Incentive Compensation Layer Clause Samples
The Incentive Compensation Layer clause establishes a framework for providing additional compensation to individuals or entities based on the achievement of specific performance targets or milestones. Typically, this clause outlines the criteria for earning incentive payments, such as meeting sales goals, project deliverables, or other measurable objectives, and details the calculation and timing of such payments. Its core practical function is to motivate and reward desired behaviors or outcomes, aligning the interests of the parties and driving performance toward agreed-upon goals.
Incentive Compensation Layer. The ICL and the ICL Percentages of the Risk/Reward Team members will be set forth in Exhibit G, as amended. The ICL can be modified by Change Order and may be disbursed, if earned, during the Construction Phase based on the Milestone distributions also set forth in Exhibit G and subject to the provisions set forth in Article 9. Prime Consultant and General Contractor will each be responsible for paying their own respective Risk/Reward Team members their respective portion of any distributed ICL.
Incentive Compensation Layer. The PMT will set the Incentive Compensation Layer and the ICL Distribution Percentage pursuant to Section 9.
Incentive Compensation Layer. At the conclusion of the Conceptualization Phase, and at the same time the Project Objective is validated, the Parties will set the Incentive Compensation Layer and the ICL Distribution Percentages, recording them in Exhibit B. The ICL is an amount agreed by the Parties, but is normally based on the amount of Architect’s and Contractor’s usual profit (all or a portion) that is not included in their respective Allowable Costs. The ICL is at risk if the VTC is exceeded, the VTS is exceeded, and/or the Quality Adjustment is negative, but may also be increased, depending upon Project success, as described below.