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?

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