The contractor is to provide site accommodation between specific dates but has failed to do so. Can the target cost be reduced under a negative CE accordingly?
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I see no where under clause 60.1 that you can notify that this is a compensation event.
You could instruct them to provide the accommodation that is a requirement of the Works Information (which equally would not be a compensation event) to try to make it happen.
You could raise an early warning and request a risk reduction meeting, highlighting the problems that the lack of accommodation could bring.
You could look and see if there is any associated disallowed costs 11.2(25) that have occurred only because they did not provide the accommodation as required in the Works Information.
Ultimately any cost saved by not providing the accommodation will be at least shared,under the pain/gain mechanism depending on what the split is. This will be a cost not incurred so should increase the “gain share” pot.
Everything Glenn has side is correct, except if the Project Manager instructs a change to the Works Information to remove the site accommodation. It then becomes a negative compensation event under clause 60.1(1). (One of only two core compensation events which may reduce the Prices).
I would surmise, this may not be quite the full story. The questioner did say option C of the NEC applies. In the Option A, which i am most familiar with, clause 63.10 is relevant, for without it, cl 63.2 does not allow a reduction in the defined cost. Thus the PM can change the WI in accordance with 60.1 (1) by deleting the requirement to provide an office, then adjust the Defined cost accordingly. i.e downwards. according to 63.10
I read - but have no experinece of it - that in Option C 63.11 has similar wording. One should avoid using the words “Negative CE” in the NEC context, it is contractually confusing.