Loss and/or expense

Claims by the contractor for loss and/or expense are very common. A common misconception is that an extension of time entitles the contractor to loss and/or expense or that an extension of time automatically leads to money. It is a complex subject bristling with difficult issues concerning global claims, disruption, timing, finance charges, mitigation of loss and head office overheads. There are many construction professionals who specialise in assisting contractors to formulate claims. Basic claims are for onsite establishment costs, but onto that are often added claims for uneconomic working, hired plant, increased costs and interest. The timing of such claims can be crucial; the basic requirement is that the contractor notifies the architect as soon as it becomes clear that a claim could be made.