The term Defined Cost for future CE. I am not certain how the SSCC fits into this and how the remainder of items is to be priced.
If the client reduces scope on a breakwater crest height by a negative CE how do we calculate the future cost, can we adjust our production rates for placing of the rock due to slower delivery of the rock and more stringent QA?
Any change to the Works Information is assessed by using Defined Cost under any option, unless both Parties agree to use unit rates or bill of quantity rates. Therefore you assess the impact of this compensation event using the SSCC. Any cost or time implications of this instruction will be built up using the seven categories within the SSCC. If this reduction impacts the rates on other items(positive or negative) then that can all be (and should be) assessed be this compensation event quotation. Any CE will be the forecast Defined Cost on how it will impact the future works from the point at which the instruction is given. Obviously you have to go some way to prove any costs within your quotation - as any Project Manager would be naturally suspicious as to any quote a Contractor puts forward.