Common use of Reduced Scope of Services Clause in Contracts

Reduced Scope of Services. The Owner shall have the right, by written notice to the Consultant, to reduce the scope of Services to be rendered hereunder. In the event the scope of Services are reduced by the Owner, the Consultant shall promptly notify the Owner in writing after receipt of such notice of the amount by which the total compensation for that particular scope or service should be reduced. The reduction in compensation shall be calculated on the basis of the Consultant’s labor estimates and labor-hour costs for such Services and the related reimbursable expenses. The Consultant’s notice to the Owner shall show this calculation in reasonable detail. The Owner shall, with reasonable promptness after receipt of the Consultant’s calculation of compensation reduction, notify the Consultant in writing of its acceptance or objection to the amount of compensation reduction, together with the Owner’s determination of the proper amount of compensation reduction, which determination shall be conclusive.