Hi, If a PMI is raised to reduce a section of work from the scope. Does the contractor raise a negative CE to reduce the cost of the omitted work and fee % from the forecasted cost ?
Typically, however more information would be required. What was the reason for the reduction of work from the scope ?
It tends to be when the wrong information was added to chamber schedules, supplied by the client at the pricing stage. Thanks
Then using your example, if incorrect information was provided which i assume now means the works are not required, then a Compensation Event should be raised where you would expect are reduction to the Prices / Target Cost. Note, any costs already incurred, or things like abortive costs could be recovered. This will include Fee.