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   <concept id="id201I90A0MOM"
            audience="GSAR"
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            class="- topic/topic concept/concept ">
      <title xtrc="GSAR" xtrf="GSAR" class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">536.7105-5</ph> Shared
Savings Incentive.</title>
      <conbody class="- topic/body  concept/conbody ">
         <ol class="- topic/ol ">
            <li class="- topic/li ">
               <p id="id201I9070VYB" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(a)</ph>
                  
                  
                  
                  
                   General.
The incentive is a shared portion of the difference between the
final GMP and the final cost of performance. Cost reductions may
be realized by the construction contractor as a result of innovations
and efficiencies during the construction phase, such as increased
labor productivity or strong material subcontract negotiations.</p>
            </li>
            <li class="- topic/li ">
               <p id="id201I90790RM" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(b)</ph>
                  
                  
                  
                  
                   Share
Ratio.</p>
               <ol class="- topic/ol ">
                  <li class="- topic/li ">
                     <p id="id201I90A0CRN" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>
                        
                        
                        
                        
                         Except
as provided in paragraph (2) of this subsection, the share ratio
for the construction contractor shall range from 30 percent to 50
percent. The share ratio for the construction contractor shall not
exceed 50 percent. The complexity of the project and the amount
of risk to the construction contractor should be considered when
determining the ratio. A project with greater risk to the construction
contractor should reflect a greater share ratio for the construction
contractor.</p>
                  </li>
                  <li class="- topic/li ">
                     <p id="id201I90A0EBA" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>
                        
                        
                        
                        
                         Subject
to the approval of the HCA, the share ratio may be different than
that required under paragraph (b)(1) of this subsection. Any such
written approval shall be documented in the contract file.</p>
                  </li>
               </ol>
            </li>
            <li class="- topic/li ">
               <p id="id201I907A01S" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(c)</ph>
                  
                  
                  
                  
                   Incentive
Calculation. The incentive amount is calculated in accordance with
the clause at <xref href="GSAM-552.236-79.dita#id201IB0340VZ"
                        base="id201IB0340VZ"
                        outputclass="fm:ParaNumOnly"
                        class="- topic/xref ">552.236-79</xref> Construction-Manager-As-Constructor.</p>
            </li>
         </ol>
      </conbody>
   </concept>
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