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Contract Savings

on . Posted in Project Management Engineering

Contract savings, abbreviated as CS, is the savings that is divided between the seller and the buyer based on agreed ratio for the cost saved by the seller against the origional estimated cost.

 

Contract Savings Formula
\( CS \;=\; TC - AC   \)
Symbol
\( CS \) = contract savings
\( AC \) = actual cost
\( TC \) = target cost

 

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