ABSTRACT

The Contractor may be in default on the Main Contract, with no entitlement. A person may well be genuinely entitled to a full recovery under the subcontract. But, beware of bespoke conditions and amendments to standard forms limiting one's entitlements to whatever the Contractor can recover under the Main Contract. Under most standard forms, a person would have entitlements due to the 'act, omission or default' of the Contractor. One should, again, beware contracts that omit such provisions. Unless there are onerous provisions to the contrary, the correct approach is to value site establishment, staff and plant on the basis of actual costs properly incurred as a direct result of the delay. The assessment should be made at the point where the delay took place. It is more accurate than valuing the 'tailend' overrun. One very good reason for this is that the tail-end resources have often been reduced, but this would always have been the case.