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NEC ECC: Under an Option C contract, does the defined cost of "Equipment" include costs associated with repair and maintenance?

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The SCC sets out how equipment costs can be claimed depending on how the equipment has been procured, i.e. external hires or internally owned equipment etc.

Are general repair/maintenance costs which are not included in any rates allowed under the Defined Cost submission, for example the "Off-hire" charges associated with a site vehicle which includes replacement part charges etc?
asked Jan 10 in SOCC SSOCC by kgraham (250 points)  

1 Answer

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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.
answered Jan 10 by Jon Broome (54,010 points)