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The recovery of management costs

By: Series: Contract Journal ; 425(6491) 2 September 2004, 26(1)Publication details: 2004Subject(s): Summary: 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.
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Journal article London Journal article ABS68335 (Browse shelf(Opens below)) 1 Available 127801-1001

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.