Overview

Delay & disruption claims may be required to establish liability, or lack of, for the financial or delaying consequences of events occurring during the project.  

Entitlement to delay & disruption claims

Entitlement to reimbursement for delay and disruption can arise as a provision of the contract terms for example generally as Loss & Expense under JCT Contracts, or Compensation Events under NEC forms of contract.  Entitlement can also arise from a breach of the express terms, or a breach of any terms implied by statutory, or common, law.  It is critical the appropriate mechanism for entitlement is established so that the route to quantum can be identified. 

If the claim pursuant to the express terms then there will be specific contractual procedures to consider and follow in arriving at quantum, which generally include notice provisions and requirements in respect of timing for notices and providing assessments of the loss. 

If the contract does not provide for reimbursement of losses for delay & disruption through the express terms then consideration will need to be given to whether there is a claim for breach of the express terms or the implied terms.  The conduct that caused the loss will need to be identified as a breach of the contract or terms implied by law.

Quantifying delay & disruption claims

Extension of time does not automatically provide for reimbursement of financial losses unless provided by the contract but even then, quantum for financial loss by reference to the critical delays only may restrict the claim by excluding losses arising from non-critical delay, and disruption may also occur during non-critical delay.

Our approach to quantifying delay & disruption claim is based on a logical application of the contract, or rights arising by way of right from breach of contract, to all the available evidence.  In this way our main focus is to provide the most robust claim available by: 

(a) identifying the contactual basis for the claim, and 

(b) working with you in the management of the procurement of evidence required for the claim, and 

(c ) providing necessary factual demonstrations required to prove your case and, 

(d) quantifying a claim in accordance with the factual and contractual requirements in respect of causation.