Common use of Limitation on Overhead and Burden Clause in Contracts

Limitation on Overhead and Burden. In the event the Consultant does not have approved rates, the combined rates for Overhead and Burden will not exceed 100% for home office work, 50% for field offices, and 100% for field inspectors without an office. Further, the Consultant shall have one year in which to obtain Overhead and Burden rates approved by a recognized agency. Failure to do so is an event of default. Consultant's rates may not exceed the lowest of: (a) the current rate determined by TxDOT; (b) the rate determined at a later date by TxDOT; or (c) the rate determined at a later date by an audit acceptable to the Board. The Board has the right to recapture (via offset or refund) the difference between the amount it has actually paid to Consultant and the amount it should have paid under the preceding sentence. Notwithstanding the foregoing, the Board and the Consultant may negotiate lower rates.