Additional Costs above Funding Clause Samples
The "Additional Costs Above Funding" clause defines how expenses that exceed the initially agreed-upon funding amount will be handled in a contract. Typically, this clause specifies whether the party receiving funds is responsible for covering any extra costs, or if additional approval and funding must be sought from the funding party before incurring such expenses. For example, if a project runs over budget, this clause clarifies whether the contractor must absorb the overage or if the client will provide more funds. Its core function is to allocate financial responsibility for unforeseen or excess costs, thereby preventing disputes and ensuring both parties understand their obligations if the project exceeds its budget.
Additional Costs above Funding. Any amount in excess of the amount of the Funding that may be necessary to cover the cost of the Project as set forth in the most recently approved Project Financing Plan and Budget shall be the responsibility of the Applicant and shall not be covered by the Funding. The Applicant shall, as a minimum, provide the level and sources of funding as indicated in the Project Documents, and shall expend those funds in accordance with the Project Financing Plan and Budget.