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Construction Law/omission and reassigning the same work

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Question
1)Can any work be omitted from a contractor's scope of main scope of work and assigned to a third party? If so what is the remedy for the contractor to have a rightful claim?

2)Same as above but the scope of work was provisional(which I interpret as measurable as all item rates are provided )


Does the contractor have a right to claim loss of profit in both the cases? If so is it on the original value or on the value of the actual work done by the third party assigned by the employer?

Shall appreciate your opinion on the above.

regards,

sampad

Answer
Hello Sampad,

Good evening and thanks for your question.

I am so impressed that you almost answered the questions yourself. Now i will complete the answer in the sequence which you have asked the questions:
Q1. I will say, it depends on the provisions of the contract. However, on a general note, most contract conditions do not permit omission of a contractor's scope of main works and awarding such omitted works to a third party. If then, the contract does not permit such and the employer does so, the remedy the contractor has is to apply for a reimbursement or compensation of any costs / losses and damages he may have suffered as a result of such omission of the works he has contracted with the employer which the employer has not just omitted for reasons of not desirous to have the job done as being necessary to be done for the completion of the works / done but, just for others to do. These losses may include but not limited (as may be evident / evidenced) loss of anticipated overheads and profit.

Q2 - Yes, same as above and this would be based on the value of such works carried out by the third party assigned by the employer.

Hope the above helps?

Femi

Construction Law

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Femi Alofe

Expertise

I can answer all questions relating to the followings: 1. Contract Administration - variations, contract clauses interpretation, all post contract procedures, valuations and certificates questions, extension of time issues and prolongation cost matters. 2. Contract Practice - Any questions regarding forms of contract like JCT, FIDIC & other Bespoke forms. 3. Quantification, measurements and Estimating questions 4. Contracts and construction law questions and dispute resolutions problems. 5. All FIDIC Conditions of contracts

Experience

Out of my 24 years experience in construction industry, i have the following specific experience: 1. Contract Administration - 15 years in contract administration with over 10yrs in Managerial positions covering africa and the middleeast. 2. Contract Practice - 15 years experience with over 10yrs in Managerial and expert positions covering africa, north america and the middleeast. 3. All pre-contract procedures, Tendering, Quantification, measurements and Estimating questions - 20 years experience. 4. Contracts and construction law questions and dispute resolutions problems - 15 years experience with over 10yrs in Managerial and expert positions and 5 years expert witness and active practice in arbitration proceedings covering africa and the middleeast.

Organizations
1. FAIQS - Fellow, Australian Institute of Quantity Surveyors, Australia 2. FRICS - Fellow, Royal Institution of Chartered Surveyors, UK 3. CCP - Certified Cost Professional AACEI, USA 4. PQS - CIQS, CANADA 5. ACIArb. - CIArb, UK 6. MNIQS - NIQS, NIGERIA 7. RQS - QSRBN, NIGERIA

Publications
1. AACEI RP on Estimating, 2010

Education/Credentials
1. B.Tech (QS) 2. RICS professional course, CEM - UK 3. MSc , UK NARIC 4. Professional Doctorate ( to commence 2016)

Past/Present Clients
1. Larsen & Toubro Ltd, Dubai UAE 2. Larsen & Toubro (oman) LLC 3. Archi + Web consortium, Abuja Nigeria 4. George Dike & Associates, Minna Nigeria 5. Public works Authority (Ashghal), Doha Qatar

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