What does hourly not to exceed mean?

Both types have an agreement of a contract amount not to be exceeded, but Hourly Not To Exceed is meant to allow the client to be billed on an hourly basis. If the project finishes before the contract amount is reached, the client will be billed based on the total hours worked.

How do you write a not to exceed contract?

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. Not to Exceed Amount.

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.

How does a not to exceed contract work?

Guaranteed Maximum Price Contract 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.

What is a not to exceed?

What is the difference between lump sum and not to exceed?

From a public agency’s payment perspective, lump sum is easier to administer (not having to check detailed invoices showing hours worked), but it may result in a higher payment to the consultant than if a not-to-exceed method is used.

What is not to exceed cost?

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 is a not to exceed fee?

A guaranteed maximum price (also known as GMP, not-to-exceed price, NTE, or NTX) contract is a cost-type contract (also known as an open-book contract) such that the contractor is compensated for actual costs incurred plus a fixed fee, limited to a maximum price.