What is time and materials not to exceed in contract language?

Time and Materials Not to Exceed Basis means that the Contractor shall be compensated for Work actually performed on an Hourly Basis, and, if specified in a Work Order, compensated separately for Expenses, but not in total to exceed the “Total Amount Encumbered to Date” for that Work Order, regardless of the final

What is the hourly rate not to exceed?

Hourly Not to Exceed In this arrangement, a professional services firm charges the client based on the actual hours worked but sets a maximum limit on the total cost. Essentially, the firm bills by the hourly rate, but the total charges will not exceed a predefined cap.

What is the T&M not to exceed clause?

Time and materials not to exceed clause: This clause covers the costs of the entire project, rather than just labor. This helps the client know what they will spend at a maximum.

What is the cost not to exceed in a contract?

Not to Exceed (NTE) refers to a cap on the time and materials stipulated in the contract. It can also mean the maximum amount the contractor agrees to offer for a project. With a not to exceed, there's an estimated cost the potential contractor offers a firm while negotiating a service contract.

How do you write a not to exceed contract?

The projected Not-to-Exceed value for the initial term of this Contract is [$$$], subject to any amendments made pursuant to the terms of this Contract. Not to Exceed. The total projected deliverable costs for the full five-year term of this Contract is $ .

What is an example of a not to exceed clause?

[ . . .] Compensation to be paid hereunder shall not exceed Six Hundred Seventy-Three Thousand Dollars and No Cents ($673,000.00) (“Not- to-Exceed Amount”) unless a larger amount is agreed to by and between the Parties in ance with the amendment requirements of this Agreement.

Who determines when to use a not to exceed?

A Not to Exceed (NTE) clause is a finite number agreed upon by the owner and contractor for all materials and time in the contract. The owner usually asks for an NTE clause in a contract so they can understand the total risk before greenlighting a project.

A Guaranteed Maximum Price (also known as GMP, Not-To-Exceed Price, NTE, or NTX) contract is a cost- type contract where the contractor is compensated for actual costs incurred plus a fixed fee subject to a ceiling price.

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