PRODUCTIVE DIRECT LABOR HOURS Clause Samples
The 'Productive Direct Labor Hours' clause defines the specific hours worked by employees that are directly attributable to the production of goods or services under a contract. It typically outlines which labor activities qualify as productive—such as time spent actively assembling products or performing billable project tasks—while excluding non-productive time like breaks, training, or administrative duties. This clause ensures that only relevant labor hours are counted for billing or performance measurement purposes, thereby providing clarity and fairness in labor cost calculations and contract compliance.
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PRODUCTIVE DIRECT LABOR HOURS. For purposes of this contract and the specific services in Section C, the FAA will pay only for productive direct labor hours, which are those hours expended by Contractor personnel in performing work under the scope of this contract. This does not include sick leave, vacation, holidays, jury duty, military leave, or any other kind of administrative leave. "Productive direct labor hours" include hours expended by the Contractor on matters related to contract management and administration only to the extent that such hours are specifically excluded from indirect rates in accordance with the Contractor's usual accounting practices. iC.1 SCOPE iC.2 BACKGROUND