Must the Contractor Notify the Employer/SO of its Loss and/or Expense Claim

Having discussed what is Loss and/or Expense in the last article, we now will look at the requirement of notice in relation to claiming for Loss and/or Expense.

The standard forms of contract in Malaysia require that written notifications are provided for loss and/or expense claims. However due to poor understanding of the requirement of notification, bad notice or the lack of notice has led to disputes and disagreement amongst the various parties (i.e. Employer, SO & Contractor).

A written notice of claim or application by the Contractor is usually the precondition to evaluation, ascertainment and certification by the Architect/Engineer/SO for Loss and/or Expense payment. Unlike extension of time, lack of notice on loss and/or expense claim is often fatal.

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