# NEC4 Core Clause 63.4

**URL:** <https://reachback.builtintelligence.com/t/nec4-core-clause-63-4/22038>\
**Category:** Compensation Events\
**Tags:** nec\
**Created:** [11 December 2024 01:14 UTC](https://reachback.builtintelligence.com/t/nec4-core-clause-63-4/22038 "2024-12-11T01:14:13Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![acheung](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/acheung/32/426_2.png) [@acheung](https://reachback.builtintelligence.com/u/acheung)\
**Post date:** [11 December 2024 01:14 UTC](https://reachback.builtintelligence.com/t/nec4-core-clause-63-4/22038/1 "2024-12-11T01:14:13Z")

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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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**Author:** ![engineering](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/engineering/32/105_2.png) [@engineering](https://reachback.builtintelligence.com/u/engineering)\
**Post date:** [13 December 2024 18:51 UTC](https://reachback.builtintelligence.com/t/nec4-core-clause-63-4/22038/2 "2024-12-13T18:51:40Z")

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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.