Building Contract Claims, 6th Edition

List of Cases xvii

List of Figures xxxi

List of Tables xxxiii

Preface to the Fifth Edition xxxvii

Preface to the Sixth Edition xli

List of Abbreviations xliii

Part I 1

1 Introduction 3

1.1 General Introduction to ‘Claims’ 3

1.2 Standard Forms of Contract Considered in This Book 7

1.3 Types of Claims by the Contractor 11

1.4 Types of Claims by the Employer 13

1.5 Structure of This Book 15

2 General Principles 17

2.1 Entitlement 17

2.2 The Burden of Proof 21

2.3 Causation 22

2.4 Categories of Claim 24

2.5 The ‘Knock-on’ Effect 29

2.6 Damages 32

2.7 Mitigation 33

2.8 Betterment 36

2.9 Notices 37

3 Time 47

3.1 General Points 47

3.2 Extension of Time Clauses in Building Contracts 60

3.3 Critical Path Analysis and Planning Software 63

3.4 The Society of Construction Law Delay and Disruption Protocol 66

3.5 Methods of Delay Analysis 67

3.6 Float 95

3.7 Concurrency 99

3.8 Acceleration 100

3.9 Sectional Completion 108

3.10 ‘Milestone’ or Key Dates 112

3.11 Foreshortened Programme 113

4 Financial Compensation: Recovery of Direct Loss and/or Expense or Additional Costs 119

4.1 Definition 119

4.2 Direct V Indirect 122

4.3 Exclusion of Indirect or Consequential Loss 123

4.4 The More Common Heads of Loss 126

4.5 Quantum Meruit Claims 148

4.6 Exclusive Remedy Clauses 150

4.7 Claims at Termination of Contractor’s Employment 151

5 Claims for Variations Under the Contract, Acceleration, Bonus Clauses and Contractor’s Share 161

5.1 Definitions and Scope 161

5.2 JCT 2016 Contracts – Definitions of Variations 172

5.3 NEC4 Contracts – Definition of ‘Compensation events’ (Including Variations) 193

5.4 Valuation Under JCT 2016 Contracts 203

5.5 Valuation Under NEC4 Contracts (Including ‘Contractor’s Share’) 221

5.6 Acceleration Provisions 233

5.7 Bonus Clauses 235

6 Basis for Common Law Claims 239

6.1 General 239

6.2 Implied Terms 243

6.3 Variation of the Contract Itself (Not a Variation Under the Terms of the Contract) 249

6.4 Omission of Work to Give it to Others 250

6.5 Extra Work 253

6.6 Possession of the Site 255

6.7 Incorrect Information 258

7 Global Claims 263

7.1 General Points 263

7.2 Basic Principles of Global Claims 263

7.3 The Current Position 265

7.4 Summary 267

8 Employer Claims Against the Contractor 269

8.1 General 269

8.2 Delay Damages (Liquidated Damages) for Late Completion 270

8.3 Procedures for Deducting Liquidated Damages for Late Completion 284

8.4 Defences to Liquidated Damages for Late Completion 288

8.5 Defects: Reduction/Abatement of the Contract Price 295

8.6 Employer Claims for Other Breaches of Contract 300

9 Duties of the Employer’s Representative 303

9.1 Employer’s Representatives (Architects’, Contract Administrator’s and Project Manager’s) Powers and Liability to the Contractor 303

9.2 Quantity Surveyor’s Role 319

10 Preparation and Substantiation of Claims 333

10.1 Preparing a Claim 333

10.2 Types of Evidence Required to Support a Claim 340

Part II 355

11 Extensions of Time Under JCT 2016 Contracts 357

11.1 Introduction 357

11.2 The Contractor’s Notifications 359

11.3 Fixing a New Completion Date 363

11.4 Relevant Events – Grounds for Extensions of Time 375

12 Loss and/or Expense under JCT 2016 Contracts 397

12.1 Introduction 397

12.2 The Contractor’s Application and Assessment 402

12.3 Ascertainment by the Employer or His Representative 419

12.4 The ‘Relevant Matters’ 427

13 Claims Under NEC 4 437

13.1 Introduction 437

13.2 Assessing Changes to the Prices 438

13.3 Assessing a Delay to the Completion Date and/or a Key Date 438

13.4 The Project Manager’s Assessments 441

13.5 The Compensation Events 442

Part III 469

14 Sub-Contract Claims 471

14.1 Introduction 471

14.2 Variations Under the Sub-Contracts 476

14.3 Extensions of Time Under Sub-Contracts 486

14.4 Loss and Expense Under the Sub-Contracts 501

14.5 Main Contractor Claims Against Sub-Contractors 510

15 Professional Fee Claims 517

15.1 Introduction 517

15.2 Claims Made by Consultants 527

15.3 Client Claims Against Consultants 538

Appendix A Example of Contractor’s Claim for Reimbursement of Direct Loss and/or Expense Under the JCT 2016 Contracts 543

A.1 Introduction 543

A.2 Example Particulars 544

A.3 Explanation of Costs or Expenditure 546

A.4 Loss and Expense for Employer Delay 1 – Details 549

A.5 Loss and Expense for Employer Delay 1 – Entitlement and Quantum 550

A.6 Loss and Expense for Employer Delay 2 – Details 550

A.7 Loss and Expense for Employer Delay 2 – Entitlement and Quantum 550

A.8 Observations for Loss and Expense for Employer Delay Claims 1 and 2 555

Appendix B Example of Compensation Event Claim Under NEC4 561

B.1 Introduction 561

B.1.1 Details of the Compensation Event 561

B.1.2 Observations on the Compensation Event Assessment 564

Index 581