In construction law, contractors are entitled to payment for work performed and variations. However, if disruptions happen from the employer’s side, contractors are also entitled to claim compensation for losses and expenses. Contractual claims and legal damages are related, but they have distinct remedies. Contractual claims are those that can be settled through a contract administratively. To get a contractual claim, strict compliance with the agreement is necessary. Contractual claims are grounded in the contract.

Even after the project is completed on time, contractors can still claim compensation for loss and expense if the employer disrupts the progress of work. This is not related to the extension of time, which covers delays caused by both neutral events. Loss and expense-related claims are those that arise from the employer’s actions or omissions, such as if the employer is late in giving instructions, fails to provide access, or interferes with the work. If these claims are not based on explicit contractual provisions and fail to require strict compliance with procedural requirements, then the contractor may have to depend on damages under common law. ‘Loss and/or expense’ and damages for breach of contract are treated in the same way in the courts. However, proof of actual loss and a clear causal link with the employer’s actions must be provided with the claims.

Croudace Construction Ltd v Cawoods Concrete Products Ltd shows a practical approach to this claim. It focuses on the principle of foreseeability rather than rigid wording. This case allowed recovery due to loss of productivity and inflationary cost, although there was an exclusion of consequential loss. Moreover, claims for loss and damages serve as a safeguard for contractors against employer-caused disruptions. However, the success of such a claim depends on careful compliance with contractual procedures and strong evidence of loss.