Contingency and Gainshare is the shape used where the buyer wants the firm's fee on the outcome rather than on the work. The fee is calculated as a defined percentage of verified savings, measured against a documented baseline that is reconstructed at the opening of the engagement. The percentage and the calculation rules are signed at scope letter. The buyer pays only if the engagement closes savings.
The shape exists because some buyer-side engagements carry a clean, defensible savings calculus. An audit response measured against the publisher's opening claim. A renewal cycle measured against the publisher's opening pricing letter. A contract restructure measured against the rolled-forward run-rate of the existing entitlement. Roughly two out of every ten mandates the firm scopes are signed under Contingency.
How the baseline is constructed.
The baseline is reconstructed at engagement open through a baseline memorandum signed by the buyer, the named senior advisor, and the second partner countersigner. For audit work the baseline is the publisher's opening claim in writing. For renewal work the baseline is the publisher's opening pricing letter, the published rate card, or the rolled-forward run-rate of the existing entitlement, whichever the scope letter specifies. For contract restructure the baseline is the carry-forward of the existing contract priced against the buyer's three-year forecast.
What is excluded.
Contingency does not carry an option to re-cut the baseline during the engagement. The baseline is fixed at the baseline memorandum. The firm does not bill against expenses inside the fee. The firm does not run a Contingency engagement where the baseline cannot be defensibly documented in writing, where the savings cannot be independently verified by a third-party reviewer at closing, or where the closing outcome depends on a counterparty position outside the firm's control. Engagements that do not pass those tests are scoped under Fixed Fee instead.
Best-fit engagementsWhere Contingency fits the shape of the work.
Audit response against a documented opening claim
An audit notification has been received and the publisher's opening claim is in writing. The baseline is the opening claim. The closing position is the closing settlement memorandum. The fee is a defined percentage of the differential. Read the full method on
the Audit Defence Programme.
Renewal cycle against an opening pricing letter
A renewal anchor is within the engagement window and the publisher has circulated an opening pricing letter. The baseline is the opening pricing letter. The closing position is the closing signed contract. The fee is a defined percentage of the differential against the three-year run-rate. See
the Renewal Programme.
SAP indirect access settlement
An SAP indirect or digital access claim has been served. The opening claim is documented. The closing settlement, calculated against the closing memorandum, anchors the savings figure. The Contingency engagement runs the response from notification to settlement. See
the SAP practice page.
Shelfware rationalisation against rolled-forward run-rate
A licensing footprint with documented over-deployment of unused entitlement. The baseline is the rolled-forward run-rate of the current contract. The closing position is the renegotiated contract. The fee is a defined percentage of the verified run-rate reduction.
Broadcom and VMware post-acquisition contract restructure
A post-acquisition VCF subscription proposal has been received. The opening proposal is the baseline. The closing contract is the closing position. The fee is a defined percentage of the differential against the three-year run-rate. See
the Broadcom and VMware practice page.
ULA exit at certification
An Oracle ULA is at certification. The baseline is the rolled-forward continuation cost of the ULA's renewal proposal in writing. The closing position is the certified perpetual position and the negotiated replacement support cost. The fee is a defined percentage of the savings against the renewal proposal.
Fee constructionSix mechanics that govern the fee.
Baseline memorandum at engagement open
The baseline is the only number that decides the fee. It is reconstructed in writing at engagement open and signed by the buyer, the named advisor, and the second partner countersigner. The baseline memorandum is filed inside the engagement record and not re-cut during the engagement.
Defined percentage signed at scope letter
The fee is a defined percentage of verified savings, signed in writing at scope letter. The percentage is set against the complexity, the baseline confidence, and the timeline. Typical bands are documented inside the scope letter against the engagement type.
Closing position signed by all three signatories
The closing position is signed by the buyer, the named advisor, and the second partner countersigner. The verified savings figure is the differential between the baseline memorandum and the closing position, calculated under the rules specified in the scope letter.
Independent verification at closing
The verified savings figure is open to independent verification by a third-party reviewer of the buyer's choosing. The firm carries the full engagement record to support verification. The reviewer is appointed by the buyer and reports to the buyer. The firm's fee is invoiced only after verification is complete.
Floor and cap optional
The buyer may elect at scope letter to apply a fee floor, a fee cap, or both, on top of the defined percentage. A floor protects the firm where the baseline reconstruction itself produces savings before negotiation. A cap protects the buyer where closing savings substantially exceed the engagement's planning envelope.
No-fee close where no savings are verified
If the closing position produces no verified savings against the baseline, no fee is invoiced. The engagement still closes with a written baseline reset, a closing memorandum, and the five-year retention obligation on every position paper. The firm carries the engagement record at no charge under that condition.
I.
Baseline signed by three parties
The baseline is the only number that decides the fee. It is reconstructed in writing at engagement open and signed by the buyer, the named advisor, and the second partner countersigner. The baseline memorandum is never re-cut during the engagement.
II.
Closing verification open to third-party review
The verified savings figure is open to independent verification at the buyer's option. The firm carries the engagement record, including every position paper and counter-position, to support a third-party reviewer appointed by the buyer.
III.
No-fee close where no savings
If the closing position produces no verified savings against the baseline, no fee is invoiced. The engagement still closes with a written baseline reset and the five-year retention obligation. The firm carries the record at no charge under that condition.
IV.
Independence at every line
Admodum is not a partner, reseller, or affiliate of any software vendor. No reseller margin, no referral commission, no audit subcontract from any publisher. The Contingency fee is paid by the buyer against verified savings. It is never paid by the publisher.
V.
Named senior advisor signs everything
The named advisor on the scope letter signs every position transmitted on the engagement. The second partner countersigns. No leverage model, no rotation, no anonymous correspondence with the publisher.
VI.
Counsel coordination, never displacement
Where an engagement escalates to a legal threshold, the senior advisor coordinates with the buyer's counsel through to legal close. Admodum remains advisory. Counsel remains the legal lead. The two roles are explicitly distinct in the engagement letter.
