Define: Not to Exceed or NTE
Not to Exceed or NTE means the maximum agreed amount a contractor will provide services for under a [specified project or agreement]
Legal accuracy standard set & glossary spot-checked by Imad Mohammed Nazar , Skadden-trained M&A lawyer, Legal Engineer at GenieAI
Not to Exceed or NTE means the maximum agreed amount a contractor will provide services for under a [specified project or agreement].
Relevant Circumstances
- When a contractor's fees are capped at a maximum agreed figure
- If costs above the NTE require change orders or further approval
- Where budget control depends on enforcing the NTE ceiling