Common use of Sharing Arrangements Clause in Contracts

Sharing Arrangements. If a VECP is approved by the COUNTY, the Contractor may be entitled to share in both construction savings and collateral savings to the full extent provided for in this subsection. Except for innovative ideas, the Contractor and the County shall each receive 50 percent of net reduction in the cost of performance of this Contract. For innovative ideas, the reduction in the cost of performance shall be shared as follows: ACCRUED NET CONTRACTOR’S COUNTY’S SAVINGS SHARE % SHARE % Less than $25,000 85 15 $25,000 to $50,000 75 25 Over $50,000 50 50 If an approved change is identical or similar to a previously submitted VECP or an idea previously utilized by the County it will not be considered an innovative idea, thus, will only qualify for a 50 percent sharing of savings. When collateral savings occur, the Contractor shall receive 20 percent of the average one year’s net collateral savings. The Contractor shall not receive construction savings or collateral savings on optional Work listed in this Contract until the County exercises its option to obtain that Work.