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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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Answered: NEC ECC: Under an Option C contract, does the defined cost of "Equipment" include costs associated with repair and maintenance?

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These are potentially covered under Equipment 25 of SCC (NEC3 & NEC4 ECC) as "Payments for the purchase price of Equipment which is consumed." However, as with all Defined Costs "only if it is incurred in order to Provide the Works."

So, if say it had been a year since the Equipment last service and half the time it had been on another contract, then unless the repair can specifically be linked back to something incurred on the current contract, 50% of the cost of repair would be reimbursable.

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