Guides / Claims
Prolongation costs: what can a contractor claim?
Prolongation costs are the extra costs of staying on site longer because of a delay the client is responsible for. They usually cover site overheads and time related items, not the cost of the changed work itself.
What is usually claimable
- Site staff, such as the project manager and the site engineer.
- Site sheds, fencing, power and hire plant that stayed longer.
- Insurances, bonds and guarantees that ran longer.
- Head office overheads, where the contract allows them.
What is not claimable
- Costs of the variation work itself. Those are claimed as part of the variation.
- Costs you would have had anyway.
- Costs from your own delays.
- Costs from a concurrent delay period, in many contracts.
How to price it
Use actual cost records for the extended period where you can. If you must use a formula for head office costs, say so and explain it. Courts and adjudicators prefer proven cost to formulas.
Related answers
Questions
Is an extension of time the same as delay costs?
No. Time and money are separate rights. You may get one without the other.
Can I claim profit on delay costs?
Only if the contract allows it. Many contracts do not.
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