Shared savings. What is left at closeout, split on the contract terms.
The pool moves every time a change is classified. This module shows the projected pool, the owner's share, the contractor's share, and what the open items would do to it either way.
The shared savings, as it renders in the product. Fictional project. Every chart is inline SVG.
The problem this solves.
The shared savings clause decides who keeps the money the job did not spend. It is read once, at closeout, by two parties who have been reading it differently for two years.
Figures are from the fictional project used throughout this site, and are arithmetic rather than an industry claim. Your own numbers are the ones worth knowing, and the calculator below computes them.
What the shared savings clause actually pays out 21 s, no voice over. Nothing loads from YouTube until you press play.All eleven films
Contingency Runway
Unspent contractor contingency is often the largest thing in the pool. This returns the month it empties on your own figures, which tells you how much of it will still be there.
It runs the same functions as the product, in your browser. Nothing you type is sent anywhere or stored.
The projection
Buyout savings to date, plus projected savings on the packages still open, less allowance overruns booked, plus the projected unused contractor contingency. That is the pool. The split percentages, the cap on the contractor's share and any carve outs are read from the baseline, where they were entered from the GMP amendment at setup. The owner's share and the contractor's share are shown side by side.
The projected unused contractor contingency is read from the anticipated final cost module, so the two screens can never disagree.
The sensitivity table
The open, unclassified change orders can land as owner scope, as design gaps, or somewhere in between. Each outcome moves money in two directions at once: owner cost and the pool. The table shows all three outcomes in dollars, and the note under it says what the contractor fund's current drawdown does to the timing. On the fictional project, a design gap classification pushes the fund to zero sooner and makes the next event an owner cost anyway.
Caps and carve outs
Some agreements cap the contractor's share at a fixed amount, a percentage of the GMP, or a percentage of the fee. Some carve out allowance underruns, or owner directed value engineering, from the pool. The baseline records the rule. The projection applies it and shows when the cap binds.
What it is not
The module does not negotiate the closeout and does not decide disputes. It shows what the contract terms, applied to the registers as they stand, produce today, and what they would produce if the open items were decided.
Instead of the spreadsheet
Why owners pick this over the spreadsheet: the split logic, the cap and the carve outs live in one person's head and one hidden formula. When that person leaves, the projection leaves with them. Here the terms are read from the baseline once and applied the same way every month, in the open.
Questions owners ask
What if my contract has no shared savings clause?
Then the module shows the projected unused funds and the buyout position without a split. Many public owners' agreements return all savings to the owner, and the module records that as a 100 to 0 split.
Is the free calculator the same engine?
Yes. The Shared Savings Calculator on the free tools page uses the same function with inputs you type in. The module uses the registers.
When does the pool become real?
At closeout, when buyout is complete, allowances are reconciled and contingency is settled. Until then it is a projection, labeled as one.
Next and previous
Previous module: Anticipated final cost. Next module: Monthly owner report. Or read how the nine fit together.
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