Prolongation Costs: Where Now After Costain v Haswell?

Dr Ronan Champion

June 2011

A paper presented to meetings of the Society of Construction Law in Reading on 29th March and Manchester on 9th May 2011

The decision in Costain v Haswell, the author explains, is of interest because it contains some detailed consideration of claims to recover contractor's site overheads arising from delays, of a 'winter working' claim, and of the nature of proof required for such claims. Some statements of principle made in the decision would suggest that significant changes are required to conventional understanding as to how claims for costs arising from prolongation costs should be assessed. He takes a critical look at the TCC decision which appears to make proving such a loss significantly harder.

Introduction - What are prolongation costs? - Recovery of site overhead costs: established principles - Calculating additional site overheads - The decision in Costain v Haswell - The claim for winter working - Proof of time claims: some new requirements? - Measuring losses: from what date? - Costain v Haswell: a departure from established principles - Two examples - Conclusions.

Ronan Champion BSc LLB PhD FRICS FCIOB MCIArb is a partner of Champion Pearce LLP in London.

Text 16 pages.