Task Order NTE Prices Clause Samples
The "Task Order NTE Prices" clause sets a maximum price limit, known as the Not-To-Exceed (NTE) amount, for each task order issued under a contract. In practice, this means that the contractor cannot bill or be paid more than the specified NTE price for the work described in the task order, regardless of actual costs incurred. This clause ensures budgetary control and protects the client from unexpected cost overruns by capping the financial exposure for each discrete task.
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Task Order NTE Prices. Iridium shall establish a NTE Price for each Task Order. Seller agrees to use commercially reasonable efforts to perform the work specified within a Task Order within such NTE Price, however, nothing in this Agreement or in any Task Order shall be deemed to be, or interpreted as, a firm commitment by Seller to complete all efforts within a Task Order at or under the Task Order NTE Price. Iridium will not be obligated to pay Seller any amount in excess of the NTE Price in a Task Order, and Seller shall not be obligated to continue performance if to do so would exceed the NTE Price set forth in a Task Order, unless and until Iridium notifies Seller in writing that the NTE Price has been increased and specifies in the notice a revised NTE Price that shall constitute the NTE Price for performance under the Task Order.