Where a building subcontract is terminated without breach and the contractual valuation methodology is inapplicable, the court must start from the agreed contract price for work within the contractual workscope, valuing it proportionately to the degree of completion, while work outside the workscope is valued on a cost-plus basis. The contractual margins for variations are a powerful consideration in determining the appropriate margin for overheads and profit on cost-plus work. The profit component on completed work should not include an allowance for risk or contingencies.
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