Common use of Specified Cost Clause in Contracts

Specified Cost. AV shall pay Consultant an amount to be set out in each Task Order for Services performed by Consultant. AV shall have the right to specify in a Task Order that the cost to AV of a requested task not exceed the stated amount. When so specified in the Task Order, Consultant shall not perform Services exceeding the amount specified for the task which may sometimes be referred to as “Effort”. If it becomes apparent during the performance of a task that the cost for completion of the task will exceed the amount limited in the Task Order, Consultant shall advise AV as far in advance as reasonably possible so that consideration may be given to an increase in the amount specified for said task. AV may then, in its sole discretion, do any of the following: (i) Authorize an increase in the amount of the Task Order to allow completion of the task, subject to Consultant’s right to decline; (ii) Request continuation of the task up to the original dollar amount specified, at which time Consultant shall submit to AV any work or materials resulting from the unfinished task; (iii) Request immediate termination of the task, and cause Consultant to submit to AV any work or materials resulting from the unfinished task.