Section 5: Charges for Materials and SuppliesAnchor: #i1000908
Items of new materials and supplies shall be billed at current stock prices when furnished from the utility’s stocks or at actual cost to the utility delivered to the project site when such materials must be purchased.
Where the utility maintains a “stock record system”, it will be acceptable for material costs to be billed on utility adjustment work using an average of actual unit costs for materials and supplies furnished to the project.
The computation of costs of materials and supplies shall include the deduction of all offered discounts, rebates, allowances, and intercompany profits.
The cost of handling of materials and supplies at storehouses or at material yards, the cost of purchasing (including sales tax), and a reasonable cost of inspection and testing may be included in the computation of prices of materials or supplies, provided these costs are representative of costs incurred and are not included in the development of the utility’s overhead account or other accounts.
The costs of supervision, labor and expenses incurred in the operation and maintenance of the storerooms and material yards, including storage, handling and distribution of materials and supplies, are reimbursable costs.
Materials recovered from temporary use and accepted for re-use by the utility shall be credited to the project at prices charged to the job, less a consideration for loss in service life at 10 percent.