Simple Maths Not Good Enough When Claiming For Overheads

A recent case in the TCC found that a contractor's percentage assessment of the overheads on a project could not then be applied to their damages claim and recovered as an additional loss. The contractor needed to show constraint – that it had been prevented from earning a contribution to its overheads; otherwise the overheads would have been incurred in any event.

The recent case of Fluor v ZPMC concerned a contractor's entitlement to claim overhead costs following its sub-contractor's breach of contract. The contractor was Fluor, which had been engaged by Greater Gabbard Offshore Winds Limited ("GGOWL") to design and construct the foundations and infrastructure to support 140 wind turbine generators to be installed in the North Sea. Each foundation consisted of a monopile ("MP"), which was to be driven approximately 32m into the seabed. At the top of each MP sat the transition piece ("TP"). The TP provided the connection between the MP and the structure above.