Non-Recoverable Costs Sample Clauses
The Non-Recoverable Costs clause defines which expenses incurred by a party cannot be claimed for reimbursement under the contract. Typically, this clause lists specific types of costs—such as overhead, sunk costs, or certain administrative fees—that are excluded from recovery, even if the contract is terminated early or a change order is issued. Its core practical function is to allocate financial risk by clarifying which costs remain the responsibility of each party, thereby preventing disputes over unexpected or ambiguous claims for compensation.
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Non-Recoverable Costs. The following costs are explicitly not recoverable as Operating Costs:
(a) bonuses and expenditure incurred by the Contractor in carrying out any obligation to fund social projects as defined in Clause 2 of the Contract;
(b) interest incurred under loans taken to finance Petroleum Operations from either inter-Affiliate loans or loans from third parties; and
(c) costs incurred in excess of five percent (5%) above costs budgeted for in a Work Program and Budget, unless such costs are approved in advance by the National Petroleum Agency.
Non-Recoverable Costs. The parties agree that the City will have no liability for the following items and the Contractor agrees it shall make no claim for the following items:
44.7.3.1. Profit, or loss of anticipated or unanticipated profit;
44.7.3.2. Consequential damages, including but not limited to interest on monies in dispute, including interest which is paid on such monies, loss of bonding capacity, bidding opportunities, or interest in investment, or any resulting insolvency;
44.7.3.3. Indirect costs or expenses of any nature;
44.7.3.4. Direct or indirect costs attributable to performance of Work where the Contractor, because of situations or conditions within its control, has not progressed the Work in a satisfactory manner; and
44.7.3.5. Attorneys’ fees and dispute and claims preparation expenses.
Non-Recoverable Costs. The parties agree that the City will have no liability for the following items and the Contractor agrees it shall make no claim for the following items:
Non-Recoverable Costs. Unless otherwise provided elsewhere in the Contract, the following list of items shall be treated as non-recoverable costs for the purpose of cost recovery:
Non-Recoverable Costs. Costs that are not recoverable as Petroleum Operations Costs shall include the following:
(a) signature bonus paid by the Contractor;
(b) any Discovery bonus paid by the Contractor;
(c) any Production bonus paid by the Contractor;
(d) annual surface rentals paid to the State;
(e) interests on loans as provided by Article 2.7 of this Accounting Procedure;
(f) any unapproved over-expenditures that exceed the limits of Article 4.4 of this Contract;
(g) any payments made to the State for failure to fulfill the minimum Exploration work obligations pursuant to Article 3 of the Contract;
(h) any fines and sanctions incurred for infringing the laws and regulations of Equatorial Guinea;
(i) any donation to the State or other similar expenses unless otherwise agreed;
(j) the State’s audit and inspection expenses incurred as a result of the absence of original documents in the Contractor’s offices in Equatorial Guinea;
(k) any sanction imposed on the Contractor under the Hydrocarbons Law or otherwise; and
(l) costs related to the assignment from the Contractor to any of its Affiliates or other Persons.
Non-Recoverable Costs. The parties agree that the City will have no liability for the following items and the Contractor agrees it shall make no claim for the following items:
11.9.1.1. Profit, or loss of anticipated or unanticipated profit, except as provided in Article 11.7.1.9;
11.9.1.2. Consequential damages, including, but not limited to, construction or bridge loans or interest paid on such loans, loss of bonding capacity, bidding opportunities, or interest in investment, or any resulting insolvency;
11.9.1.3. Indirect costs or expenses of any nature except those included in Article 11.7.1;
11.9.1.4. Direct or indirect costs attributable to performance of Work where the Contractor, because of situations or conditions within its control, has not progressed the Work in a satisfactory manner; and
11.9.1.5. Attorneys’ fees and dispute and claims preparation expenses.
Non-Recoverable Costs. The following list of items shall be treated as non-recoverable costs for the purpose of cost recovery:
10.1 Except for the period when SOC is Operator, costs incurred as a result of any proven Gross Negligence or Wilful Misconduct of Contractor/Operator including any amount paid in settlement of any claim alleging Gross Negligence or Wilful Misconduct whether or not Gross Negligence or Wilful Misconduct is admitted or whether such sum is stated to be paid on an ex-gratia or similar basis;
10.2 Any expenditure incurred directly or indirectly in connection with the raising of money to finance Petroleum Operations and other incidental costs and charges related thereto by whatever method raised; such expenditure includes, but is not limited to, interest, commissions, fees and brokerage;
10.3 Any costs, charges or expenses including donations relating to public relations or enhancement of Contractor’s corporate image and interests, unless expressly approved by the JMC and endorsed by the SOC;
10.4 Any expenditure incurred which is not related to Petroleum Operations or on matters or activities beyond the Delivery Point(s);
10.5 Corporate income tax;
10.6 Training, Technology and Scholarship Fund.
Non-Recoverable Costs. Unless otherwise provided elsewhere in the Contract, the following list of items shall be treated as non-recoverable costs for the purpose of cost recovery:
10.1 Costs incurred as a result of any proven Gross Negligence or Willful Misconduct of Contractor and Operator including any amount paid in settlement of any claim alleging Gross Negligence or Willful Misconduct whether or not Gross Negligence or Willful Misconduct is admitted or whether such sum is stated to be paid on an ex-gratia or similar basis;
10.2 Replacement and/or repair costs in respect of assets or other property which is uninsured or under-insured, and liability incurred to third parties on the basis of strict liability, where Contractor and Operator has agreed with NOC to insure against such loss and has failed to do so;
10.3 Any expenditure incurred directly or indirectly in connection with the raising of money to finance Petroleum Operations and other incidental costs and charges related thereto by whatever method raised; such expenditure includes, but is not limited to, interest, commissions, fees and brokerage;
10.4 Any costs, charges or expenses including donations relating to public relations or enhancement of Contractor’s corporate image and interests;
10.5 Any expenditure incurred which is not related to Petroleum Operations or on matters or activities beyond the Delivery Point(s);
10.6 Corporate income tax;
10.7 Training, Technology and Scholarship Fund;
10.8 Signature bonus;
10.9 Payments to NOC under Article 23.4; and
10.10 Any other expenditure which is stated elsewhere in the Contract to be a non-recoverable expenditure.
Non-Recoverable Costs a. Delete “109-05D.1.h” and Substitute “109-05D.1.i”.
b. Delete “109-05D.1.i” and Substitute “109-05D.1.j”.
Non-Recoverable Costs. In no event shall the City be liable for costs incurred by Contractor or any of its subcontractors after the termination date specified by the SFMTA, except for those costs specifically enumerated and described in Section 8.1.3. Such non-recoverable costs include, but are not limited to, anticipated profits on the Work under this Agreement, post-termination employee salaries, post-termination administrative expenses, post- termination overhead or unabsorbed overhead, attorneys’ fees or other costs relating to the prosecution of a claim or lawsuit, prejudgment interest, or any other expense which is not reasonable or authorized under Section 8.1.3.