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Section 5— Payment

Clause 53.1

Defined Cost

Purpose

The Contractor keeps records of Defined Cost. The PM may inspect them.

Practical Application

Defined Cost is the basis for CE assessments under Options C, D, and E. Accurate and auditable records are essential.

Common Pitfalls

If records are poor, the PM may assess Defined Cost based on their own estimates, which may be lower.

Related Clauses

Clause 63.3Clause 11.2

⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.