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NEC3 PSC: Dealing with Negative Compensation Event

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Can you have a negative compensation event in PSC Option A contract for design team if tasks outlined in the scope of services are no longer required? How do you agree the costs of these tasks if they have not been itemised in the Activity Schedule?
asked Oct 23, 2016 in Compensation Events by JBen (150 points)  
edited Oct 24, 2016 by JBen

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Yes you can have a "negative" compensation event - assuming this was originally a clear requirement in their Scope. You then assess this as a (negative) compensation event, for which you calculate the forecast cost of not doing this work and then adjust the Prices accordingly. The activity schedule should be amended to reflect the revised total of the Prices. When you say "agree" - as Project Manager you are able to assess yourself (in accordance with the contract) if you do not agree with their quotation.
answered Oct 23, 2016 by Glenn Hide Panel Member (87,060 points)