Cost Recovery
/ˈkɒst rɪˌkʌvəri/
Definitions
- (n.) The process by which a party recovers expenses or losses incurred, typically through a legal claim or contractual provision.
The company pursued cost recovery after the contract breach led to unexpected expenses.
- (n.) A contractual or statutory mechanism allowing reimbursement of expenses related to a project or service.
The government agreement included a cost recovery clause to cover administrative fees.
Forms
- cost recovery
- cost recoveries
Related terms
See also
Commentary
Cost recovery provisions are often carefully drafted to specify what expenses qualify and the timing of reimbursement.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.