Tag Archives: Performance Based Contracting

Perverse Incentive Follow-up

Posted on Sat 27 Apr 2019 by

In earlier articles (see Perverse Incentives – Part 1 and Part 2,  and Unintended and Perverse Outcomes) I discussed the importance of checking the Performance Management Framework (PMF) within your Performance Based Contract (PBC) to watch for perverse incentives.  Those … Continue reading →

Posted in Behavioural Economics, Book, Case Study, Incentives, Nudging, perverse incentives, the How, Uncategorized | Tagged , , , , , , , , , | Leave a comment

Award Term – Part 3

Posted on Sat 13 Apr 2019 by

Having described the both the key elements and operation of an Award Term in the previous 2 posts (see Award Term – Part 1 and Award Term – Part 2), to aid in our understanding I will now look at … Continue reading →

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Award Term – Part 2

Posted on Sat 30 Mar 2019 by

In the earlier post (see Award Term – Part 1) I looked at the key elements of an Award Term.  In this post let’s look at how the buyer determines whether to grant an Award Term to the seller. Award … Continue reading →

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Award Term – Part 1

Posted on Sat 16 Mar 2019 by

Central to the use of Performance Based Contracts (PBC) is the balancing of buyer needs with seller (contract) consequences, referring to the variety of commercial rewards and remedies that apply as part of a PBC and can include contract extension, … Continue reading →

Posted in Contract Consequences, the How | Tagged , , , , , , , | 4 Comments

Comparing Performance Across Cultural Divides

Posted on Sat 09 Feb 2019 by

As part of teaching in the United Kingdom (UK) one of the attendees mentioned a common issue found in Performance Based Contracting (PBC); the wish to compare performance across cultural boundaries.  In this case the attendee mentioned their organisation was … Continue reading →

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Perverse Incentives – Part 2

Posted on Sat 19 Jan 2019 by

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

Posted on Sat 05 Jan 2019 by

“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 →

Posted in Behaviours, Incentives, the What | Tagged , , , , , , , , | 1 Comment