Can a contractor recover the cost of preparing and presenting a claim?
Ordinarily, the cost of performing the contract's claims procedure is not separately recoverable. Additional preparation cost may be recoverable where it is caused by a separate breach, or may fall within a tribunal's costs jurisdiction once dispute proceedings are contemplated.
Routine claim preparation is usually the contractor's own contractual cost; exceptional additional cost requires a separate legal basis
First classify the work performed. Notice, records and particulars required by the contract are ordinarily part of performance. Further work caused by an unreasonable failure to assess or pay may be claimed as damages if breach, causation, remoteness and quantum are proved. Internal management time can be recoverable where staff were diverted from productive work. Legal, expert and consultancy work undertaken for proceedings is governed by the applicable costs regime and cannot simply be added to the substantive claim.
| Issue | Position |
|---|---|
| Required contractual submission | Ordinarily not separately reimbursable |
| Extra work caused by breach | Potential damages claim |
| Internal management diversion | Recoverable if loss and time are proved |
| External consultant | Requires necessity, reasonableness and legal basis |
| Proceedings preparation | Usually governed by costs jurisdiction |
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