About this CPD Resource
Understanding the grounds, process and substantiation requirements for recovering loss and expense under standard form construction contracts including JCT and NEC4.
Loss and expense claims are the financial counterpart to extension of time claims — compensating for the financial impact of employer-caused disruption and delay. Under JCT contracts, contractors have a contractual right to recover loss and expense caused by specified matters. Understanding how to build and evaluate these claims is a core quantity surveying competency.
Learning Outcomes
- Identify events giving rise to loss and expense entitlement
- Submit loss and expense applications correctly under JCT
- Quantify loss and expense claims with appropriate supporting evidence
- Understand the distinction between direct loss and prolongation costs
Who Is This Suitable For?
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Why This CPD Matters
Construction contracts are the legal foundation of every project. They define the obligations of clients, contractors and consultants; determine how risk is allocated; establish the mechanisms for valuing and paying for work; and provide the framework within which disputes are resolved when they arise. Despite their fundamental importance, construction professionals frequently lack formal training in contract law and contract administration, leading to disputes, claims and project overruns that could have been avoided with better contractual understanding.
The NEC4 suite of contracts — now the most widely used form on UK infrastructure and public sector projects — and the JCT suite — dominant in private sector building work — each require specific knowledge for effective administration. The Public Contracts Regulations 2015 govern procurement by public sector clients and are about to be substantially reformed under the Procurement Act 2023. This CPD from Designing Buildings contributes to the contracts and procurement knowledge that construction professionals need to manage contracts effectively and protect their clients' and their own interests.
Key Topics and Industry Context
Contracts and procurement in construction encompasses the full range of legal and commercial mechanisms used to procure and execute construction work. Standard forms of contract — including NEC4, JCT, ICC and FIDIC — provide tested frameworks for allocating risk and managing the commercial aspects of construction. Procurement strategy — deciding whether to use traditional, design-and-build, management contracting or collaborative procurement approaches — significantly affects project outcomes and requires careful analysis of client requirements, risk profile and market conditions.
This resource from Designing Buildings addresses contracts and procurement knowledge that is directly applicable to construction projects. Whether you are advising clients on procurement strategy, administering a contract as a project manager or contract administrator, or managing a supply chain as a main contractor, developing contracts knowledge through structured CPD is an investment that pays dividends throughout your career.
How This Fits Your CPD Requirements
RICS recognises contracts and procurement as core competency areas for several of its assessment pathways, and RICS members practising in quantity surveying, project management and construction management need strong contract knowledge. CIOB includes contract management within its competency framework. APM recognises contract management as a key project management competency. RIBA-chartered members who act as contract administrators need current knowledge of the relevant standard forms and their administration requirements. ICE members involved in infrastructure procurement need understanding of NEC and other infrastructure contracts.