Firstly, in accordance with item 26 equipment in the schedule of cost components, the cost for transporting equipment to and from the working areas other than for repair and maintenance is paid for unless included in the hire or rental rate. Does this imply that repair and maintenance is not paid for either?
Secondly, how do we differentiate consumable costs from damage repair costs as referenced in item 25 on payments for the purchase price of equipment which is ‘consumed’? There is a significant amount of damage repairs on the project, including site vehicle tyre repairs.
In answer to your first question, yes you are correct. Item 26 of the schedule of cost components says that payment is made for transporting equipment (unless included in the hire rates) to and from the working areas other than for repair and maintenance.
Therefore, the cost of transporting equipment to and from the working areas for repair and maintenance is not paid for and is treated as being in the fee (see clause 52.1). The same applies to the cost of repairs and maintenance. Nowhere in the schedule of cost components states that repairs and maintenance are paid for, and therefore they do not form part of the defined cost and are deemed included in the fee.
As to your second question, materials and other costs required for repairs are also not included in the
schedule of cost components. That includes damage to tyres, which are not consumables as they are not
designed to be consumed. Note the contractor is required to provide insurance for the loss or damage
of equipment, see the second line of the insurance table in clause 84.2. In that case that these costs will
be deducted, see the first bullet of item 7 of the schedule of cost components.