The table below shows a cost-plus-incentive contract. Below are some of the terms and condition of the contract. The total project costs must not exceed R80 million. In the event of this transpiring, the contractor is liable to paying the additional costs. If the contractor spends exactly R80 million, an incentive of R3 million is given to the contractor. Should the contractor meets the target of R60 million, they are entitles to a reward R8 million.