ABSTRACT

Claims can be divided into four categories: claims for the payment of damages due to the employer's breach of contract, claims for additional payments under specific provisions of the contract, claims arising out of variations and claims for disruption and delay. Perhaps the most difficult problem which the contractor faces in the negotiation of claims is the time which it takes. The rights of the contractor to claim damages, and in particular to claim for loss of profit, may be affected by the express wording of the contract. One of the many difficulties which are to be found in the calculation of claims for prolongation and disruption is that of head office overheads and loss of profit. The basis upon which such claims should be made is by way of a comparison between the costs which the contractor reasonably expected to incur and the increases which he did in fact incur arising out of the delay.