What Is Cost of Money?

Cost of money is a rate that is allowed on certain government contracts.

This rate is applied to project costs in addition to the regular provisional rates. Cost of money is sometimes referred to as facilities cost of money or cost of capital. A clause in the contract identifies whether cost of money is valid for your project.

There is generally an overhead cost of money and a G&A cost of money. If cost of money is allowed on your project, select the Apply Cost of Money Rates checkbox at every level of the project. Enter the cost of money rates on the Pool Rates subtask of the Manage Cost Pools screen.