Common use of Capital Outlay Clause in Contracts

Capital Outlay. If Contractor purchases capital outlay, such as furniture or equipment, to accomplish the contract project, title will remain with Contractor for the period of the contract. TOA reserves the right to transfer capital outlay items for contract noncompliance during the contract period, or if the items are needed after expiration or termination of the contract. This provision applies to furniture or equipment purchased by Contractor for the performance of the contract, regardless of price or how the item is classified in Contractor's accounting record.