NEC3 Option C Contract; if an activity is descoped, it leads to a reduction in the Total Of The Prices (-ve CE), does this lead to a reduction of the overall target ? (reduced by the activity value amount), or does the target remain the same value with the Contractor getting paid defined cost (so never gets paid for the descoped work), but gets a percentage gain share of the descoped activity value ? (this would be favour the Contractor) ? Put simply the target moves up with additional work (cl.14.3), but is it always revised down via descope ?
in simple terms, the total of Prices is the target. So where there is a change in Works Information/Scope that is a compensation event, in this case a reduction, there is a downwards change to the Prices/target. There are some exceptions where the Prices are not reduced such as if the change is due to a Contractor’s proposal the Prices/target is not adjusted.One other point, the reduction in the Prices is not by the activity value amount unless this is agreed with the the Project Manager. The reduction is assessed as a compensation event.