Strange to have two separate contracts but I assume there must have been a reason for that at the time.
Yes I would say the saving for a defect should be assessed as part of the fabrication contract. I assume that the installation of the item will take the same time to install with or without the "defect".
A point of note, whilst you get paid for correcting defects before Completion under an option C contract, don't forget that it will eat in to your gain-share proportion so it is never good to do defects. It just means the cost is shared before Completion but not after.
A client never has to accept a defect, they have the option to make you correct it if they do not agree with the quotation for the saving.
Yes I would say the saving for a defect should be assessed as part of the fabrication contract. I assume that the installation of the item will take the same time to install with or without the "defect".
A point of note, whilst you get paid for correcting defects before Completion under an option C contract, don't forget that it will eat in to your gain-share proportion so it is never good to do defects. It just means the cost is shared before Completion but not after.
A client never has to accept a defect, they have the option to make you correct it if they do not agree with the quotation for the saving.