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Lossandexpense
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Constructioncontractswillgenerallyprovideforthecontractortoclaimdirectlossand/or
Relatedarticles
expenseasaresultoftheprogressoftheworksbeingmateriallyaffectedbyrelevantmattersfor
whichtheclientisresponsible,suchas: Causesofconstructiondisputes.
Concurrentdelay.
Failuretogivethecontractorpossessionofthesite.
Failuretogivethecontractoraccesstoandfromthesite. Consequentialloss.
Delaysinreceivinginstructions.
Openingupworksortestingworksthatthenprovetohavebeencarriedoutinaccordance Contractclaims.
withthecontract. Defects.
Discrepanciesinthecontractdocuments.
Disruptioncausedbyworksbeingcarriedoutbytheclient. Extensionoftime.
Failurebytheclienttosupplygoodsormaterials.
Forcemajeure.
Instructionsrelatingtovariationsandexpenditureofprovisionalsums.
Inaccurateforecastingofworksdescribedbyapproximatequantities. Liquidateddamages.
IssuesrelatingtoCDM.

Claimsmaycomprisecostsresultingfromdisruptiontotheworksorfromdelaystotheworks
(prolongation).
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Thecontractormustgivewrittennoticeofaclaimassoonasitbecomesreasonablyapparent
IdeascompetitionMakeBuildingsBetter
thattheregularprogressoftheworksisbeingmateriallyaffected.Thisneednotnecessarily
resultinadelaytothecompletiondate,andsoclaimsforlossandexpenseandclaimsfor
extensionsoftimedonotnecessarilyalwaysruntogether.

Claimsarerestrictedto'direct'lossandexpenseandso'consequentiallosses'(suchaslost
production)aregenerallyexcluded.Directlossesarethosethat'flownaturally'fromthebreachof
contract.Thereisdisparitybetweencontracttypesaboutwhetheritemssuchasheadoffice
overheadscanbeincludedinclaimsforlossandexpense,andsomecourtrulingshaveallowed
suchclaims.Iftherearespecificconsequentiallosseswhichthepartiestothecontractwishto
exclude,itmaybeprudentthereforetostatetheseexplicitlywithinthecontract.
BSRIAandDesigningBuildingsWikiare
askingwhatyourideasareforimprovingthe
NBTheNewEngineeringContract(NEC3)containsprovisionforthecontractortoclaimpayment
performanceofbuildingsinuse.Win500of
for'compensationevents'ratherthanlossandexpense.
BSRIAgoodies.

Findoutmore
HexHouseproject
RelatedarticlesonDesigningBuildingsWiki
Causesofconstructiondisputes.
Concurrentdelay.
Consequentialloss.
Contractclaims.
Defects.
Extensionoftime.
Forcemajeure.
Liquidateddamages.
Namedspecialistwork.
Professionalindemnityinsurance.
Profitandoverheads. ArchitectsforSocietyrevealprototypedesign
Prolongation. foremergencyreliefandrefugeecamps.
Provisionalsums.
Relevantevent.

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4/21/2016 LossandexpenseDesigningBuildingsWiki
Thedistinctionbetweenliquidateddamagesclausesandpenaltyclauses.
Variations. Unusualbuildingoftheweek

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