I have come across a situation where the subcontractor claims defined cost and the compensation event for the loss of shift. It is based on Option C defined cost mechanism with a Pain/Gain option.
Initially the works were programmed to carry out for 2 shifts but due to the TM issues the key subcontractor couldn’t get the full output so they had to revisit to complete the works on an additional shift now the revised programme is 3 shifts.
Now the subcontractor applying the full shift on the day lost which I agree as it is their defined cost but they claim a CE on the same event to adjust the target. Therefore the net effect to subcontractor pain/gain is zero. Is this a correct way of approach? Please give your valuable answers. Many Thanks