Following cost component 2 of the schedule of cost components, you can recover as part of defined cost the cost of equipment used within the working areas. To decide the amount of defined cost, it will be necessary to determine who owns the equipment and whether it is hired or purchased.
If you hired the equipment from an external company, cost component 21 will apply. If you own the equipment or hired it from a company that is part of your holding company, then cost component 22 will apply. If you bought the equipment, cost component 23 applies.
Under cost components 21 or 22, the amount recovered as part of defined cost will be the relevant rate multiplied by the time for which the equipment was required. If the minimum hire period is one week, as shown by the hire agreement, this will be the amount of defined cost.