![]() Under a particular term of that contract (eg the JCT Standard Building Contract With Quantities 2011, clause 4. This is not usually the case and each claim must be addressed separately, in accordance with the particular terms of the contract.ĭepending on the particular form of contract, a claim for overheads and loss of profit could arise: On what basis can a claim be brought?Ĭontractors often believe that an entitlement to claim overheads and loss of profit (as well as other heads of loss and expense) automatically follows from an entitlement to an extension of time. Claims for loss and expense are commonly brought under various different headings (see Practice Notes: Loss and expense and Loss and expense claims-practical tips), two of which will usually be a contractor's claim for overheads (also known as prolongation costs) and for loss of profit. Selling, general, and administrative costs (or SG&A costs) are the expenses related to running the back office operations of a construction company. ![]() and the Contractor suffered loss and expense as a direct result. The JCT suite of contracts provides that, where the Contractor incurs or is likely to incur any direct loss and/or expense as a result of the regular progress of the Works being materially affected by any Relevant Matter, the Contractor will be entitled to be reimbursed for that loss and/or expense. Under a construction contract, a contractor will usually be entitled to claim loss and expense where it suffers delay or disruption to the progress of the works, due either to matters within the employer's control or to breaches of contract by the employer. A further category of cost/loss which can be included in a Contractor’s prolongation claim.
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