Contractors can face a range of problems during construction projects, whether due to unforeseen circumstances, changes to the scope of work, or delays caused by other parties. When these issues arise, contractors may be entitled to claim loss and expense.
Loss and expense refers to the additional costs incurred by a contractor as a result of delays or other problems on a construction project. These costs can arise from a variety of sources, including additional labor, materials, or equipment, as well as lost productivity and overheads.
There are several situations in which a contractor may be able to claim loss and expense. These include:
1. Variations to the scope of work: If the client or project manager instructs changes to the original scope of work, the contractor may be entitled to claim additional costs resulting from the variation. However, the contractor must ensure that they receive written instructions for any changes, and that they keep detailed records of their costs.
2. Delay caused by the client or another party: If the contractor is delayed due to the actions of the client or another party (such as a utility company or local authority), they may be able to claim loss and expense. However, it is essential that the contractor follows the correct procedures for notifying the client or project manager of the delay and the resultant costs.
3. Force majeure: Force majeure refers to unforeseen events that are beyond the control of the contractor, such as natural disasters or acts of terrorism. In such situations, the contractor may be entitled to claim additional costs resulting from the force majeure event, but they must be able to demonstrate that the event was genuinely beyond their control.
4. Failure to provide access or information: If the client or project manager fails to provide the contractor with access to the site or essential information required to carry out the works, the contractor may be entitled to claim additional costs resulting from the delay. Again, it is essential that the contractor follows the correct procedures for notifying the client or project manager of the delay and the resultant costs.
In order to claim loss and expense, the contractor must be able to demonstrate that they have suffered a genuine loss as a result of the delay or other problem, and that they have taken steps to mitigate that loss. They must also be able to demonstrate that they have followed the correct procedures for notifying the client or project manager of the problem and the resultant costs.
In summary, contractors can claim loss and expense in a variety of situations, including variations to the scope of work, delay caused by other parties, force majeure, and failure to provide access or information. However, it is essential that contractors follow the correct procedures for notifying the client or project manager of the problem and the resultant costs, and that they are able to demonstrate that they have suffered a genuine loss as a result of the delay or other problem.