Loss and Expense and LAD’s in JCT Contracts

You’re a Main Contractor working on an unamended JCT Design and Build Contract (2016). The project has achieved Practical Completion 8-weeks late owing to a variety of delays by various Subcontractors and you have extra costs and risks to deal with.

The contract has £20,000 LAD’s per week and the client has issued a Payment Notice holding £160,000. What do you do next?

We put together this scenario to Jason Farnell, Adjudicator and CEDR Accredited Mediator from Commercial Risk Management.

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What's in this book?

  • Can they do this?

  • What’s the best way to respond to this?

  • Even though the contract stipulates £20,000 LAD’s, does the client need to justify the amount?

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