Refer to NEC4 Option C Core Clause 63.4, if PM issued a CE under 60.1(1) to change (reduce) to the Scope, will the Prices be reduced?
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“Probably”. The PM can issue a change to the Scope, via a Project Managers Instruction (Cl14.3), they should notify a Compensation Event. The change could be a descope of works, reduce a quantity, minimise a design etc. The Contractor prepares a forecast of Defined Cost + Fee and submits to the PM for acceptance. The PM then implements the Compensation Event and reduces the Total of the Prices (the Target comes down)/ The CE is included as a new activity in the activity schedule. I say “probably” because it’s not a guarantee that the instruction would reduce the prices, if you issued it late in a programme it may cause the Contractor more in abortive costs than completing the planned work, so in rare cases it could go the other way.