A "Not to Exceed Amount" clause specifies the maximum payment cap for a contract, ensuring that the total cost does not surpass a predetermined limit regardless of project scope or resource needs. This clause provides financial certainty for both parties by limiting potential expenditures and protecting against unforeseen expenses.
Fees, Invoicing, Payment & Late Fees: WSC will issue invoices for the fees for services performed based on the scope of work in the enclosed proposal (“Fees”). The total fees will not exceed the “Not to Exceed Amount” as described in Exhibit A. The initial invoice will require payment of a retainer of l5% of the Total Estimated Fees per Exhibit A, and will be submitted upon the signing of this Agreement. Monthly invoices will be submitted thereafter. Client payments shall be made no later than 30 days after WSC submits an invoice. All Fees shall be paid in $USD, unless otherwise agreed in writing. Client will pay l.5% of interest per month if payment due dates are not met.
Total Not to Exceed Amount $[**]
Not to Exceed Amount. As to any Advance, the total of the outstanding principal balance under this Agreement and the Note, plus the amount of such Advance, shall in no event at any time exceed Two Million Five Hundred Thousand and 00/100th Dollars ($2,500,000.00) except as approved by the Lender in its sole discretion. In the event that at any time the outstanding principal balance of the Note exceeds the limit imposed by this subsection, within three (3) Business Days after receiving notice from Lender of such violation, Borrower shall cause a payment to be made to Lender in the amount necessary to become in compliance with such limit, except as approved by the Lender in its sole discretion.
If a Statement of Work includes a not-to-exceed amount, Provider will not bill [*****] for any amounts in excess of that not-to-exceed amount, regardless of the actual number of hours worked or the level of effort required. For the avoidance of doubt, Provider must complete the Services and provide the Deliverables specified in such Statement of Work (excluding changes requested by [*****] and agreed to through a Change Request) even if Provider incorrectly estimated the resources or level of effort required to perform such Services or provide such Deliverables.
Total Program Funds for distribution and [* * *] is a not-to-exceed amount, and shall be invoiced as described in Section 5.0 below.
The TIA is subject to negotiation of a definitized agreement with the DOD. Until the agreement is definitized, the maximum funding available under the TIA is capped at $18,600,000, 75% of the not-to-exceed amount.
This Agreement authorizes funding in the not-to-exceed amount as stated below. The total maximum liability of the Buyer under this Agreement for all allowable charges incurred and billable by the Seller shall not exceed the authorized funding.
The Fixed Hourly Labour Rates for Work, including deliverables, on a time and materials basis are listed in the table below, are stated in Canadian dollars, are inclusive of all overheads, mark-ups and fees, and are fixed for the Period of Performance of this SOW (“Price”). [***] liability to Seller for Work, including deliverables, provided under this SOW, excluding Sales Taxes (defined in the Agreement), shall not exceed $[insert not to exceed amount] (“Ceiling Price”) unless otherwise authorized in writing by the [***] Commercial Authority.
A Not to Exceed Amount (NTE) is a financial limit set within a contract, which signifies the maximum amount that one party agrees to pay another party for the provided goods or services. It ensures that the costs do not surpass a predefined limit, offering protection against budget overruns. Adhering to this amount is crucial for the financial management of a project.
You should use a Not to Exceed Amount in situations where:
When writing a Not to Exceed Amount, it is important to follow these steps:
Example clause:
The total aggregate payment to the Contractor for the services rendered under this Agreement shall not exceed the sum of Fifty Thousand Dollars ($50,000.00).
Not to Exceed Amounts are typically found in the following types of contracts:
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
The "Notice and Opportunity to Cure" clause requires a party to inform the other party of any breaches or defects and allows a specified period for the offending party to remedy the issue before further action can be taken. This provision helps mitigate conflicts by facilitating problem resolution and allowing parties to maintain their contractual relationship.
A "Notice of Disposition" clause typically outlines the requirement for a party to inform another party before disposing of assets that could affect the terms of a contract. This clause ensures transparency and allows the non-disposing party to take necessary actions, potentially safeguarding their interests in the contractual agreement.
The Notice Period clause specifies the amount of time that must be given by one party to the other before terminating or making significant changes to an agreement. It ensures all parties have adequate time to prepare for any transitions or adjustments resulting from the termination or modification of the contract.
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