Claims

Claims 5. Allowable costs, provided the costs are properly documented, incurred and requested prior to the end of the 60-day period established Rule 5.3.19.11 of these regulations, include: A. Change orders to the construction contract as a result of settlements, arbitration awards, or court judgements, to the extent that they would have been allowable had there not been a claim. B. The costs of assessing the merits of, negotiating, or defending a claim against the Grant recipient are allowable, regardless of the outcome, provided that the matter under dispute is not the result of fraudulent or illegal actions or mismanagement on the part of the Grant recipient. C. Alterations in engineering, legal, contracts etc. as a result of settlements, arbitration awards, or court judgements are allowable to the same extent that they would have been allowable had there not been a claim. 6. Unallowable costs include the costs of: A. Claims arising from work outside the scope of the Grant. B. Claims resulting from fraudulent or illegal activities. C. Claims resulting from mismanagement by the Grant recipient. D. Claims resulting from the Grant recipient's vicarious liability for the improper action of others. E. Settlements, arbitration awards or court judgements over the allowable costs as established in these regulations.