The inspection clause for cost reimbursement contracts allows the contractor to do what?

In cost reimbursement contracts, the inspection clause generally permits the contractor to charge the cost of rework to the government. This is because, under such contracts, the contractor is reimbursed for allowable costs incurred while performing the contract work. When the work does not meet the required standards, necessitating rework, those additional costs can be claimed as reimbursable expenses. The rationale behind this is that the government assumes the financial risk of the contract performance; hence, any necessary rework that arises from fulfilling the contract’s requirements can typically be charged back to the government, ensuring that the contractor is not financially disadvantaged due to quality issues that they are rectifying as part of fulfilling the statute.

This provision encourages accountability while also protecting the contractor from potential losses associated with necessary corrections or modifications to their work.