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- Welcome listeners to a new episode of The Construction Cashflow Podcast.

- Today, we're peeling back the layers of Chancellor Jeremy Hunt's Autumn Statement, focusing on the 55-day payment term for government contracts.

- Pose a thought-provoking question: “Is this just a 'wishy-washy' approach by the government, or a step towards real change in the construction industry?”

Key Themes:

1. The 55-Day Payment Rule: More Than Meets the Eye?

  - Chancellor Hunt announces a new rule: Companies bidding for government projects over £5m must prove they pay invoices within 55 days.

  - Discuss the potential impact of this rule on larger versus smaller contractors.

  - Question the real effectiveness of this policy in addressing late payment issues.

2. The Reality of Cash Farming in Construction

  - Highlight how some larger contractors might use extended payment terms strategically.

  - Examine the fine line between managing investments and maintaining ethical payment practices.

  - Reflect on the potential consequences for smaller businesses in the supply chain.

3. Invoice Dates Versus Contract Dates: A Critical Oversight?

  - Delve into the discrepancy between focusing on invoice dates instead of actual contract dates.

  - Explore how this focus might disadvantage smaller trades that rely on regular cash flow.

  - Debate why the Chancellor’s statement might miss addressing this crucial aspect.

4. Navigating Late Payments: Strategies for Contractors

  - Offer practical advice for contractors on how to safeguard against late payments.

  - Discuss the importance of understanding contract terms and effective financial planning.

  - Encourage contractors to proactively manage their invoicing and payment follow-ups.

5. Critique of the Chancellor's Statement:

- Challenge the limited scope of the 55-day rule and its effectiveness for smaller contracts.

- Question the lack of a more robust legislative approach to ensure fair payment practices.

- Criticise the statement for not covering contracts under £5m, potentially overlooking a significant part of the industry.

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Episode Summary

In this episode, Stu Davidson discusses how specialist subcontractors and suppliers can protect themselves from late payments, retentions, and complex payment terms.

Stu recommends the following:

• Do your due diligence on the main contractor or tier one that you're working for. Talk to other specialists to see if they get paid on time, check out the contractor's credit rating, and make sure you understand the payment terms.
• Have your own terms and conditions in place. These should align with your values and business needs. Don't be afraid to negotiate with the main contractor on things like retention periods and payment terms.
• Make sure you're submitting your applications correctly. This includes submitting them on time, to the right person, and in the correct format.
• Keep good records. This will help you support your applications and make it easier for the main contractor's QS to assess them.
• Late payments are still a major problem in the construction industry. 68% of payments are late, costing the industry £11.4 billion.
• Specialist subcontractors and suppliers are often the most vulnerable to late payments.
• There are a number of things that specialist subcontractors and suppliers can do to protect themselves from late payments.
• Doing your due diligence on the main contractor, having your own terms and conditions in place, submitting your applications correctly, and keeping good records can all help to reduce the risk of late payments.
• Using a PVA tracker can also be a helpful way to keep track of your progress and applications.
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By following these tips, specialist subcontractors and suppliers can increase their chances of getting paid on time and protect their businesses from financial risk.

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Episode Title: Vistry's 10% Cut: How to Negotiate as a Specialist Contractor

Host: Stu Davidson

Summary: Vistry's recent demand for a 10% cut from its suppliers has caused ripples in the construction industry. In this episode, Stu Davidson discusses how specialist contractors can negotiate effectively in response to this demand.

Key Points:

• Stay calm and don't react impulsively.
• Request a face-to-face discussion with Vistry.
• Believe in yourself and understand your worth.
• Know your numbers and set boundaries.
• Consider consulting with experts.
• Be prepared to walk away from the deal if necessary.
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Additional Thoughts:

• Don't be afraid to collaborate with other suppliers.
• Be prepared to stand your ground and walk away if necessary.
• Remember that you're not alone.
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Episode Resources:

• Previous episodes of The Construction Cashflow Podcast
• Experts such as Yosof Yewing (episode 16), Sean Bradley (episode 17), Carly Thorpe (episode 26), Craig Alexander Rattray (episode 36), Paul McDevitt (episode 27), Tracey Westell (episode 41), and Joe Lynch (episode 32)

Call to Action:

Stand up for your rights and don't accept unfair demands from Vistry. Join the growing movement of suppliers who are fighting for a fairer deal.

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Constriction Cashflow is Sponsored by Know Your Numbers

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🎧 Don't Miss This Game-Changing Episode! Maximize Your Construction Cashflow with Credit Management Expert Tracey Westell! 🎧

Hey, all you hardworking construction professionals out there! Struggling with cash flow? Losing sleep over unpaid invoices? This is the episode you can't afford to miss. Stu Davidson is back with the Construction Cashflow Podcast, bringing you the kind of insider knowledge that could revolutionize your business. 

