The PM removes section of work as on bill of quants and WI. Can the Contractor claim cancellations costs incurred through booking labour and haulage?
Yes it’s the change in Defined Cost that you’re assessing in your quotation, if you have cancellation costs then these would be added back against the cost of the omission.
Note that the quotation should be based entirely on Defined Cost unless the PM and Contractor agree to use rates and lump sums (from the Bill of Quantities or elsewhere).