Omissions of main contractors original scopes

Abstract

“Omissions” is a term that can be described as removal part of the scope of work from original scope of work. Normally, cost of removal scope of work is deducted from the original contract value. In the event to agree on the omissions; The Contractor may argue that omissions of the original scope could reduce their profit “loss of profit”. Hence, there shall be a series of discussions on it and sometimes it will be required litigations to resolve the issues. This research was conducted to determine the issues that prevented the contractor from successfully claiming the loss of profit due to omissions. Legal research methodology was used to conduct this research. Cases related to omissions and loss of profit was used to conduct this research. These legal cases were reported in the Malayan Law Journal (MLJ), which was retrieved from the online database LexisNexis. To achieve the purpose of this research, 4 cases were selected for analysis. Based on the finding of the analysis, there are a few elements that require by the contractor to ensure successfully claims on loss of profit. That element is “Termination of the principal subcontract shall lawful and follow the process as required”, “Contractor must not fail in its counterclaim for damages”, “Balance of probabilities means that all the proof or fact must be consistent” and “Interpretation of the clause must be consistent”.