What costs are non-recoverable by the Contractor after termination of the Agreement?

The correct answer pertains to anticipated profits on services. In the context of a contractor agreement, when the contract is terminated, the contractor cannot recover profits they had expected to earn from the work outlined in the agreement. This principle emphasizes that once the agreement is terminated, the contractor is typically limited to recovering only the direct costs incurred in connection with the actual services provided up to the termination point. Anticipated profits are inherently speculative and dependent on the successful completion of the project, which is no longer viable if the contract has ended.

Costs for materials, payments made for services, and funds approved by the City may be recoverable under certain conditions, as they represent expenses or commitments that were made in direct relation to the work performed. Therefore, anticipated profits stand out as the only type of cost that lacks recoverability after termination, underscoring the contractual principle that prevents contractors from claiming earnings that were not realized due to early termination.