Assessing Damages In Construction Contracts Part II

INTRODUCTION

This is the second part of our series on the subject of damages in construction and infrastructure disputes. The first part can be accessed, here.

In the first part, we noted that courts have upheld the use of the Hudson Formula, Emden Formula and Eichleay Formula to assess the merits of delay claims relating to Site Overheads, Head Office Overheads and loss of profits/ profitability. Since the publication of our first part, there have been significant developments in the nature of evidence which needs to be provided. More particularly, the Supreme Court of India has dealt with this issue recently in Batliboi v. HPCL [2023 INSC 850] and Unibros v. AIR [2023 INSC 931].