The recovery of management costs
Brewer, G.
The recovery of management costs - 2004 - Contract Journal 425(6491) 2 September 2004, 26(1) .
Discusses "Euro Pools plc v Clydeside Steel Fabrications Ltd" (OHCS,unreported) which concerned whether a claimant may be entitled to recover management costs as a head of claim. E was engaged to install filtration systems for swimming pools and had subcontracted C to fabricate and supply the tanks. When, shortly after installation, the tanks started to suffer widespread corrosion, E claimed costs of remedial works from C, including time and travel costs of E's employees on the work and compensation for work they were unable to take on at this time. C argued no extra remuneration would have been earned, as staff just had to work harder. Judge found for E arguing that where employees are required to spend time on rectification works following a breach of contract, the employer will normally be entitled to recover the cost of the wages paid to those employees, together with a contribution to general overheads. View judgment at www.scotcourts.gov.uk.
EURO POOLS PLC V CLYDESIDE STEEL FABRICATIONS LTD
AMEC PROCESS AND ENERGY V STORK ENGINEERS AND CONTRACTORS
PHEE FARRER JONES V CONNAUGHT MASON
CLAIMS
MANAGEMENT COSTS
SUBCONTRACTORS
The recovery of management costs - 2004 - Contract Journal 425(6491) 2 September 2004, 26(1) .
Discusses "Euro Pools plc v Clydeside Steel Fabrications Ltd" (OHCS,unreported) which concerned whether a claimant may be entitled to recover management costs as a head of claim. E was engaged to install filtration systems for swimming pools and had subcontracted C to fabricate and supply the tanks. When, shortly after installation, the tanks started to suffer widespread corrosion, E claimed costs of remedial works from C, including time and travel costs of E's employees on the work and compensation for work they were unable to take on at this time. C argued no extra remuneration would have been earned, as staff just had to work harder. Judge found for E arguing that where employees are required to spend time on rectification works following a breach of contract, the employer will normally be entitled to recover the cost of the wages paid to those employees, together with a contribution to general overheads. View judgment at www.scotcourts.gov.uk.
EURO POOLS PLC V CLYDESIDE STEEL FABRICATIONS LTD
AMEC PROCESS AND ENERGY V STORK ENGINEERS AND CONTRACTORS
PHEE FARRER JONES V CONNAUGHT MASON
CLAIMS
MANAGEMENT COSTS
SUBCONTRACTORS