Defined Cost
Cost calculated under the relevant NEC cost-component rules, which may involve incurred or forecast resources depending on the assessment.
by Jack Butler-Kettle · About 1 min readShare
Further detail
Read this alongside the NEC Dictionary of Terms.
Defined Cost is a contractual calculation under NEC, not simply every cost appearing in your accounts. The applicable option and cost-component schedule control what is included and how it is assessed. Depending on the assessment, incurred and forecast costs may both be relevant.
Keep the selected schedule, rates and supporting assumptions with the calculation. Our Change valuation and compensation-event quotations service explains the applicable cost components and Fee in a routine NEC assessment.
Sources
- NEC Dictionary of Terms. NEC Contracts.