ICL Increase by Adding Value. If, through Target Value Design, the difference between the Estimated Final Cost and lower of (i) Owner's Budget and (ii) Target Cost is sufficient to cover 125% of the estimated Chargeable Costs of an Added Value Incentive Item and Owner chooses to add the Added Value Incentive Item, then the ICL will be increased by 25% of the estimated Chargeable Cost of the Added Value Incentive Item. Owner's election of any Added Value Incentive Item will be documented by Change Order 9.8.4 ICL Increase for Residual Design/Preconstruction Savings and Target Cost. When the PMT determines to establish the Target Cost, if the Estimated Final Cost (after including Target Value Design reductions and Added Value Incentive Item additions, if any) is less than the Owner's Budget, then the ICL will be increased by 50% of the difference. Target Cost will be set at the Estimated Final Cost.
ICL Increase by Adding Value. The Parties have agreed to use a Value Cost Model. After Validation, Base Target Cost and Incentive Compensation Layer (ICL) are set. If, during the Design/Preconstruction Phase, the projected cost is reduced through innovation and efficiency, then 75% of the savings will be used to purchase additional scope through Added Value Incentive Items and 25% is used to increase the potential ICL. The Base Target Cost is decreased by the amount the ICL is increased. This can occur multiple times. When the Design/Preconstruction Phase is complete, with the design finalized and all key design decisions made, the adjusted Base Target Cost becomes the Final Target Cost.
ICL Increase by Adding Value. If, through Target Value Design, the difference between the Estimated Final Cost and lower of (i) Owner's Budget and (ii) Target Cost is sufficient to cover 125% of the estimated Chargeable Costs of an Added Value Incentive Item and Owner chooses to add the Added Value Incentive Item, then the ICL will be increased by 25% of the estimated Chargeable Cost of the Added Value Incentive Item. Owner's election of any Added Value Incentive Item will be documented by Change Order After completion of the site works (including underground services, grading, footings, etc.), if money remains ("Special Items Savings") in the Risk Register under [insert Items] which total [insert amount] (collectively, the "Special Items") then the Owner may choose to include some of the Added Value Incentive Items (Exhibit B-3) to the Project up to the amount of the Special Items Savings. For those Added Value Items that proceed, the ICL will be increased by 25% of the estimated Chargeable Cost of the Added Value Incentive Item(s).
