Any compensation event the Contractor is allowed to include risk which has a significant chance of occurring and is their risk under the contract. Once this compensation is implemented then this would increase the Prices accordingly, and if valid a movement of the Completion Date accordingly.
Under option C the Contractor is then paid their actual cost that they can prove that they actually have spent as part of Defined Cost. If they have spend less than the quote this will lower their forecast cost and increase the "gainshare" which both Parties benefit from. If their planned completion is earlier i.e. TRA was not utilized, this will create "terminal float" which the Contractor owns and is retained in the assessment of any future compensation events.
Under option C the Contractor is then paid their actual cost that they can prove that they actually have spent as part of Defined Cost. If they have spend less than the quote this will lower their forecast cost and increase the "gainshare" which both Parties benefit from. If their planned completion is earlier i.e. TRA was not utilized, this will create "terminal float" which the Contractor owns and is retained in the assessment of any future compensation events.