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#92:  Lost Profits and Waivers of Consequential Damages

NH Construction Law

In the law of contracts, damages suffered by the nonbreaching party may be either “direct” (loss of the benefit of the bargain, measured by the cost of remedying the deficient performance) or “consequential” (other reasonably foreseeable harm caused by the breach). In Mentis Sciences, Inc. 3d 799, 808, 11 N.E.3d

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Ohio Court Reforms Construction Contract to Correct “Manifest Absurdity” in Termination for Convenience Term

Constructlaw

which provided that the Owner will make payments for “work executed, including reasonable overhead and profit and direct costs incurred by reason of such termination.” including a 25% margin for overhead and profit. BoMar argued that the cross-reference to Section 13.1 in the event of a termination by the Owner because Section 14.1.3

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Huge Construction Company Profit Increases Are From Tiny Changes

Contractor Bookkeeping

We are happy to be able to offer free Invoice templates, free Change Order templates and free estimate templates to construction contractors and other business owners to help them grow their sales and profits and have better lives for their families. Change Orders are a huge source of new profit. Click here to learn more.

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Contractors Job Costing Library The Key To Increased Profits

Contractor Bookkeeping

The archeologist struck a bargain with the contractors that if they would work together and deliver the Treasure Box to his office in New York City they would be rewarded handsomely. He gave them a letter written in Latin to be delivered to his partner along with the Treasure Box with instructions regarding the contents of the Treasure Box.

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Are Project Owners Abusing Termination-for-Convenience Clauses?

Construction Dive

The owner is not liable for the contractor’s anticipated profit on the unperformed work. This sounds like a balanced bargain, yet contractors have long complained about the process. Contractors also contend owners allow them to perform unprofitable portions of the work and then terminate profitable portions.

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#98:  Good Faith Limits on Termination for Convenience

NH Construction Law

Contractor shall not be entitled to receive payment for any lost profits. Many termination for convenience clauses require the payment of reasonable overhead and profit on unperformed work to a party terminated for convenience. In Hate to Paint , lost profits after termination for convenience were specifically excluded.

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The pricing/branding conundrum

Construction Marketing Ideas

I’ve never believed we were getting a bargain-basement price from them, however, and have always hoped/imagined that there could be a better price. If we can collect a higher price for the “same” services, we achieve exceptional profitability. However, there is a boundary here. The bottom line still counts.