Big H - You're referring to typical clays, NOT those at 95% of modified, right? At 95% of modified, the material probably needs 15 m or more of overburden pressure to make it be contractive. We don't worry much about that stuff too much.
But yes, you are correct to pay attention to decrease in strength w/ cyclic loadings if they will push the peak strength. In general, saturated clays show sensitivity, i.e., remolded strength less than peak, and will show decrease in strength with very large cyclic shear strains and buildup of excess PWP, but just loss of stiffness with smaller cyclic shear stresses that stay below the peak strength. Sensitivity ratio can be anywhere from 1.5 to VERY high in Scandinavian and Quebec quick clays, with 2 to 4 being most common. Idriss and Boulanger recently ~2007 published a big report on cyclic failure of clays, sensitive and otherwise. (I'm fairly sure that it's not in the public domain, so I can't post it for you, unlike that report I promised to post for McCoy last week.) Like their liquefaction red book, it will probably be considered the state of practice in the near future. They show cyclic failure eventually occurring with repeated loads that flirt with the monotonic peak strength but don't quite reach it (like 95%).
Funny you should bring this topic up. In a dynamic deformation analysis, the trick (OK, one of many tricks) is deciding how much deformation it takes to reduce the strength from peak to fully softened to remolded strength. I was considering posting a new question to see if anybody knew of any well analyzed case histories or centrifuge research or anything else that would provide a good analog. The one good case history I know of is the 4th Ave, Anchorage AK slide in 1964, on which I have papers by Idriss and by Stark and Contreras, and of course that is different geology, stress history, clay properties, etc. from the case I'm interested in.
Every time I turn around, this s(tuff) gets more complicated.
DRG