Common use of Initial Not-to-Exceed Amount Clause in Contracts

Initial Not-to-Exceed Amount. Unless and until the GMP Amendment is executed and approved by the Council for the District of Columbia, this Agreement shall have an initial not-to-exceed amount as set forth in the Project Information Section of this Agreement (the “Initial NTE”). In no event shall the Contractor be entitled to recover more than the Initial NTE unless the Contractor is authorized to exceed the Initial NTE by the Department in advance and in writing. Prior to expending or committing any portion of the Initial NTE, the Contractor shall obtain the Department’s written approval of such expenditure or commitment, as well as a determination as to whether the work will qualify as a “capital” expense under the Department’s financial guidelines. In making such a request, the Contractor shall submit an itemized breakdown of the work that the Contractor seeks to release using funds from the Initial NTE as well as the associated costs of such work.

Initial Not-to-Exceed Amount. Unless and until the GMP Amendment is executed and approved by the Council for the District of Columbia, this Agreement shall have an initial not-to-exceed amount as set forth in the Project Information Section of this Agreement (the “Initial NTE”). In no event shall the Contractor Construction Manager be entitled to recover more than the Initial NTE unless the Contractor Construction Manager is authorized to exceed the Initial NTE by the Department in advance and in writing. Prior to expending or committing any portion of the Initial NTE, the Contractor Construction Manager shall obtain the Department’s written approval of such expenditure or commitment, as well as a determination as to whether the work will qualify as a “capital” expense under the Department’s financial guidelines. In making such a request, the Contractor Construction Manager shall submit an itemized breakdown of the work that the Contractor Construction Manager seeks to release using funds from the Initial NTE as well as the associated costs of such work.