Are you aware of your rights when portions of the Works are Omitted?

Asked 2 years ago

2021-04-01 13:15:58

It's becoming an increasing practice for some Contractors and indeed, some Employers to omit portions of the Contract Works or the Sub-Contract Works and then have that same work carried out by others, mainly because they have obtained a cheaper price for that work.

Whilst this may happen, are you aware of what your rights are when your contracting party does this?

To put it simply, you have a right to the loss of overhead and profit on the omitted work that you would have obtained if the work was not omitted. An Employer and/or a Contractor cannot omit works [check the amendments to your contract though] and have that work conducted by others. The standard forms of contract whilst permitting the omission of works, does not prevent you from recovering the loss of OHP if that same work is then carried out by another firm on behalf of your contracting party.

The cases of Abbey Developments Ltd v PP Brickworks Ltd [2003] EWHC 1987 (QB) and Strafield Saye Estate Trustees v AHL Construction Ltd [2004] EWHC 3286 (TCC) are authority of this.

I am interested to know if your firm or you know of someone who had work omitted and was then carried out by others but they did not, or was not aware that they can still make a claim for the loss and OHP as a loss and expense claim?

Andrew Crawford
Andrew Crawford
Director at CAP X SOLUTIONS LTD

Asked on Thu, Apr 1, 2021 1:15 PM

Get full access to our construction knowledge base, latest news and updates ... Join the discussion.

Create your FREE Account

By signing up, you agree to Construo's Terms of Use, Privacy Policy and Cookie Policy

OR

Already on Construo? Let us take you to