If the Employer has incurred costs as a result of the Contractor not providing the services, how in an option C does the amount get paid by the Contractor. Is it as simple as the PM deducting the costs from his assessment i.e. in line with clause 50.2 third bullet?
Yes that is correct, although entered on a payment certificate (notice) as a ‘below the line’ adjustment, in that it is not included in any calculation for retention or VAT.
As it is not PWDD it would not be included in a share calculation either.