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ARTICLE · 20 SEPTEMBER 2007

Loss And Expense

Direct loss and/or expense is found in the JCT Contracts to describe the reimbursement to which the Contractor is entitled under the provisions of the Contract in respect of disruption and prolongation.

United KingdomCorporate/Commercial Law
Stephen Homer
Stephen Homer

Readers will be familiar with the phrase "loss and expense". However, I suspect it means different things to different people. Most legal text books do not contain a succinct definition of loss and expense. The phrase direct loss and/or expense is found in the JCT Contracts to describe the reimbursement to which the Contractor is entitled under the provisions of the Contract in respect of disruption and prolongation. Loss and expense normally arises by virtue of a specific clause in a building contract or as a result of a breach of contract by the Client.

Under the JCT Contracts loss and/or expense can be claimed because of the deferment of giving possession of the site by the Client or because the regular progress of the works has been or is likely to be materially affected by one of the listed Relevant Matters. A classic Relevant Matter would be a late instruction or late provision of information by a Contract Administrator.

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