Construction Contracts: Questions and Answers – Episode 20: Loss and/or Expense Claims

This episode focuses on the intricacies of loss and/or expense claims in construction contracts, examining how contractors may seek compensation for financial losses incurred due to delays or disruptions beyond their control. We discuss the grounds for submitting such claims, including variations, employer-imposed delays, and unforeseen site conditions, as well as the procedural requirements contractors must follow when making claims. Key topics include determining entitlement to additional costs, assessing causation, and the importance of proper record-keeping to support claims. We also explore common challenges in evaluating these claims, including disagreements over the valuation of expenses and the role of contract administrators in adjudicating these disputes. This episode provides essential guidance on managing loss and expense claims effectively, ensuring fair compensation for affected parties.