1. The subcontract is valued at R8 million. Should the works be completed to the client`s satisfaction at a cost lower than its agreed value, then the subcontractor shall be entitled to a cost-saving incentive of 50% of the savings. On the contrary, should the costs be exceeded, the subcontractor shall be held accountable and pay the full extra costs incurred. Calculate how much Power will get or pay (in incentives) under the following conditions

• The works are finished at a costs of R5 million.

The works are completed at a cost of R10 million