Absorbable Additional Costs Sample Clauses
The Absorbable Additional Costs clause defines which extra expenses incurred during the performance of a contract can be included and covered under the agreement. Typically, this clause outlines specific types of costs—such as minor material overruns, incidental labor, or administrative fees—that the contractor or service provider is permitted to charge to the client, provided they fall within agreed-upon limits or categories. By clearly specifying which additional costs are absorbable, the clause helps prevent disputes over unexpected charges and ensures both parties have a shared understanding of allowable expenses, thereby promoting transparency and budget control.
Absorbable Additional Costs. If the Additional Costs can be absorbed in the Project Budget by modifying or reducing the scope or design of the Project (or avoided by cancelling the Project or any portion thereof), CVTA may, in its sole discretion, elect to (i) authorize VDOT to proceed with such modifications or reductions, (ii) authorize the Additional Costs (or if a combination of (i) and (ii) is feasible, CVTA may elect such combination), or (iii) elect to cancel the Project or a portion thereof; provided, however, in any case, the respective obligations of VDOT and CVTA, as modified by the elected alternative, shall be set forth in an amendment to this Agreement (VDOT and CVTA shall work in good faith to finalize and execute such amendment).