ABSTRACT
This chapter looks at how construction contracts deal with changes in the way in which the contract is carried out in practice and how that affects the liabilities of the parties to the contract with regard to additional time and cost. 'Loss and expense' is a term frequently misunderstood in the context of construction law. Loss of profit claims are under the same principles as head office overheads. A claim for loss and expense arises out of the express terms of the contract allowing the contractor to claim in certain circumstances. On JCT contracts, the difference is immaterial since the entitlement is to loss and/or expense. A quantum meruit entitlement might be created by a letter of intent situation. The Eichleay formula approaches the problem from a different direction, represented by a shortfall in contribution. Any increase in value affecting premiums would normally be deemed to be covered by the overhead and profit element in the valuation of variations.
