Category Archives: the Why

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

How to Nudge a Performance Based Contract (PBC) – Part 1

Commercial instruments, especially sophisticated ones such as Performance Based Contracts (PBCs), have the ability to shape the behaviour of both buyer and seller.  While many commercial practitioners see contracts in their simplest form, an explicit and directive agreement between buyer … Continue reading

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Release of Mastering Performance Based Contracts

To My PBC Blog Readers, Having worked and taught PBC to both buyers and sellers for over a decade I regularly get people asking me PBC questions such as; what is a PBC and should I use one?  What are … Continue reading

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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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