There are many misconceptions about what is Loss and / or Expense under construction contracts. These misconceptions arise mainly due to lack of understanding or misunderstanding that the various parties to the construction contracts, namely the Contractor, the Employer / Client and the Contract Administrator / Supervision Officer (SO) have on this topic, which has led to many problems and disputes in the construction industry.
Many standard forms of contract allow for Loss and /or Expense to be claimed by the Contractor, with the SO ascertaining / assessing the Contractor’s application for Loss and /or Expense payment and finally payment by the Employer. Although this is the case, due to this apparent lack of understanding or misunderstanding, Loss and /or Expense applications lack either proper documentation or the application being rejected.
