profit sharing

Definitions

Accounting

  • noun
    (written as profit-sharing)
    an arrangement whereby employees get a share of the profits of the company they work for
  • noun
    (written as profit-sharing)
    the practice of dividing profits among employees

Construction

  • Provisions in special agreements or contracts for construction where the contractor, as an incentive to save money for the owner, is paid, in addition to the final contract sum, some percentage of any net savings he may achieve if he is able to deliver the finished project to the owner's satisfaction at a total cost below a specified limiting amount.
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