Loss And Expense Claims In Construction

So, your dream building project has hit a snag. The contractor is behind schedule, and surprise costs are popping up like weeds. You might be feeling frustrated and wondering if you’re stuck footing the bill for these delays and disruptions. But don’t panic. There might be a way to recoup some of those unexpected expenses through a loss and expense claim.

Here at Blackstone Solicitors, we understand the complexities of construction projects. In this article, we’ll break down what loss and expense claims are, when you might be able to make one, and how Blackstone Solicitors can help you navigate the process.

Free Initial Telephone Discussion

For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of loss and expense claims in construction, and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.

What are Loss and Expense Claims?

Imagine you hire a contractor to build your house. They promise a completion date, and you budget accordingly. But what happens if the project gets delayed due to the contractor’s mistakes or unforeseen circumstances outside your control? This can lead to a domino effect of problems:

• Idle Labour Costs: Your workers might be twiddling their thumbs waiting for the next phase to begin, and you’re still on the hook for their wages.
• Increased Material Costs: Material prices can fluctuate, and if the delay pushes your purchase date into a period of higher costs, you might end up paying more.
• Site Security: A stalled project means an empty site that needs security. These additional security costs can quickly add up.
• Financing Costs: If the project takes longer than anticipated, you might have to take out additional loans to cover the extended timeline, incurring interest charges.

Loss and expense claims are a way to recover these additional costs incurred due to delays or disruptions caused by the contractor’s actions (or inaction). These claims essentially argue that the contractor is responsible for the additional expenses you wouldn’t have faced had the project progressed smoothly according to the original plan.

When Can You Make a Loss and Expense Claim?

Not all delays or disruptions entitle you to make a loss and expense claim. Here are some key factors to consider:

• Contractual Terms: The first stop is always your construction contract. Does it include a clause outlining how delays and disruptions will be handled? This clause will typically specify the conditions under which you can claim for loss and expense.
• Cause of the Delay: The reason for the delay or disruption plays a crucial role. If it’s due to something outside anyone’s control, like extreme weather events, you might not have grounds for a claim. However, if the delay is caused by the contractor’s negligence, poor planning, or failure to meet contractual obligations, then you might have a stronger case.
• Evidence of Loss: Simply stating you’ve incurred additional costs isn’t enough. You’ll need concrete evidence to support your claim. This might include invoices for idle labour, receipts for increased material costs, or security service contracts.

Examples of Situations Where You Might Have a Claim:

• The contractor ordered the wrong materials, causing a delay while they wait for replacements.
• The contractor’s poor workmanship necessitates remedial work, pushing back the completion date.
• The contractor fails to obtain the necessary permits on time, causing a halt in construction.

The Importance of Early Action

The sooner you address a potential loss and expense claim, the better. Here’s why:

• Preserving Evidence: The longer you wait, the harder it might be to gather the necessary documentation to support your claim.
• Negotiation Leverage: Addressing the issue early allows for potential negotiation with the contractor before resorting to formal procedures.
• Contractual Time Limits: Some construction contracts have time limits for submitting claims. Missing these deadlines could weaken your case.

How Blackstone Solicitors Can Help

If you’re facing delays and unexpected costs on your construction project, Blackstone Solicitors can help you determine if you have a valid loss and expense claim. Here’s what we can offer:

• Contract Review: We’ll meticulously review your construction contract to identify the relevant clauses regarding delays, disruptions, and loss and expense claims.
• Loss Assessment: We can work with you to assess the additional costs you’ve incurred due to the delay or disruption. This will involve gathering and analysing relevant documentation.
• Negotiation and Mediation: In many cases, a negotiated settlement with the contractor can be the most efficient solution. We can represent you in these negotiations or during mediation to ensure your interests are protected.
• Litigation Expertise: If amicable resolution proves impossible, we have the experience and skill to represent you effectively in court.

How we can help

We have a proven track record of helping clients deal with loss and expense claims in construction. We will guide you diligently and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting. You can read more about the range of construction law services we offer by clicking here: https://blackstonesolicitorsltd.co.uk/construction-solicitors/

How to Contact Our Construction Solicitors

It is important for you to be well informed about the issues and possible implications of a loss and expenses claim. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.

To speak to our Corporate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in Blog, News Tagged as

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