Common use of Expenditures by Manager Clause in Contracts

Expenditures by Manager. (a) After Owner's approval, Manager shall implement the Approved Budget (defined in Section 4.1) and has authority to make the expenditures and incur the obligations provided in the Approved Budget. Manager shall not make, however, without the prior approval of Owner, any expenditure or incur any obligation which, even though included in an Approved Budget, when added to all other expenditures actually made or to be made for the fiscal year covered by such Approved Budget, exceeds the approved budgeted amount in any one budget line item by five percent (5.0%) or more, or exceeds one thousand dollars ($1,000.00), except for utility bills, insurance premiums, real property tax payments and payments to Owner. (b) Manager shall not incur any expenses in any month in excess of the expenses budgeted for such month, subject to the provisions herein regarding emergency repairs or as provided for in Section 2.5. If expenses are likely to exceed budgeted amounts, Manager shall inform Owner of the situation so that Owner may have the opportunity to determine the appropriate action under the circumstances.