Common use of Project Based Pricing Clause in Contracts

Project Based Pricing. Customers may request project-based pricing to accomplish tasks and deliverables that include more complex requirements. Customers shall use maximum hourly rates or project-based pricing, but not both. The project-based pricing is intended to provide predictability and a discount to Customers relative to the maximum hourly rates. Under no circumstances shall a project-based price be permitted to be greater than the hourly rates. Customers who choose to use a project-based pricing model are not exempt from the requirements listed in the Request for Quote Requirement section, and must negotiate all pricing, fees and related expenses associated with the completion of each task and deliverable with the selected Contractor. Project-based pricing should be fully detailed in the Customer SOW.