Construction Law/Loss of profit


I am working as a Sr. QS in UAE.

As per FIDIC 1999, is the Contractor entitled to claim the loss of profit on omitted work other than the incurred costs on omitted work. if yes, which clause allows the Contractor to do so


Dear Saji,

Thank you for your question.

Sub-Clause 13.1 [Right to Vary], point (d), allows for "omission of any work unless it is to be carried out by others", but does not say anything about any entitlement to loss of profit.

The only relevant place where "loss of profit" is mentioned in the FIDIC Conditions of Contract is in Sub-Clause 16.4 [Payment on Termination], which seems not to apply in your case.

It is also mentioned under 17.6 [Limitation of Liability], but that's a different story.

Hence, the only resort the Contractor may have, is under Sub-Clause 12.3 [Valuation], providing that due to omitted quantities, total value(s) of respective varied items fulfil the cumulative requirements under second paragraph, point a) i-iv.

Trust that answer your question.

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