Category Archives: the Why

Why you would consider using a PBC and more importantly when you would not.

International Association of Contract and Commercial Management (IACCM) “Ask the Expert” Presentation

I will be delivering a webinar presentation on Performance Based Contracting (PBC) as part of the International Association of Contract and Commercial Management (IACCM) “Ask the Expert” series this Wednesday 9th May 2018 from 1200 – 1300 Australian Eastern Standard … Continue reading

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Performance Based Contracting (PBC) Book

With the imminent start of 2018 many of us are thinking about our New Years resolutions, including me. One of my resolutions is to have finished a Performance Based Contracting (PBC) book by 1st July 2018. Having already worked for … 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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Performance Based Contracting (PBC) Incentive Regime (Part 1)

“Incentive – a thing that motivates or encourages someone to do something.” Oxford Dictionary There is a lot of debate on the use of incentives in Performance Based Contracts (PBC). Some argue, especially buyers from public sector organisations (e.g. state … Continue reading

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Carrot and Stick (Part 2)

In part 1 of this article we spoke about the 2 types of approaches to incentives; Approach 1 being negative incentives (stick) and Approach 2 being positive incentives (carrot). We also introduced a behaviour called loss aversion which describes how … Continue reading

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Understanding Behavioural Economics

In a previous post I had suggested those interested in Behavioural Economics should have a look at a free online course via http://www.edx.org titled Behavioural Economics in Action from the University of Toronto. While you can do this course at any … Continue reading

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Carrot and Stick (Part 1)

I am currently reading Richard Thaler’s new book, “Misbehaving – The making of Behavioural Economics” which has again brought up an interesting and long running debate on the application of positive incentives (gains or “carrots”) or negative incentives (losses or … Continue reading

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