Diligence (lost work)

Diligence (lost work) refers to the effort and costs incurred when a party, such as a contractor or supplier, prepares work or resources in reliance on a contract or agreement. If the other party then fails to fulfill their obligations, the diligent party can seek compensation for the expenses and effort invested—these are known as “lost work” damages. Essentially, it’s about protecting individuals or companies that have invested time, labor, or materials based on a contractual expectation, ensuring they’re not unfairly disadvantaged if the agreement falls through.