Lost profits? Then prove it

By Jeffrey Brown2019-01-31T06:00:00

A damages claim for delay can include head office overheads and lost profit if certain conditions are met

Sir Antony Edwards-Stuart in a judgment of 16 March 2018, involving Fluor and Shanghai Zhenhua Heavy Industry Co Ltd (ZPMC), denied the successful claimant any entitlement to claim head office overheads and profit. This ruling reminds us of the requirements for claiming head office overheads and the importance of adducing credible evidence to support them.

The facts related to the fabrication of steel piles and transition pieces for an offshore wind farm in the North Sea. ZPMC, a steel fabricator based in Shanghai, had supplied these components to Fluor, which had in turn agreed with its own client to engineer, procure and construct the foundations and infrastructure to support 140 wind turbine generators being installed 26km off the coast of Suffolk.

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