NTE Amount for Work Orders Clause Samples

The "NTE Amount for Work Orders" clause sets a maximum financial limit, known as the Not-To-Exceed (NTE) amount, for individual work orders under a contract. This means that the contractor cannot bill or be paid for work exceeding this specified cap unless prior written approval is obtained from the client. For example, if a work order has an NTE amount of $10,000, any additional costs must be authorized before proceeding. The core function of this clause is to control costs and prevent budget overruns by ensuring that expenditures on work orders remain within agreed-upon limits.