As a result of a major water mains replacement scheme being undertaken, the subject unit suffered from restricted access and reduced passing trade for over four months.
After a period of liaising with the Water Company’s in-house accountants, an initial offer of £16,216 was received. The offer was based on a direct comparison of sales during the works to the corresponding period in the following year. Whilst this is a common methodology for assessing loss, our extensive analysis identified several trends to suggest alternate statistical models would prove more appropriate.
We recommended that the offer be rejected and submitted a detailed report to the Water Company to support our opinion. This resulted in an increased offer of £68,655.
Once again, based on our recommendations the offer was rejected as it did not fall within the tolerance of our forecasted loss. Following another period of negotiations; this time with the Water Company agreed with our calculation. The claim was settled at £97,000 in favour of our client.