Target/Ceiling Costs Clause Samples

The Target/Ceiling Costs clause establishes a predetermined financial limit or range for a project or contract, setting either a target cost, a ceiling cost, or both. In practice, this means that the parties agree on a budgeted amount (the target) and a maximum allowable cost (the ceiling), with mechanisms for sharing cost overruns or savings between the parties. This clause is commonly used in cost-reimbursable contracts to incentivize cost control and efficiency, while also protecting the client from excessive expenditures by capping the total amount payable.
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Target/Ceiling Costs. Costs will be referred to as the target cost. All estimates will contain an estimated ceiling cost. The ceiling cost may NOT be exceeded without authorization of the Department. When during the course of service and/or repair job, it becomes apparent that the ceiling costs will be exceeded, the Successful Contractor will immediately inform the Department who approved the estimate, and prepare a new estimate with a revised target cost and new ceiling cost. The revised estimate must be approved prior to incurring costs beyond the previously agreed upon ceiling cost.
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Related to Target/Ceiling Costs

  • Training Costs All costs and expenses incurred by the Contractor in the training of its employees engaged in Petroleum Operations, and such other training as is required by this Agreement.

  • Start-Up Costs The Government of Ontario will provide:

  • Operating Costs Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

  • Justifying Costs In accordance with its own usual accounting and management principles and practices, each Party shall be solely responsible for justifying its costs with respect to the Project towards the Funding Authority. Neither the Coordinator nor any of the other Parties shall be in any way liable or responsible for such justification of costs towards the Funding Authority.

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