Where Work Is Omitted from a Contract; The Impact on Existing Material Supply Contracts

•Work Variations(Work Omissions) issued by architects or engineers often put contractors to substantial additional expense.

•Standard forms of contract are not always precise as to how variations are to be valued.

•Often, arguments take place as to whether a particular item of expenditure may be recovered.

•The engineer, when carrying out a fair valuation under the conditions of contract, in respect of a variation to omit work which includes materials received from a supplier, should provide fair compensation to the contractor for any adverse financial effect upon it resulting from the variation.

•This would include a legitimate loss of profit claim from the supplier.