense to work on the basis that men are just big kids at heart.”

 

But the facilities it provides are anything but child like.

 

They include Ask Streetwise and Streetwise Confidential which enables you to ask the Streetwise team of experts for advice on any matter you like relating to your business. So, as it says on the site “...if you are anxious about acceleration, bothered by bonds, concerned about claims...mad about marketing, troubled by taxes or vexed by VAT, let Streetwise and his Virtual Team solve the problem for you!”

 

The Virtual Team has expertise across a whole range of disciplines so whatever you need to know Streetwise aims to find the answer for you!

 

If you are happy to share your question and the answer then the Ask Streetwise facility provides an online problem solving facility for which is not just for your benefit, as it helps all other “Buddies” as Specialist Sub-Contractors are known on the site.

 

If it’s something that you would rather remain confidential then Streetwise Confidential will keep your question and the answer strictly confidential between you and Streetwise. 

 

Either way the intention is that you get an answer free of charge from the panel of experts which is up to date, practical and effective.

 

If you come across a new word or phrase or situation but don’t want to admit you don’t know the answer, or don’t want to appear stupid in front of others. No problem!

Just go to the Streetwise Wiki and get a quick definition from the dictionary of key words and phrases commonly found in the construction and engineering industry.

 

A “Just in Time” Learning Environment

 

The site also features Streetwise Guides. These, are a series of short easy to read guides on a whole range of topics relevant to your success as a Specialist Sub-Contractor.

Ashmore says that as the site develops the intention is to add more guides and training resources so that you can develop your knowledge on a “Just in Time” basis. In other words you don’t need to learn stuff just in case you need it. You can learn stuff as and when you need it!!

 

Taking a quick look down the right hand side of the site reveals sections on all manner of subjects from “adjudication” to “Rich Thinking”. What is “Rich Thinking”, well you will just have to take a look and find out!

 

Again, Ashmore says that these sections are being developed to provide the most comprehensive and relevant content he can find;

 

“They need to be comprehensive, because to be successful, there is so much more for a Specialist Sub-Contractor to know than how to be good at their particular specialism. They need to be relevant because we are all busy people, and none of us have enough time to sort the wheat from the chaff. So, Streetwise will do it for you!”

 

Up To Date Exclusive and Topical 

 

If keeping up to date with the latest buzz around the industry is your thing, then you can join the debate on the Streetwise Forum and share your views with fellow Specialist Sub-Contractors. Ashmore hopes this will become the fastest growing construction forum on the internet.

 

He believes it is the only forum exclusively for Specialist Sub-Contractors, and the only one to encourage real grass roots knowledge and information sharing. His view is that Sub-Contractors should mix more readily with their colleagues from other specialisms, as they share many common problems, and would all benefit from the experience.

 

Whilst all Specialist Sub-Contractors are welcome Contractors are definitely banned!

 

“Some people might say that I am stoking up discord between the Specialist Sub-Contractors and the Contractors” says Ashmore. “All I can say is that anyone that thinks like that has probably have never been a Sub-Contractor or advised one professionally. As an ex Subbie who has spent the last 20 years as a professional, resolving disputes on behalf of Specialist Sub-Contractors, let’s just say I live in the real world!”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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