Our headline this month might be an old phrase and/or one that isn’t familiar to you,
but it’s nonetheless true. Barry explains why.

IF you’re said to be penny wise and pound foolish, you’re extremely careful with smaller, inconsequential amounts of money, but you lose any gains you might receive from losses owing to larger issues that go uncorrected.

And regrettably, being penny wise, pound foolish is an attitude that prevails in some flooring contractor businesses.

Please don’t let it be yours.

Let me explain a bit more
I’ve worked exclusively with specialist contractors in the UK construction industry, providing expertise in dispute resolution, contractual and commercial problem solving, and contract evaluation and drafting, for more than 32 years. And before that I was a specialist contractor myself for 20 years. Yes, I’m that old!

Along with my colleagues we’ve helped specialist contractors of all sizes and specialisations to get paid and protect themselves against contractual and commercial issues and resolved disputes from a few thousand to several million pounds.

We don’t need to spend our time and your money getting to know the industry and how it works, because we know how to get to the nub of your problem and how to fix it quickly and economically.
So, when you have the opportunity to tap into all that expertise for less than £5 a day would you say you can’t afford it because it’s a cost you don’t want to pay?

Here’s the pound-foolish part
I regularly see specialist contractors being pound foolish by:

• agreeing payment terms they don’t understand and then struggling to get paid
• carrying on working when they are not being paid despite having the right to suspend
• carrying out variations without instructions and getting knocked back by the contractor’s QS
• spending their own money on accelerating their works when they had no obligation to do so
• accepting a raw deal on their final account just to get it settled
• accepting the contractor’s spurious contra charges and set off
• waiting years for their retention when it should be in their bank.

And (apart from all the shenanigans in Westminster) here’s just about the craziest thing I’ve heard in years from one specialist contractor our team has spoken to recently. And I quote:
‘The main contractors tie us up in such tight knots that we just take a gamble on whether we get paid or not’

Are you kidding me? No, sadly it’s true, that’s what he said!

I reckon that fixing just one of the problems above would pay that £5 a day many times over, never mind about removing the risk of not getting paid.

And did you know that £5 a day even includes a free contract checking service that will quickly tell you if the contract is onerous?

Don’t be pound foolish
Irrespective of whether you’re an individual working in a business, a one-man operation, or a director of a multi-million-pound organisation we’re here to help. Our various options from tribe to silver, gold and platinum buddy memberships provide a range of alternative methods of accessing our support.

Let us help you to avoid:

• onerous amendments to Standard Form contracts
• contractor’s onerous bespoke forms of contract
• excessive liquidated damages or unlimited damages
• extended payment periods
• non-payment for unfixed materials
• conditions precedent for payment
• excessive discount
• extended retention periods
• onerous set-off arrangements
• onerous performance bonds and warranties
• enforced acceleration without payment
• lack of firm programme dates and periods
• suicide terms such as ‘to suit main contractor’s progress’
• excessive design or co-ordination responsibilities
• unworkable protection obligations
• responsibility for checking previous works of other trades

And if things are going wrong we and our service delivery partners have the unique strength, depth of construction knowledge and expertise to help you resolve it by negotiation, forceful advocacy of your case and if necessary adjudication or litigation.

For all your dispute resolution, contractual advice, adjudication, vetting contracts warranties and bonds, commercial advice, resolution of outstanding accounts, contract drafting, expert witness, quantity surveying, training for management and staff, we have it all.

So, don’t be penny wise, pound foolish, come see how our cost-effective services can make a massive difference in your business. Contact us using the below details.

Finally, my I take this opportunity to wish you a very happy and a prosperous 2023.
01773 712116
info@streetwisesubbie.com
www.streetwisesubbie.com
Barry Ashmore is managing director
and co-founder of StreetwiseSubbie.com