Non-Compensable Items Sample Clauses

The Non-Compensable Items clause defines specific costs or expenses that will not be reimbursed or paid by one party to another under the contract. Typically, this clause lists items such as indirect costs, overhead, or damages resulting from delays not caused by the other party, making it clear which expenditures are excluded from compensation. Its core function is to allocate financial risk and prevent disputes by clearly outlining which costs are the sole responsibility of each party, thereby ensuring clarity and predictability in contract administration.