Loss and expense


Published by a UUÂãÁÄÖ±²¥ Construction expert
Practice notes
In-house

Loss and expense


Published by a UUÂãÁÄÖ±²¥ Construction expert

Practice notes
In-house
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Claims by contractors for Loss and expense arising from a disturbance to progress of the works are one of the most debated and contentious areas of construction law, often leading to Disputes between the employer and the contractor. This Practice Note explains the basics of loss and expense claims and looks at how the subject is dealt with in the JCT, NEC and FIDIC contracts. For a comparison of the specific provisions in each of these contracts, see Practice Note: Comparison between JCT, NEC and FIDIC time and money events.

For a list of the key issues to consider in relation to a claim by a contractor for reimbursement of loss and expense and/or an extension of time, see also Practice Note: Time and money claims.

What is loss and expense?

Loss and expense is the term often used (most notably, in the JCT contracts) to describe the additional costs incurred by a contractor as a result of disturbance to the regular progress of the works caused by matters either within the employer's control or by breaches of contract by

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Loss and expense definition
What does Loss and expense mean?

Additional costs incurred by a contractor due to disturbance to the regular progress of the works caused by matters within the employer's control or by breaches of contract by the employer. Loss and expense costs may include increased preliminaries, overheads, loss of profit, loss of productivity and interest/finance charges.

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