In a Target Estimate building contract (or cost-plus variant), the contractor's entitlement to Reimbursable Costs is subject to an implied term that costs must be reasonably and properly incurred, even where the contract defines Reimbursable Costs as 'direct actual costs'. Without such a term, the building owner would have an open-ended liability amounting to a blank cheque. Where a contract obliges the contractor to provide 'such information as the [principal's] representative may require', this creates an objective standard of reasonable requirement, not a subjective standard of the principal's satisfaction.
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