In episode 49 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone explores the evolving landscape of main contracting and its implications for subcontractors. He differentiates between main contracting and subcontracting, emphasising the shift from traditional models to modern practices that rely heavily on subcontractors. Austin discusses the challenges faced by both main contractors and subcontractors, including reduced risk, lower profit margins, and workforce stability. He highlights the broader industry impacts, such as the sustainability of skilled labor and mentorship for apprentices.

KEY TAKEAWAYS:

• Explanation of the differences between main contracting and subcontracting, and the role of principal contractor.
• Comparison of the historical and modern roles of main contractors, including labor, divisions, and profitability.
• The trend of main contractors reducing risk by subletting to multiple subcontractors.
• The impact of industry practices on skilled labor, mentoring, and the need for consistent employment.
• Challenges faced by main contractors, including insolvencies, and the impact on subcontractors' workforce and income stability.

BEST MOMENTS:

"Main contracting typically comes from the role of the main contract, as in the document in force between the client and the contractor delivering the work on the client's behalf."

"Main contracting almost was more entrepreneurial previously, because what you would see is that a lot of main contractors had their special civil division, and they had a housebuilding team."

"If people only knew that this is the way that one of the largest industries in the country is operating regularly, I think there'd be a similar load of uproar about it."

"Consistent employment is the only way that we're going to see any kind of rise in the number of skilled operatives coming into the industry."

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/

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