Incentives, Other Management

Assignment Help:

Incentives

These are rewards given when vendor/contractor exceeds your expectation. Incentives should increase contractor?s profit. Incentives can be categorised as:

  • Cost incentive: No incentive for the contractor can be structured. In a contract where design and development are included, a value engineering clause can be incorporated to motivate the contractor to submit a proposal for cost reductions. The contractor gets the opportunity to consider an extra profit for himself while quoting the price reduction.
  • Technical incentive: These are incentives for quality and performance of work. These can also be applied to contracts which include design and development in addition to construction.
  • Schedule incentive: All construction contracts incorporate a Liquidated Damages (LD) clause which refers to penalty for delay in time of completion. Sometimes a Bonus clause for early completion is incorporated. In such a case, the LD clause is called a Penalty clause.

Caution must be exercised while combining cost, technical and schedule incentives in a contract to ensure that different incentives do not counteract or conflict with each other. Also, when more than one contract is awarded, one contractor who is given an incentive for early completion may complete his work early but this will turn out to be a benefit only if you can ensure that the following interfacing contractor can commence his work consistent with the previous contractor?s work completion.


Related Discussions:- Incentives

Methodology for the study of subjects, Until recently, information consolid...

Until recently, information consolidation products (ICP) were prepared by subject specialists themselves on the basis of the documents furnished by libraries and information center

Community relations in reference to public relations, Community relations i...

Community relations in reference to public relations refer to a organization, company, or other entity's relationship with their community. Community relations involve cultivati

Library networks in usa and uk, Library Networks in USA and UK   The Un...

Library Networks in USA and UK   The United States has definitely taken a lead in library networking. Among the prominent agencies in this regard, are the Library of Congress,

Explain what is meant by e-commerce, Question 1: (a) Operations managem...

Question 1: (a) Operations management is an integral part of an organisation. Show how operations management can contribute to the success of an organisation. (b) Differen

Quality improvement, Q uality improvement It is a systematic approach ...

Q uality improvement It is a systematic approach to make the process of work more effective, efficient  and appropriate  by removing  rework,  unwanted work,  loss and frustra

Stock market, assignment on stock market for 10 marks basis

assignment on stock market for 10 marks basis

Describe the levels of consumer decision making while buying, Question 1 E...

Question 1 Explain the components of learning and also classical conditioning theory in brief Question 2 Briefly discuss the decision-making models(any three) Quest

Describe the main components of the macss, Question: a) List and desc...

Question: a) List and describe the main components of the MACSS. b) S.W.I.F.T. monitors the payments traffic of members of the MACSS Closed User Group (CUG) and will dir

Explain e-compensation tools, In most modern organizations, the employment ...

In most modern organizations, the employment relationship has shifted from being life-long with career management provided by the organization into being more short-term with emplo

Explain any five necklines along with illustration, Question 1 Explain the...

Question 1 Explain the steps in drawing the head and the face of male figure with illustration Question 2 Explain basics of drawing legs and feet of a child with illustration

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd