Ceiling price

The most a buyer will pay under a contract, even when work is paid by the hour. Work past the ceiling needs a contract amendment.

Also called: Not-to-exceed (NTE), Maximum contract value

Related terms

Time and materials

A contract paid by the hours or days worked at agreed rates, plus costs. Common for IT staffing, support and agile development where the scope will change.

Contract amendment

A formal change to a signed contract, such as more money, more time or new scope. Large changes may require a new competition instead.