Common use of Estimated Costs and Payment Terms Clause in Contracts

Estimated Costs and Payment Terms. 4.1 The Company’s estimated cost for completion of the Company Work is specified in Exhibit A (the “Estimated Cost”). The Estimated Cost constitutes the Company’s good faith estimate of the cost to complete the Company Work pursuant to this Agreement. The actual costs to be paid by the Customer will be the actual costs incurred by the Company, which may vary from the Estimated Cost, as described in Sections 4.3 and 4.4 below. Any costs for the Company Work in excess of the Estimated Cost are “Additional Costs.” Typically, the Company requires the Customer to provide payment security such as a letter of credit to guaranty the Company receives payment for the work that Company will undertake. In this instance, Customer has agreed to provide an Initial Prepayment, as described below, and Customer will not be required to submit security such as a letter of credit.