Jurisdiction(s):
United Kingdom

Key definition

Loss and expense definition

What does Loss and expense mean? In construction practice, loss and expense means the additional money a contractor seeks when employer‑risk events or employer breaches disturb the planned progress of the works. It is primarily a contractual concept rather than a statutory one, used across standard forms and supported by case law principles of causation, proof and mitigation. Under JCT and SBCC forms (England & Wales, Scotland and Northern Ireland), entitlement to loss and expense typically arises for Relevant Matters and sits alongside, but is distinct from, an extension of time. RIAI forms in Ireland also provide for loss and/or expense. NEC and Irish...

Loss and expense claims in UK construction: practical tips on notices, programme and labour records, valuing variations, quantification and early identification under JCT, NEC and related standard forms

Published by a LexisNexis Construction expert

Practice notes

Loss and expense claims

It matters that both employers and contractors know how to handle loss and expense claims and appreciate the practical actions to take—particularly during economic downturns, when construction output falls and margins are squeezed, and it is widely acknowledged that the volume of loss and expense claims rises. Every standard-form construction contract offers a route for a contractor to seek sums beyond the contract price. These amounts usually make good the impacts of variations and other occurrences for which the contractor bears no responsibility. Each agreement sets out a process that must be observed for any claim to succeed. Failure to comply can put entitlement at risk.

Regrettably, Disputes frequently arise because contractors do not study the contract thoroughly or adhere to the correct procedure. When properly applied, appropriate measures can help both contractors and employers steer clear of protracted and disputed final account settlements. Proper application minimises the scope for conflict over the final account. For further information on the character of loss and expense claims and the provisions within standard form contracts, please consult Practice Note: Loss and expense...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...