Common use of Defined Cost Clause in Contracts

Defined Cost. 3.1 “Defined Cost is the amount paid by the Authority in providing the Service (excluding any tax which the Authority can recover and overheads) for. • people employed by the Authority, • plant and materials, • work subcontracted by the Authority and • equipment. 3.2 The amount for equipment includes amounts paid for hired equipment and an amount for the use of equipment owned by the Authority which is the amount the Authority would have paid if the equipment had been hired”