Common use of Cost Limitation Clause in Contracts

Cost Limitation. Owner is precluded by law from obligating funds beyond those which have been specifically secured and authorized for the Project. Contractor acknowledges and accepts that the total of all amounts Owner shall pay the Contractor to complete the Project, including payment for any Change Orders, shall not exceed the Construction Cost Limitation authorized for the Project. The Construction Cost Limitation can only be adjusted by Owner, in writing, with approval of Owner’s Board as required by Owner’s policies of governance. In the performance of all of its duties hereunder, Contractor shall perform the Work so as not to exceed the Construction Cost Limitation. In no event shall Owner’s liability under this Agreement exceed the Construction Cost Limitation.