Can a claim be made by a Contractor for lost overhead if the Client cuts out part of the work so that the final value of the contract is 25% less than the original lump sum contract?
QUESTION
If a lump sum contract valued at say $100,000 is signed with a contractor and the client cuts out part of the work so that the final value of the contract turns out to be $75,000, could a claim be made for lost overhead and profit that would conform to MMCD?
COMMENT
GC 9.4.3 covers the Contractors profit and overhead when quantities fail to meet the Threshold Variance