NEC3 Option B Subcontract - Omission of Works

We are the subcontractor and the client has instructed the omission of part of the works which equates to circa 50% of the subcontract value. We have not commenced any works on the omitted element of the project but have committed staff hours to planning the works and assisting the main contractor in coordinating the works etc. We have also bought materials which now cannot be used and placed orders with subcontractors who will also have a significant value omitted from their sub-subcontract orders. Is there any means of claiming back the time our staff have spent coordinating the works i.e. overhead cost and loss of profit or can I only claim back our defined cost plus fee for materials and the subcontractors? and is there anything else we can claim costs for which I have overlooked in the above?

Just for your information, unless the Subcontract specifically allows, the Contractor cannot legally award the omitted works to another subcontractor.

The omission is a change to the Subcontract Works Information, i.e. a CE with the effect of reduction of the total Defined Cost, and therefore the Prices. The assessment would be in the form of changes to the BoQ, whereas for items not included (e.g. the committed costs you referred to), new lump sum items should be inserted (see last two bullet points of clause 63.13).

The time spent by your staff and the materials, should either be included in the above “additional” items, or incorporated into the changed quantity or lump sums of the affected part of the Subcontract Works.

Regarding loss of profit, unfortunately there is no such provision in this form of contract - you need to follow carefully the cost components included in the SSCC (in which you might identify part of your overheads if there is connection to the Subcontract Works), which form your Defined Cost. Anything else, is deemed to be included in the Fee.