Payment and Allowable Cost Sample Clauses

The Payment and Allowable Cost clause defines how and under what conditions a party will be reimbursed for costs incurred under a contract. It typically outlines which expenses are considered allowable, such as direct labor, materials, and certain overheads, and may require documentation or prior approval for specific costs. This clause ensures that only legitimate, contractually permitted expenses are paid, thereby preventing disputes over payments and clarifying financial responsibilities for both parties.