Appendix B - Guidance on Breakdown of Costs required for Changes (based on FsAST acquisition team guidance)

Breakdown of costs - what is required?

1. In many cases the MOD and the contractor have agreed a standard format of breakdown of costs, thereby preventing the need to discuss the issue for each subsequent change. The breakdown may vary for each contract or change but should include the following elements:

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Direct labour
Materials
Sub-contractor work
Specialist Tools
Travel & Subsistence
Overheads
Profit
Cost of Preparing Quotations
Finance Charges
Operating Costs
Capital Costs
Residual Value
Import Duty