Level 3 - Loss & Expense

Question 1

What is the L&E process?

Answer 1

1)	Contractor makes a Loss and Expense Claim providing additional substantiation with their claim including: 
•	Contractor’s programme, 
•	Contractor’s site progress report,  
•	Invoices, 
•	Timesheets 
•	and payslips.  

2) QS will check relevant matters to check its validity i.e.
• Employer change
• Postponement of Work
• Instructions on Provisional Sums

3) Assessment of L&E claim will be done on heads of claim
- Prolongation Costs: Time Related Prelims
- Disruption/Abortive Costs: Non-productive/ inefficient/uneconomical use of plant and labour time.
- Loss of Profit: i.e. lost tendering opportunities
- Wasted management time Significant disruption to business
- Finance Charges: If the contractor had to borrow money to fund their additional spend due to late payment then they may be able to claim for this money.