Does a Contractor is entitled for a lost profit claim if the scope of works in the contract has been reduced with a condition of without breach of contract? (e.g. Contract to construct 10 bridges has reduced to 7 bridges)
1 reply
Oct 26, 2020
That is going to depend greatly on the specific contract terms, and also the extent to which the contractor has spent money (materials and such) in reliance on the 10 bridge construction. The question is almost impossible to answer without looking at the actual contract terms. Some contracts have limitations on damages, or the contract could be a "cost plus" contract, which might mean that there are no costs on which to base a percentage to calculate the profit. It all just depends.
That said, yes a lost profits claim is certainly recognized under Arizona law and it is possible the contractor would have one.