We have an option E project where we have omitted £10000 of tendered work, but added in £20000 of work including Fee should the omitted work be the omission plus fee which would effectively reduce the additional cost to the client, my view is that the omission should be 10000 a colleague thinks we may be missing a trick to reduce the defined cost to the client a third party comment would be appreciated?
I am not sure if I fully understand the question, in part because what I think you are asking is irrelevant under an option E, cost reimbursable contract. This is because you are paid Defined Cost plus Fee, so in simple terms £20k additional Defined Cost + Fee work minus £10k Defined Cost + Fee = +£10k Defined Cost + Fee that you are paid.
Note that I emphasise ‘Defined Cost + Fee’ which is the basis for how you are paid … not on forecasts !