Excess Development Plan Costs Sample Clauses
The Excess Development Plan Costs clause defines how costs that exceed the agreed-upon budget for a development plan are handled between the parties. Typically, this clause specifies which party is responsible for paying any additional expenses that arise if the actual costs of executing the development plan surpass the initial estimates or approved budget. For example, if unforeseen circumstances cause construction or project costs to rise, the clause will determine whether the developer, the client, or both share the financial burden. Its core function is to allocate financial risk and responsibility for cost overruns, thereby preventing disputes and ensuring clarity in project budgeting.
Excess Development Plan Costs. Unless otherwise agreed by the Parties, neither Party shall be obligated to incur Development Plan costs beyond those amounts provided for in the approved Development Plans. Nonetheless, the Parties may agree that one Party may elect to pay for Development Plan costs in excess of those costs provided for in the respective Development Plan therefor, provided such payment is approved by the JSC subject to the provisions of Section 3.1(d).