Loss and expense claims arise in almost every construction project that is subject to delays and or disruption. Such claims are caused by delays and/or disruption, inflation, acceleration, and variations in the work or sequence of the work. All to often, employers assume that the tender figure is not subject to any adjustment without full consideration of the provisions of the contract.
Each claim is unique and while specific issues can be grouped together the actual entitlement can be very different under different forms of contracts. It is the contract that gives entitlement to the claim; hence it is important to find the relevant provision upon which to found the claim. Without this, the claim, however well presented, will fail.
Contracts set out what it is that can be claimed and what cannot be claimed. This is based upon the apportionment of risk.