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 Claims on Prolongation Costs in NutshellThe use of preliminaries on pro rata basis would not truly result the actual loss in prolongation. The level of compensation is what is reasonable in the circumstances. Each case shall be evaluated on its own merit. Application of Causation, Remoteness and Foreseeability Tests in Determining Eligibility of ClaimsIt is a cumbersome exercise to be dealt with far remote facts, both for justification and evaluation. Amendment, Deletion or Silence – Which One is Better?It is always better not to touch the General conditions but to have proper amended clauses as long as the primary intension of the standard clauses are secured in the given the General section. Claims for Loss of Profit on Omitted Works in NutshellIf, however the instruction omitting works is a valid variation order, then whether a contractor can claim loss of profit on such omitted works depends upon the wording of the conditions of contract. Termination Claims in NutshellThere are two general types of termination typically addressed in construction contracts: termination for convenience and termination for cause (sometimes referred to as termination for default). Recovery of Unabsorbed Head Office Overheads in a Contract ProlongationIt is impossible to accurately measure any under absorption of head office overheads whenever the damages become too remote and speculative. However, the contractor’s entitlement as to claim for additional overhead costs has been confirmed in case law. Dealing with Suspension Claims in NutshellA party, who wishes to exercise the right to suspend performance, runs the risk that their suspension will be regarded a failure to carry out the works regularly and diligently and may be treated as a repudiation of the contract, if in the particular circumstances no such right actually exists. Dealing with Quantum Meruit Claims in NutshellIn establishing a quantum meruit claim, the claimant must prove the total costs incurred and payments made by it in carrying out the works. The claimant must also establish that the amounts in question were fair and reasonable in the circumstances. Dealing with Global Claims in NutshellA global claim, sometimes referred to as rolled up claims, is one where the claimant does not allege that event X lead to result Y but rather that there were events A-Y and Z occurred. It is one where a total delay, disruption or cost is said to have been caused by multiple causes for which the employer is responsible, but where the extent of the delay, disruption or cost attributable to each of those causes is not distinctly isolated. Dealing with Ex-Gratia Claims in NutshellAn ex-gratia payment to a contractor is one not legally due under the contract or otherwise and usually represents compensation paid to the contractor on grounds of hardship, sympathy or fair-play.
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