NEC3 ECC: Can activities under an option A simply be removed from the scope of works?

Under an option A contract, we have priced an activity schedule for the client (prepared by us). As the works have progressed, we have been told that a number of activities will no longer be required. The client has therefore requested we simply remove them from the tendered total of the prices (i.e don’t claim them).
Should in theory we be able to price the activities as stand alone negative CE’s for the reason we have allowed additional profit per say in an activity which we thought we would carry out early on. If we delete this activity, we will lose the benefit of that profit. Surely a reduction in scope should not hinder our pricing strategy and any gain we allowed for on the project?

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Only by agreement do you use the activity schedule rates to assess a compensation event. Otherwise it is back to defined cost/schedule of cost components as to what it would have cost you to do the works. Bad news is that you have to include fee on what it would have cost you, but the good news is that any other cost that you would have incurred or saving that you wouldn’t have been able to take advantage of would be assessed within the saving.

For example, if they deleted have the number of quantities of an item which meant the rate for the remaining quantity would increase then this would be taken into account of any saving.