Category Archives: Behaviours

Perverse Incentives – Part 2

In the previous article (see Perverse Incentives – Part 1) I discussed why PBC practitioners need to be aware of the potential for perverse incentives in our PBC arrangements.  In this article let’s look at how PBC practitioners, both buyers and … Continue reading

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Perverse Incentives – Part 1

“Common sense is not so common.” Voltaire In a previous article (see Designing Successful Performance Based Contracts) I highlighted three tests for a highly successful Performance Based Contract (PBC).  These were: Does the PBC drives the right behaviour in the … Continue reading

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Revisiting Performance Based Contracts vs. Outcome Based Contracts vs. Relational Contracts

When a man’s suit fits, when the construction is beautiful, when the sewing and fabrics are there… in the end, you’ll look the best in it. John Varvatos, American Designer In a previous article (see Performance Based Contracting vs Outcomes … Continue reading

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Treatment of Safety in a Performance Based Contract

One topic that has constantly come up over the years is how to treat safety in a Performance Based Contract (PBC). In a previous article (see Designing Successful Performance Based Contracts) we described a PBC as having two main parts; … Continue reading

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Process for Developing a Performance Based Contract (PBC)

Many years ago when preparing to teach a 1-day Performance Based Contracting (PBC) workshop it occurred to me that while we had an 8-step process for developing it wasn’t entirely accurate. In fact of the 100+ PBC that I have … Continue reading

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Stretch Goals

“The greater danger for most of us isn’t that our aim is too high and miss it, but that it is too low and we reach it.” Michelangelo In writing the articles on setting performance levels I came across a … Continue reading

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Performance Based Contract vs. Outcomes Based Contract vs. Relational Contract

My colleagues and I, probably like a number of you, have been to a number of presentations recently that have spoken about future of contracting being ‘outcomes’ based contracting. There are also a number of people talking about relational contracting. … Continue reading

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