Common use of DEFINITION OF REASONABLE COST Clause in Contracts

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. (1) A cost is reasonable if, in nature and amount 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. (1) A cost is reasonable if, in nature and amount 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. (1) A cost is reasonable if, in nature and amount 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 project as they affect costs.