10. Loss and Expense/Additional Cost

  1. Roger Knowles FRICS, FCIArb, FQSi, Barrister

Published Online: 14 FEB 2012

DOI: 10.1002/9781118257050.ch10

200 Contractual Problems and their Solutions, Third Edition

200 Contractual Problems and their Solutions, Third Edition

How to Cite

Knowles, R. (2012) Loss and Expense/Additional Cost, in 200 Contractual Problems and their Solutions, Third Edition, Wiley-Blackwell, Oxford, UK. doi: 10.1002/9781118257050.ch10

Publication History

  1. Published Online: 14 FEB 2012
  2. Published Print: 15 FEB 2012

ISBN Information

Print ISBN: 9780470658314

Online ISBN: 9781118257050

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Keywords:

  • loss and expense/additional cost;
  • contractors, and extension of time;
  • sub-/contractor, not entitled to recovery of losses;
  • disputes, entailing written notices;
  • GC/Works/1, 46, disruption costs not paid up;
  • London Borough of Merton v. Stanley… (1985);
  • recovery of costs, in preparing claims;
  • parties into a contract, lying on bad ground

Summary

This chapter contains sections titled:

  • Where a contractor/subcontractor is granted an extension of time, is there an automatic right to the recovery of loss and expense?

  • Where a contractor/subcontractor successfully levies a claim against an employer for late issue of drawings, can the sum paid out be recovered by the employer from a defaulting architect/engineer?

  • Will a contractor or subcontractor substantially prejudice its case for additional payment if it fails to keep adequate accurate records?

  • When a contractor/subcontractor, with regard to a claim for loss and expense or additional cost, is shown to have failed to serve a proper claims notice or has not submitted details of the claim as required by the contract, can the architect/engineer legitimately reject the claim?

  • With a programme shorter than the contract period, can the contractor/subcontractor claim additional payment if, because of the timing of the issue of the architect/engineer's drawings, he is prevented from completing in accordance with the shortened programme?

  • Where a contractor submits a programme which is accepted or approved, showing completion on the completion date written into the contract, must drawings be issued in good time to enable the contractor to carry out the work at the time and in the sequence indicated on the programme?

  • Is a contractor/subcontractor entitled to recover the cost of preparing a claim?

  • Will the courts enforce claims for head office overheads based upon the Hudson or Emden formulae, or must the contractor be able to show an increase in expenditure on head office overheads resulting from the overrun?

  • Where a delay to completion for late issue of information has been recognised, should the loss and expense or additional cost claims in respect of extended preliminaries be evaluated, using the rates and prices in the bills of quantities?

  • Once it is established that additional payment is due for prolongation resulting from employer delays, should the evaluation relate to the period when the effect of the delay occurs or by reference to the overrun period at the end of the contract? Will the prolongation costs incurred for the whole of the site be recoverable, or only those associated with those parts of the works which are delayed?

  • When ascertaining contractors' claims on behalf of employers, how should consultants deal with finance charges which form part of the calculation of the claim?

  • Is a contractor/subcontractor entitled to be paid loss of profit as part of his monetary claim?

  • Is a contractor/subcontractor entitled to be paid acceleration costs as part of his monetary claim? What is meant by constructive acceleration?

  • Where a written claims notice is required to be submitted within a reasonable time, or information is required to be issued by the architect or engineer within a reasonable time, how much time must elapse before the claim can be rejected as being too late, or the contractor to issue a claim for late issue of information?

  • What methods of evaluating disruption have been accepted by the courts and what is meant by the ‘Measured Mile’?

  • Can a claims consultant be liable for incorrect advice?

  • If a delay in the early part of a contract caused by the architect/engineer pushes work carried out later in the contract into a bad weather period, causing further delay, can the contractor/subcontractor claim loss and expense resulting from the bad weather delay?

  • Who is responsible for the additional costs and delay resulting from unforeseen bad ground conditions; the employer, or contractor/subcontractor?

  • Where one party to a contract is in breach and the injured party incurs loss, what obligations are there on the injured party to mitigate the loss?

  • What is meant in legal terms by the words ‘consequential loss’?

  • Is it possible to include in a contract a daily or weekly rate which will be paid to the contractor in respect of loss and expense or additional cost resulting from delays caused by the employer?