(1) This section sets out the classes of amounts ( excluded amounts ) that must not be taken into account in calculating the amount of a progress payment to which a person is entitled under a construction contract.
(2) The excluded amounts are—
(a) any amount that relates to a variation of the construction contract that is not a claimable variation;
(b) any amount (other than a claimable variation) claimed under the construction contract for compensation due to the happening of an event including any amount relating to—
(i) latent conditions; and
(ii) time-related costs; and
(iii) changes in regulatory requirements;
(c) any amount claimed for damages for breach of the construction contract or for any other claim for damages arising under or in connection with the contract;
(d) any amount in relation to a claim arising at law other than under the construction contract;
(e) any amount of a class prescribed by the regulations as an excluded amount.