Are the Prices reduced if a compensation event reduces the total Defined Cost and the event is a change to the Works Information?
The ‘default’ answer is “Yes” under option A and B clause 63.10 and option C and D clause 63.11. However, the true answer is “it depends” on whose Works Information is being changed and under what main payment option you are under.
Under any main payment option, if it is Works Information provided by the Contractor that is changed either at his request or to comply with that provided by the Employer, then it is not a compensation event at all. See the second bullet point of clause 60.1 (1). Under the target cost options C and D clause 63.11, if the Contractor proposes a change to the Employer's Works Information and the Project Manager accepts this, the target Prices are not changed. Instead, the parties share the savings through the pain / gain target cost mechanism.