Omissions and Loss of Profit


I’m 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 relatively large portion (approximately 10% in financial terms) of our scope of works.

These 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, my question is:

Can the Employer simply omit this element of the works and then place an order with Another contractor or can I reject the instruction?

Am I entitled to claim for the Loss of Profit of approximately £30,000 in the Employer omitting this?

If I can claim for Loss of Profit, what do I have to reasonably provide to recover the monies?

When can I claim loss of profit for omissions to contract works?

Does the amount of variations affect if I can claim for loss of overhead and profit?

Jason Farnell answers these questions, click on the link below to read more…

Omissions and Loss of Profit