NEC TSC Termination by Employer

Can the Contractor claim Loss of profit when the Employer terminates the contract 1 year before the Completion Date using R20 “for other reasons”?

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No. If terminating for reason R20, the Contractor is paid amounts A1 and A2 where :

  • A1 is (paraphrasing) for payments, in accordance with the contract, for work done to date and costs incurred in expectation of completing the works, and
  • A2 is the forecast Defined Cost of removing any Equipment.

A4 is for lost margin - e.g. the tendered percentage for head office overheads and profit - but does not apply for reason R20.