DEFINITION OF REASONABLE COST. (1) A cost is reasonable if, in nature and amount it does not exceed that which would be incurred by an ordinary prudent person in the conduct of a competitive business.
(2) In determining the reasonableness of a particular cost, consideration shall be given to:
(a) whether the cost is of a type generally recognized as normal and necessary for the conduct of the Proponent's business or performance of the Project;
(b) the restraints and requirements by such factors as generally accepted sound business practices, arm's length bargaining, federal, provincial and local laws and regulations, and Agreement terms;
(c) the action that prudent business persons would take in the circumstances, considering their responsibilities to the owners of the business, their employees, customers, the Government and public at large;
(d) significant deviations from the established practices of the Proponent which may unjustifiably increase the Eligible Costs; and
(e) the specifications, delivery schedule and quality requirements of the particular Project as they affect costs.
DEFINITION OF REASONABLE COST. (a) A cost is reasonable if, in nature and amount, it does not exceed that which would be incurred by an ordinary prudent person in the conduct of a competitive business.
(b) In determining the reasonableness of a particular cost, consideration shall be given to:
DEFINITION OF REASONABLE COST. (1) A cost is reasonable if, in nature and amount, it does not exceed that which would be incurred by an ordinary prudent person in the conduct of a competitive business.
(2) In determining the reasonableness of a particular cost, consideration shall be given to:
(a) whether the cost is of a type generally recognized as normal and necessary for the conduct of the Recipient's business or performance of the Project;
(b) the restraints and requirements by such factors as generally accepted sound business practices, arm's length bargaining, federal, provincial and local laws and regulations, and Agreement terms;
(c) the action that prudent business persons would take in the circumstances, considering their responsibilities to the owners of the business, their employees, customers, the Government and public at large;
(d) significant deviations from the established practices of the Recipient which may unjustifiably increase the Eligible Costs of the Project; and
(e) the specifications, delivery schedule and quality requirements of the particular Project as they affect costs.
DEFINITION OF REASONABLE COST. A cost is reasonable if, in nature and amount, it does not exceed that which would be incurred by an ordinary prudent person in the conduct of a competitive business. In determining the reasonableness of a particular cost, consideration shall be given to:
(a) whether the cost is of a type generally recognized as normal and necessary for the conduct of the performance of the Project;
(b) the restraints and requirements by such factors as generally accepted sound business practices, arm’s length bargaining, federal, provincial and local laws and regulations, and Agreement terms;
(c) the action that prudent business persons would take in the circumstances, considering their responsibilities to the owners of the business, their employees, customers, the Government and public at large;
(d) significant deviations from the established practices of the Recipient which may unjustifiably increase the Eligible Costs; and
(e) the specifications, delivery schedule and quality requirements of the particular Project as they affect costs.