Are you a subcontractor grappling with the influence of bigger contractors? Stu dives deep into this topic, cautioning you about the pitfalls of getting underpaid over time. Then enter Tracey Westell, the genius behind Pecunia, who started her journey in a local authority office and is now a go-to guru in credit management. 

Imagine a world where you're not just asking for your payment but have an entire, well-knitted team and strategy to make sure the money lands in your account—on time, every time. Tracey takes us on a tour through the complex but highly rewarding world of credit management. Trust us, by the end of this episode, you'll be taking notes.

Considering taking on high-risk projects? Hold your horses! Stu's got a golden nugget for you—tender under a separate entity and protect your core business. This is the kind of practical, hands-on advice you'll only find on the Construction Cashflow Podcast.

But what about those contracts that look too good to be true? Both Stu and Tracey weigh in on why you should think twice before signing on that dotted line. Learn why it’s crucial to get those contracts translated into layman’s terms and why ignoring this step could cost you dearly.

Still wondering if you should listen? What if we told you that this episode not only covers how to protect your current cash flow but offers legally-backed ways to recover late payments? Yep, you read that right! Tracey unveils the power of the Late Payment Act and other tools to put you back in the driver’s seat of your finances.

So, go ahead, click that play button. Whether you’re a seasoned professional or just starting your journey in the construction industry, this episode is going to fill your toolkit with strategies for financial stability and success.

Join us for an episode that promises not just to inform but to transform your approach to business. Tracey even commits to sharing the podcast on her extensive network and contributing to Stu's upcoming eBook on industry top tips. 

👷‍♀️👷‍♂️ Get ready to redefine your cashflow game, only on the Construction Cashflow Podcast with Stu Davidson! 👷‍♀️👷‍♂️

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Hold onto your hard hats, construction aficionados! Welcome back to another riveting episode of The Construction Cashflow Podcast. I'm Stu Davidson, and today we're unlocking the vault of wisdom with a living legend—Dr. Raphael M Düa! This man's list of accolades could fill an entire skyscraper. 🏗️

Episode Highlights:

A Living Legend: Meet Dr. Raphael M Düa, the maestro of project management who has been in the trenches—quite literally—for over six decades. 

From Punch Cards to AI: Journey through time as we explore the seismic shifts in computing and project management—from primitive punch cards to cutting-edge software.

Global Success: Travel with Dr. Düa to New Zealand, where he transformed the construction landscape with innovative IT solutions.

In the Weeds: Deep dive into critical project planning strategies. Ever heard of Bill of Materials or Work Breakdown Structures? You'll want to after this.

Micro Planner Magic: Learn why Dr. Düa swears by Micro Planner for managing the maze of construction complexities.

A Glimpse into the Future: Hold tight as Dr Düa lays out the roadmap for the next iteration of Micro Planner and even teases a future venture in algorithmic magic!

Dream Big: In an unexpected twist, Dr Düa reveals his personal aspiration—a global adventure with his kids.

Stu's Sage Advice:

UK Planning: Get my take on the project planning landscape in the UK.

Consult the Experts: Why ignoring skilled labour could be your downfall when estimating task duration.

Raf's Top Ten: Extracting golden nuggets from Dr Düa's vast repository of knowledge—ranging from technological evolutions to Agile pitfalls.

Closing Notes: We wrap up the session decoding the nuances of cash flow and scheduling—complete with logic diagrams and an insider look at project complexity.

Whether you're a newbie or a seasoned pro, this episode is your golden ticket to upscaling your knowledge and strategies in the construction industry. Tune in and elevate your game to skyscraper heights! 🎧👷‍♂️

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Constriction Cashflow is Sponsored by Know Your Numbers

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Episode Highlights: Rocky Lalvani and Stu Davidson

Unlock the secrets of money mindset and personal growth with Rocky Lalvani and Stu Davidson on the Construction Cashflow Podcast. Here are the key takeaways:

Rocky Lalvani's Insights:

1. Childhood Programming: Early experiences shape our money attitudes; recognize this for financial growth.

2. Awareness Matters: Reflect on your money behaviours and language; awareness is the first step to change.

3. 'Profit First' Mindset: Transform money management with 'Profit First,' bringing discipline and viability.

4. Behavioural Cash Management: Shift focus from emotions to math; use human behaviour to your advantage.

5. Profit as Habit: Prioritise profit; 'Profit First' means sales minus profit equals expenses.

Stu Davidson's Insights:

1. Avoid Low Margins: Prioritise high-margin projects and value; avoid racing to the bottom.

2. Success Beyond Money: Success means time freedom and pursuing passions.

Top Tip for Listeners: Differentiate yourself, build a premium reputation, and choose collaborators carefully.

