Omissions and Loss of Profit
You’re working on an unamended JCT 2016 Building Contract with a £3m lump sum Contract Sum. The Employer is looking to amend an element of the works and has issued an instruction to omit a large portion of the scope of works.
The works are now to be varied and completed by Another company. The works are valued at approximately £300,000 including circa £30,000 of profit.
We put together this scenario to Jason Farnell, Adjudicator and CEDR Accredited Mediator from Commercial Risk Management.
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Can the Employer simply omit this element of the works and then place an order with Another contractor?
Does the amount of variations affect if I can claim for loss of overhead and profit?
Am I entitled to claim for the Loss of Profit?