What does a not to exceed contract mean?
Guaranteed Maximum Price
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. Savings resulting from cost underruns are returned to the owner.
What does it mean not to exceed?
Not to Exceed or “NTE” means the maximum amount for which Contractor has agreed to provide services in connection with a Project or LOA.
What is a limitation clause in contract law?
by Practical Law Construction. An overall limit of liability for use in a collateral warranty, professional appointment, building contract or engineering contract. A party may refer to this clause as a “cap on liability” or a “financial cap”.
What is liability clause simple words?
A limitation of liability clause (sometimes referred to simply as a liability clause) is the section in a contracted agreement that specifies the damages that one party will be obligated to provide to the other under terms and conditions stipulated in the contract.
Is not to exceed the same as lump sum?
Likewise, under a lump sum method, the actual contract (or amendment) should not show specific hours and hourly rates for particular tasks. Under the not-to-exceed method of payment, the public agency agrees to pay the consultant for the actual hours worked to perform the scope of work, up to a maximum amount.
What does exceed mean law?
to go beyond what is allowed or to go beyond a set limit. “The President had exceeded his constitutional powers.”
What is opposite of exceed?
Opposite of to exceed or cross a given limit. fall short of. subceed. stop short of. fail to reach.
What can never be excluded by way of a contract clause?
An exclusion clause can never exclude remedies for: death or personal injury; breach of statutory implied terms in consumer contracts.
What are limitation provisions?
A limitation clause is a part of a contract which limits a person or corporation’s liability. A contract will outline the actions that parties are responsible for after they reach a proper agreement. A limitation clause applies when a party does not complete their actions as promised in the contract.
Can you contract out of liability?
Different jurisdictions have different approaches to contracting out of the scheme. New South Wales[2][3], Tasmania and Western Australia expressly allow contracting out of proportionate liability). Conversely, the Queensland scheme expressly prohibits contracting out of proportionate liability[4].
What is contract liability clause?
A limitation of liability clause stipulates that a party will be obligated to pay to the other in such an event under the terms of an agreement. This clause limits the amount as well as the types of damages a party can recover from the other.
What is the not to exceed amount in a contract?
Not to Exceed Amount. The Agreement amount is considered to be a Not-to-Exceed amount, which amount shall be the maximum amount payable and shall not be exceeded unless adjusted by a Supplemental Agreement. Draft contracts faster by searching through millions of contracts from the best law firms across all industries. Not to Exceed Amount.
What does it mean not to exceed price?
Not-to-Exceed Price means the maximum amount payable to the Contractor for the performance of the Work under a Time -and- Materials ( T&M) Contract. This term is not relevant for contracts that are not Time-and-Materials (T&M) Contracts.
What does the ” not to exceed ” clause mean?
“Not to exceed” could be a limit on the government’s authority to buy, or it could be a limit on the contractor’s entitlement to payment, or it could be both. We’ll need more information from you in order to be able to say more, except this: If the government specified and ordered the service, received the service,…
Is the not to exceed amount fixed or firm?
Not to Exceed Amount . For Provider’s obligations hereunder to be compensated in accordance with a pricing structure subject to a not-to-exceed amount, Company shall pay Provider subject to such not-to-exceed amount (“Not-to-Exceed Amount”). The Not-to-Exceed Amount shall be firm and fixed.