There are contract provisions -see option B clause 60.4.provided the reduction satisfies the criteria stated in the clause. In this case, from what you have said
- there is no inutructuction changing the Works Information (tick)
- "the Defined Cost per unit of quantity" will change as the rate contains fixed overheads so the per unit of quantity costs will change (tic), and
- the unfair one if final total quantity of work done (NOT the change in quantity) x original rate actual is less than 0.5% of the Prices at the Contract Date.
Why is the last one unfair ? Because if it was not even a reasonably major quantity, then if the anticipated quantities reduce so much that the final quantity times rate x rate is less that 0.5%, the Contractor only gets the rate x quantity. In your circumstances, this potentially means you miss out on recovering your overhead / fixed costs.
- there is no inutructuction changing the Works Information (tick)
- "the Defined Cost per unit of quantity" will change as the rate contains fixed overheads so the per unit of quantity costs will change (tic), and
- the unfair one if final total quantity of work done (NOT the change in quantity) x original rate actual is less than 0.5% of the Prices at the Contract Date.
Why is the last one unfair ? Because if it was not even a reasonably major quantity, then if the anticipated quantities reduce so much that the final quantity times rate x rate is less that 0.5%, the Contractor only gets the rate x quantity. In your circumstances, this potentially means you miss out on recovering your overhead / fixed costs.