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.