chapter  27
6 Pages

Contract requirements

The two most commonly used forms of contract in the UK stipulate the following requirements and conditions regarding monetary compensation for time-related delays and changes.

Section 4 of the JCT 2005 Standard Building Contract with Quantities, deals with ‘Payment’, and clauses 4.23 to 4.26 under the sub-heading ‘Loss and Expense’ state:

Matters materially affecting regular progress 4.23 If in the execution of this Contract the Contractor incurs or is likely to incur direct loss and/or expense for which he would not be reimbursed by a payment under any other provision in these Conditions due to a deferment of giving possession of the site or relevant part of it under clause 2.5 or because the regular progress of the Works or of any part of them has been or is likely to be materially affected by any part of the Relevant Matters, the Contractor may make written application to the Architect/Contract Administrator. If the Contractor makes such application, save where these Conditions provide that there shall be no addition to the Contract Sum or otherwise exclude the operation of this clause, then, if and as soon as the Architect/Contract Administrator is of the opinion that the regular progress has been or is likely to be materially affected as stated in the application or that direct loss and/or expense has been or is likely to be incurred due to such deferment, the Architect/Contract Administrator shall from time to time thereafter ascertain, or instruct the Quantity Surveyor to ascertain, the amount of the loss and/or expense which has been or is being incurred; provided always that the Contractor shall:

.1 make his application as soon as it has become, or should reasonably have become, apparent to him that the regular progress has been or is likely to be affected;

.2 in support of his application submit to the Architect/Contract Administrator upon request such information as should reasonably enable the Architect/Contract Administrator to form an opinion; and

.3 upon request submit to the Architect/Contract Administrator or to the Quantity Surveyor such details of the loss and/or expense as are reasonably necessary for such ascertainment.