Cost Recovery Fee

Q26: What is the 2% contract levy for?

A26: The 2% contract levy is charged to the Vendor at the completion of the project and is based on the final project cost.  The cost recovery fee covers the contract administration of the Panel.

The cost recovery fee is not a profit making opportunity for the Government.  It will be regularly reviewed to ensure it only covers the cost of operation of the eProjects Panel.

Q27: If a project doesn’t go ahead for some reason, do Vendors still have to pay the 2% contract management levy?

A27: No.  The 2% is charged on the total fee charged by the Vendor at the completion of the project.

Q28: How much will it cost to run the Portal?

A28: A non-profit cost recovery fee has been put in place to cover the cost of running the Panel.  There are strict requirements to ensure this is not a profit exercise for Government.  This value will be reviewed annually to ensure it only covers the cost of running the Panel.