Option C Contract in which the WI has changed from refurb 3 filters to replace 2 filters and remove & dispose 1.
How is the change valued? Obviously Defined cost will be paid i.e. costs + fee recoverable but target price has a value for the refurbishment within it therefore should there be negative values within the CE quotation? Is there a way of preventing for instance, a converstion along the lines of the refurb would only cost £500 but replacement £20k each therefore CE value £38.5k?
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For a CE, you assess the effect of the CE on Defined Costs (DC) and the resulting Fee - see clause 63.1.
This includes the reduced DC’s with Fee applied and the increased DC’s with Fee applied.
The overall change is applied to the Prices for the original work - see clause 63.1 !
Agree with what Jon has said. Bear in mind also that if you are concerned this situation is a ‘licence to print money’ (construed from your comments), that any procurement procedures included in the contract documentation are required to be complied with for ALL works, including compensation events. Hopefully your contract documentation contains some clearly defined obligations on this matter.