Profit on Cost meaning

In this issue Key PI and Clinical Negligence developments Claims involving a fatality Limitation Damages Case management Further PI and Clinical Negligence updates LexisNexis® Quantum Portal LexTalk® PI & Clinical Negligence: a Lexis®Nexis community Daily and weekly news alerts LexisNexis® Webinars Useful information Key PI and Clinical Negligence developments ‘Lost years’ damages available to child claimants: Supreme Court overrules Croke (CCC v Sheffield Teaching Hospitals NHS Foundation Trust) The Supreme Court in CCC (by her mother and litigation friend MMM) v Sheffield Teaching Hospitals NHS Foundation Trust [2026] UKSC 5 has upheld the appeal, confirming that children whose life expectancy has been curtailed by clinical negligence may recover ‘lost years’ damages. Disapproving the Court of Appeal’s stance in Croke v Wiseman [1982] 1 WLR 71, the court found no principled reason to bar very young claimants from seeking pecuniary losses attributable to the years of life taken away. The ruling...

In this issue: Transferring property Property management Environment, energy and buildings Property taxes Key developments and horizon scanning Property in Wales Additional property updates this week Daily and weekly news alerts Trackers Transferring property Contract termination—conditions precedent In Henley Developments 211 Ltd v Weston Homes PLC [2025] EWHC 3200 (Ch), the High Court rejected the appeal, finding that the “no one may profit from their own breach” principle is an interpretative aid that can be overridden by unequivocal contractual language. It further held that where an agreement sets out a complete regime for termination for breach and, separately, includes mutual (“two-way”) termination rights, those mutual rights can still be exercised even if the event triggering them was brought about by the terminating party’s own breach. The dispute arose from a conditional sale of property priced at £14.5m with a £870,000 deposit. The purchaser had promised to use “all reasonable and commercially prudent endeavours” to...

People’s Partnership On 19 February 2024, People’s Partnership—one of the UK’s largest workplace pension providers—stated that a 30-year-old earning £30,000 could end up with an almost £33,000 shortfall in their retirement funds by the age of 67 if they transferred a £10,000 pension pot from a scheme charging 0.4% to one levying 0.75%. For anyone moving a £50,000 pot, the potential hit to retirement savings could total as much as £59,523, the profit-for-people body noted. If the same individual’s pay rose to £45,000 and they chose to transfer a £50,000 pension, the predicted gap at retirement could rise to £72,689. People’s Partnership surveyed 1,000 people between November and December 2023 who had brought together their workplace pensions within the past two years without the help of a financial adviser. It said these estimates were based on a hypothetical case of a 30-year-old who starts taking pension withdrawals in 2061...

The most common reasons for entering into derivatives are for the purposes of: Speculation — when a party seeks exposure to a given variable, for example taking a view on a commodity’s future price on the assumption it will rise or fall over a chosen period Hedging — aiming to offset exposure to the risk of an unfavourable shift in a variable, or to stabilise expected outcomes over time Arbitrage — seeking to take advantage of price discrepancies (between markets, or within the same market over time) to earn profit or cut costs, or where one participant can reach a price or market unavailable to another, including where prices differ over time Exposure to asset classes — obtaining access to a target market (eg commodities, shares, property) without incurring the expense, complexity and formalities associated with those markets, avoiding the same costs and complications Derivatives are commonly used alongside lending arrangements for hedging purposes in practice. In this context, the primary...

Energy projects involve a blend of perceived and actual risks that affect cash flow, availability, performance and profit, and they shape investment choices. These risks arise from environmental, technological, financial, political and commercial factors, depending on the nature of the energy project. To secure a viable, bankable energy project, it is vital to identify, confront and mitigate such risks as far as possible. This Practice Note examines the perceived and real risks confronting energy projects, the allocation of design responsibility under the FIDIC Silver Book 1999 and 2017 editions (an engineering, procurement and construction (EPC) contract widely used on energy projects), and practical approaches to reducing risk on an energy project. For a fuller introduction to the Silver Book, see Practice Notes: FIDIC contracts—introduction to the Silver Book 1999 and FIDIC contracts—introduction to the Silver Book 2017. What are the perceived and real risks for energy projects? Projects tend to proceed more smoothly and more cost effectively when risk is apportioned and addressed from the outset. The table...

What is a prime cost contract? Put simply, where a deal is let on a ‘prime cost’ basis, the contractor recovers the expenditure it incurs in delivering the works — such as labour and materials (including those supplied by sub‑contractors) — plus a management fee on top to cover overheads and profit. This differs from the usual lump sum arrangement, under which the employer and contractor fix the total contract price payable to the contractor at the outset (subject to any clauses permitting adjustments as the works proceed) and the contractor bears the risk of any rise in the cost of the works. Management contracting is a common setting for prime costs in practice. The management contractor is remunerated with a fee for its services plus the prime costs it incurs in performing its functions. Those costs include amounts paid to the works contractors for the works they carry out. See Practice Note: Management contracting. A prime cost arrangement is generally viewed as equivalent to a ‘cost plus’...

Add the following new definitions in Article 2.1: Accounts • means, for each financial year of the Company, the audited [ consolidated ] balance sheet together with the profit and loss accounts of the Company and its subsidiary undertakings, prepared on the historical cost basis and in line with generally accepted accounting principles and all applicable accounting standards, Statements of Standard Accounting Practice, Financial Reporting Standards and Statements of Recommended Practice; After Tax Profit • means the amount of the profit [ (including any unrealised profits) ] of the Group for the relevant financial year (as shown by the Accounts): (a) before any provision or reserve has been made for or in respect of: i the payment of any dividend or other distribution on or in respect of any Shares or the transfer of any sum to reserves; ii the redemption of the [ Preferred Shares OR Loan Notes ]; and iii the amortisation or write-off of goodwill arising on consolidation; and (b) after provision has...