Managing Overspends Clause Samples

The Managing Overspends clause establishes procedures and responsibilities for handling situations where project costs exceed the agreed budget. Typically, this clause outlines the steps parties must take if an overspend is anticipated or occurs, such as notifying the other party, seeking approval for additional expenditures, or implementing cost-control measures. Its core function is to ensure transparency and accountability in financial management, helping to prevent disputes and maintain control over project expenses.

Managing Overspends. 46.5.1 No Individual Scheme is expected to Overspend in terms of the Financial Contributions made to it but in the event that an Overspend is predicted to arise the commissioning Partner should take whatever mitigating action is practicable to minimise the impact of such Overspend on the Financial Contributions to the BCF. 46.5.2 Overspends shall be managed in accordance with Part 2 of Schedule 3. 46.5.3 The risk share agreement at Schedule 3 specifies that for Financial Contributions to Pooled Fund 1a the Council and for Financial Contributions made to Pooled Fund 1b, the CCG, respectively will carry the risk in the event that Overspends arise. 46.5.4 For Pooled Fund 2 Overspend shall be met by the Partners in proportion to actual contributions to the Pooled Fund (reflecting the savings targets of each Partner) as detailed in the risk share agreement (Schedule 3). 46.5.5 Through the risk sharing agreement at Schedule 3, both Partners recognise that there may be significant unanticipated pressures falling on one or other of the Partners. In such cases this will be brought to the attention of the Joint Commissioning Board for a joint solution to be found between the Partners.

Managing Overspends. Spending under Your Home Care Package cannot exceed Your available package funds. If it appears that You are likely to overspend We will work with You to identify necessary changes. This may include:

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