Personal Growth and Routine: Start your day with reflection, exercise, and personal growth.

Adventure and Challenges: Inner exploration and conquering challenges define adventure. Overcome the fear of taking the first step.

Industry Practices and Productivity: Poor industry practices harm subcontractors. Efficiency and selective clients bring change. Rocky is most productive in the morning.

What's New and Surprising: Rocky works on marketing and hosts Q&A for "Profit Answer Man." Karate is his surprising passion.

Defining Success and Audience: Success is freedom. Implement 'Profit First' in the UK trades.

Advice to Younger Self: Take more chances and overcome limiting beliefs earlier.

Inspiration and Motivation: Inspiration comes from kids growing up and learning from business leaders. Make actionable business knowledge accessible to all.

This episode empowers you to transform your money mindset and embrace personal growth, leading to success on your terms. Join us on this journey of self-discovery and financial empowerment.

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Constriction Cashflow is Sponsored by Know Your Numbers

Click the Following 'Know Your Number's Link' to find out how you can unlock financial transformation in your business.

CLICK HERE TO START YOUR FINANCIAL TRANSFORMATION

In This Episode, I Interview Successful International Property Investor Jelena van Wieren

Episode Highlights: Jelena van Wieren and Stu Davidson

In a riveting episode of the Construction Cashflow Podcast, Jelena van Wieren and Stu Davidson share their profound insights on the construction industry, business, and personal growth. Here are the key takeaways from this inspiring conversation:

Jelena's Insights:

1. Fearless Preparation: Jelena's 20-year real estate journey is a testament to resilience. She stresses the importance of mental and emotional readiness in navigating the unpredictable property development field.

2. Unwavering Drive: Jelena's dedication to completing what she starts is the driving force behind her success. Her determination serves as an inspiration to all aspiring entrepreneurs.

3. The Power of Learning: Continuous self-improvement, a positive mindset, and achieving financial peace of mind are the cornerstones of Jelena's approach. These principles can guide anyone on their path to success.

4. Trust and Transparency: Jelena emphasizes the significance of trust, integrity, and open communication in professional relationships. Building strong partnerships is key to achieving success in the construction industry.

5. The Quest for Personal Growth: Success isn't limited to construction projects; it's about self-realization and personal growth. Jelena advocates for continuous personal development, even when you feel you don't need it.

Stu's Main Points:

1. The Cash Flow Conundrum: Stu Davidson highlights that construction cash flow is central to the podcast's theme. Factors such as health and safety, advertising, branding, and contract terms can significantly impact cash flow.

2. Delays Spell Trouble: Stu emphasizes that project delays often lead to cash flow problems in the construction industry. Being proactive in addressing delays is crucial.

3. Transparency Is Key: Stu advocates for open discussions about financial difficulties. Transparency can pave the way for collaborative solutions, benefiting all stakeholders.

4. The Importance of Clear Agreements: Stu appreciates the value of being clear about time and money from the beginning when entering into agreements. This clarity prevents misunderstandings down the road.

5. A Culture of Support: Cultivating a culture where individual problems are seen as collective issues, especially concerning financial matters, can mitigate and solve various challenges.

Top Tip for Listeners:

Stu Davidson's top tip for listeners is to always have a 'Locum' or substitute ready for key roles. This ensures project continuity, even if team members face personal or medical issues.

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In this episode, Stu interviews the woman heading up the revolution in how we do contracts in construction.

🌟 Introducing the Expert: Join us as we welcome the phenomenal Sarah Fox on The Construction Cashflow Podcast! With over 25 years of industry mastery, Sarah's transforming contracts into pure financial magic.

📘 Book Wisdom: Discover Sarah's treasure trove of books, including "Consultant Appointments in 500 Words," "Subcontracts in 500 Words," "Small Works Contracts in 500 Words," and "Collateral Warranties in 500 Words." These blueprints redefine clarity in contracts.

✨ Contract Clarity: Imagine contracts that are straightforward, intuitive, and hassle-free. Sarah's expertise turns complexities into confident agreements, making contracts a breeze.

💡 Expert Tips: Dive into Sarah's pool of wisdom at 500words.co.uk, and explore her monthly contract tips. Nuggets of advice that can revolutionise your approach to contracts!

🏢 Building Success: Sarah's revolutionising the construction game for developers, contractors, and everyone in between. Unleash the power of cash flow with her insights.

🎧 Tune In: Ready to reshape how you view contracts? Tune in now to The Construction Cashflow Podcast and immerse yourself in the magic of clear contracts and empowered cash flow.

#ConstructionMagic #ContractClarity #CashflowSuccess #IndustryInnovator

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