What type of expense is explicitly non-recoverable for the Contractor?

Study for the San Francisco Housing Portal Contractor Agreement Exam. Engage with flashcards and multiple-choice questions, each question has hints and explanations. Prepare for your certification!

Prejudgment interest is considered a non-recoverable expense for the Contractor because it represents interest that accrues on a monetary award between the time of the injury or breach and the final judgment. This type of interest is typically viewed as a compensation for the time value of money, and it is not a direct cost incurred by the Contractor that can be recovered through the contract. Instead, it is a financial penalty imposed on the party at fault for delaying payment of owed amounts.

In contrast, the other options presented do not align with the definition of non-recoverable expenses in a contractual sense. Adequate funeral expenses relate to specific costs associated with burial arrangements, which are usually not part of a contractor's operational costs. Future contractual bonuses are incentives that can be earned by completing contractual obligations successfully, and gains from authorized liquidations refer to profits that arise from selling off assets—both of which are recoverable under the right conditions.

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