How Can Subcontractors Master the Final Account Process for Maximum Profitability?

In episode 98 of The Subcontractors Blueprint podcast, host Jacob Austin is talking all things final accounts. He outlines how to properly prepare and present the final account—including variations, provisional sums, and claims—to maximise profitability and avoid missed payments. Jacob highlights common pitfalls, such as missing deadlines and relying on verbal instructions, and stresses the importance of clear documentation and understanding legal frameworks. The episode offers practical advice to help subcontractors secure all entitlements, strengthen client relationships, and improve their contract management practices.

KEY TAKEAWAYS:

•  Importance of managing the final account process in subcontracting within the construction industry.
•  Key components to include in a well-structured final account, such as original contract sum, variations, provisional sums, and acceleration costs.
•  Common pitfalls subcontractors face, including missing deadlines, relying on verbal instructions, and unclear variation pricing.
•  Strategies for effective final account preparation, including maintaining a variation log and keeping adequate records.
•  Strategies for effective final account preparation, including maintaining a variation log and keeping adequate records.

To listen to the episodes on Variations mentioned in this show, please see the following links:

Episode 3: Navigating the Challenges of Changes in Construction

Episode 18 - Valuing Changes

Episode 30 - 5 Steps to Change Success

 

BEST MOMENTS:

"The final account is your last opportunity to protect your profit."

"If you mess it up or miss things, you could be leaving thousands of pounds on the table that you've earned with your own blood, sweat and tears on site."

"It's harder to negotiate up than it is to negotiate down in this situation. So you need to mark the dates. It pays to be earlier than the deadline, and it's a disaster to be after it."

"Treat the final account with the same energy you treated getting the job. Proactively follow up your submission."

"A well-managed final account can actually strengthen your relationship with a main contractor and even the client. It shows you’re professional and you're on top of things."

 

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