Administrative settlement costs refer to the expenses incurred during the defense and resolution of contract claims. These costs can include salaries for contracting officers or authorized representatives, legal fees for attorneys, and payments to members of arbitration or appeals boards. However, it is important to note that administrative or overhead costs are not included in this definition.
This term is commonly used in the context of government contracts and procurement processes. It is relevant in legal practices involving contract law, particularly where disputes arise over contract claims. Users may encounter administrative settlement costs when navigating the claims process, and they can utilize legal templates from resources like US Legal Forms to manage these situations effectively.
Here are a couple of examples of abatement:
Example 1: A state transportation department incurs costs for legal representation while defending against a contractor's claim regarding project delays. These costs are categorized as administrative settlement costs.
Example 2: A city government pays salaries to its contracting officer and legal team while resolving a dispute with a vendor over service delivery issues (hypothetical example).
Administrative settlement costs are defined under Title 23 of the Code of Federal Regulations, specifically 23 CFR 140.503. This regulation outlines the parameters for what constitutes these costs in the context of federal highway administration contracts.
| Term | Definition | Key Differences |
|---|---|---|
| Administrative Costs | General expenses related to the operation of an organization. | Does not specifically relate to contract claims. |
| Settlement Costs | Costs associated with resolving a dispute, including legal fees. | Broader term that may include costs not directly related to administrative processes. |
If you are involved in a contract dispute and administrative settlement costs arise, it is advisable to document all related expenses carefully. Consider using legal templates from US Legal Forms to assist in managing your claims process. If the situation is complex, seeking professional legal assistance may be necessary to ensure your rights are protected.
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They are expenses incurred in the defense and resolution of contract claims, excluding overhead costs.