Contract Ceiling
/ˈkɒn.trækt ˈsiː.lɪŋ/
Definitions
- (n.) A contractual provision that sets a maximum aggregate amount payable under the contract.
The contract ceiling limited the total reimbursement to $500,000.
Related terms
See also
Commentary
The contract ceiling caps the contractor's payment and is crucial in cost-reimbursement contracts to limit fiscal exposure.
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