Common use of Contingency Sharing Payment Clause in Contracts

Contingency Sharing Payment. On the Final Completion Date, Contractor shall pay to Owner an amount equal to the Contingency Sharing Payment and deliver to Owner a statement calculating such Contingency Sharing Payment in reasonable detail. Owner may arrange for the audit, at Owner’s expense by a third-party auditing firm reasonably acceptable to Contractor, of the Actual Fixed Costs and other items that are included in the calculation of the Contingency Sharing Payment to determine the accuracy of the Contingency Sharing Payment. The Contractor shall provide the Owner with a monthly non-binding estimate of the contingency balance based on fixed costs of the Facility incurred at the time. “Contingency Sharing Payment” is that amount which is equal to the lesser of (i) *% of $* or (ii) *% of the amount, if any, by which (A) the Fixed Component ($*), adjusted for Changes, minus profit ($*), adjusted for Changes, exceeds (B) the Actual Fixed Costs. “Actual Fixed Costs” is an amount equal to the sum (without duplication of amounts) of (1) all amounts paid by Contractor in order to achieve Final Completion plus (2) all amounts incurred in respect of the Work by Contractor for administrative costs and home office overhead of its Affiliates, plus (3) all liquidated damages and other amounts paid by Contractor to Owner hereunder, warranty payments, amounts paid by Contractor under indemnities hereunder; provided, however, that there shall be excluded from Actual Fixed Costs all Reimbursable Costs and costs that are otherwise reimbursed under this Agreement (such as Force Majeure costs, but not including costs incurred under Change Orders), costs that are recovered from the proceeds of insurance or payments from third parties including Subcontractors, Contractor’s income Taxes or corporate franchise Taxes, or profit of Contractor or its Affiliates. For purposes of determining Actual Fixed Costs, administrative costs and overhead and other similar amounts in respect of costs of Affiliates shall be limited to amounts allocated to construction work by Contractor and its Affiliates uniformly across all of its construction work.