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This has been stated in Anson’s Law of contract, 26 th Ed. The reason for success, it appears is its basis: the universally accepted principle for assessing damages. The author claims he had successfully used the method suggested by him in his practice in India for the past over 32 years. The method suggested by the author is not only based on the basic principle of assessing damages but also incorporates all the best features of the above three well-known formulae minus the deficiencies noticed in them. Patil, “Saish”, 120, National Society, Pune 411007 India). Patil in his book: Building and Engineering Contracts now in its 6 th edition of 2011. It is high time the industry as also judiciary takes note of the fourth method suggested by B. Unfortunately all of them have crucial defects in their use in practice. The following three formulae have been traditionally used in calculating such loss.

Compensation for overheads is generally worked out based on the said percentage. From these known elements the percentage of overheads incurred by a company vis-a-vis its turnover can be worked out. The books of accounts and balance sheets of a company show the actual overheads for the company as a whole for each year as also the total turnover of the company or receipts from the contracts. It is, therefore, difficult to establish actual loss on account of overheads in a given contract except on pro-rata basis. The overheads include several dozens of heads of expenses incurred by the head office for a company as a whole and which are neither attributable to an item of work in a given contract nor for a given contract as a whole. A contractor seeking compensation has to prove the actual loss incurred. Claims of compensations invariably include significant sums by way of overheads and expected profit. Under the well settled law, a contractor is entitled to compensation for the delayed completion, if the delay is caused by breaches of contract conditions committed by the Employer. Construction projects invariably get delayed for variety of reasons in India and also elsewhere.