Thickening claims
At its simplest, thickening is a contribution to a claimant’s increased overheads resulting from a client-culpable delay. Thickening is a legal term used in claims when claimants are legally entitled to claim extra costs – over and above the direct costs they may be already claiming – as a result of a delay which is outside their control.
For example, where an extension of time is granted to a contractor, they may also be entitled to claim for time-related costs for the delay period, in other words, in addition to the claim for direct costs, they may also be able to claim for ‘thickened’ overheads resulting from client/employer culpable delay or disruption.
In thickening claims, the claimant must, for example, prove that their head-office overheads had ‘thickened’, i.e. had increased, as a result of the defendant’s breach.
A celebrated case of thickening from October 2016 was that between contractor Flour, which had been engaged to construct an offshore wind farm, and steel fabricator ZPMC. Cracking had occurred in the welding of the steel monopoles and the transition pieces of the turbines for which the court held ZPMC to be in breach of contract. Damages of £15m and €7m were awarded to Fluor as part of direct costs caused by the breach and included costs of additional project management staff, consultants’ costs for the remedial works and costs for extra plant and equipment, as well as for providing extra storage space.
However, in addition, Fluor also claimed for ‘thickening’ costs amounting to 4% of the award – comprising overheads to reflect the increased head-office costs that were necessitated as a result of dealing with the breach of contract. Fluor argued that the thickening costs were just as much a result of the breach as were the direct costs.
The landmark case introduced the concept that certain overhead costs can be linked to a breach of duty just as if they were ordinary losses, i.e. direct losses that include items such as new materials, extra labour and consultant costs necessitated by the breach.
[edit] Related articles on Designing Buildings Wiki
- Adjudication.
- Adversarial behaviour in the UK construction industry.
- Alternative dispute resolution.
- Arbitration.
- Causes of construction disputes.
- Civil procedure rules.
- Conflict avoidance.
- Contract sum.
- Contractual right.
- Construction contract.
- Dispute resolution.
- Dispute resolution boards.
- Disruption claims in construction.
- Expert witness.
- Extension of time.
- Final account.
- Housing Grants, Construction and Regeneration Act.
- How to prepare a claim for an extension of time.
- Litigation.
- Liquidated damages.
- Loss and expense.
- Mediation.
- Modifying clauses in standard forms of contract.
- Notice.
- Preliminaries.
- Scheme for Construction Contracts.
- Variation.
- What is a default?
Featured articles and news
BSRIA Briefing 2024: Sustainable Futures speakers
Redefining Retrofit for Net Zero Living 22 Nov.
Wall of support for post-Grenfell regulation of electricians
Call for a shake-up of the construction industry highlighted on radio.
Digital sustainability through future AEC tools
Bringing together industry and academia to meet challenges.
Skills gap for net zero highlighted to Minister for Industry
ECA convenes roundtable discussion at Portcullis House.
Evidencing Net Zero with the new UK buildings standard
Pilot version with detailed excel proforma out now!
Scottish Building Safety Levy, in consultation
From direct remediation and the RPDT, to the costs and alternatives.
Waves of warmer homes grants for the rental sector
Boosting energy efficiency standards for all rented homes.
A refocus of the National Planning Policy Framework
Key terms described in brief, as the consultation closes the evening of the 24th.
Fortified farmhouses of the unruly 16th-and 17th-century borders.
ECA shares advice for those who may be exposed to risks.
How to revolutionise UK housing with MMC
CIC and Supply Chain Sustainability School unveil a plan.
From the UKs largest manufacturer and supplier of lime.
From mud bricks to smart concrete
A brief history from 7000BC to a future on the moon.
Regulator of Social Housing publishes latest fire safety report
Covering remediation of 11 metre plus social housing sector buildings.
Apartment and Duplex Defects Remediation Bill 2024
Approved for priority drafting by Government of Ireland.
The long list with in the frame of key historical events.
Competence frameworks for sustainability in the built environment
Code of practice, core criteria consultation draft for comment.
New Floods Resilience Taskforce
With a wet met office autumn prediction.