According to the Clause 22 of Schedule of Cost Components, payment for equipment (say backhoe) owned by the Contractor should be at the open market rates.
Assuming the open market rate for a backhoe is X (which includes mark up for overheads and profit of the equipment company). When we assess the interim payments, should we delete the mark up of the equipment company? This is because there is FEE for the contractor. It may be double paid to the Contractor if we do not delete the mark up of the equipment company.