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

Dusting and cleaning of shelves - library management, Dusting and Cleaning ...

Dusting and Cleaning of Shelves: These are important and indispensable routines of libraries which have to be  attended meticulously. Books have to be protected from dust and

Strategy-implementing and strategy-making value, S t rategy-Implementing ...

S t rategy-Implementing and strategy-making value The CoP gives value through the ability to develop the new strategies as well as implement the existing ones. The CoP, on th

Reprography unit in library building-library management, Reprography unit i...

Reprography unit in library building-library management With the advent of cheap and efficient photocopying machines, provision of photocopy service has become a must in most

Universe of subjects, Library service is, in essence, the retrieval and dis...

Library service is, in essence, the retrieval and dissemination of embodied knowledge to individual members and groups in a community. Hence, the two essential parameters which aff

Species of classification - library management, Species of Classification: ...

Species of Classification: There are broadly speaking two species of classification systems - enumerative and faceted. Enumerative classification is that in which all classes

Cost benefit analysis with investment appraisal, QUESTION a) Define cos...

QUESTION a) Define cost benefit analysis as used to appraise large public sector investments b) Compare and contrast cost benefit analysis with investment appraisal c) Ex

Define learning, QUESTION (A) Define learning (B) Playing on a backy...

QUESTION (A) Define learning (B) Playing on a backyard one day, three-year-old Albert is on a swing when a rabbit suddenly appears out of the bushes and startles him. He sli

Catalogue as a search tool, Catalogue as a Search Tool   Remember that ...

Catalogue as a Search Tool   Remember that not often can we recollect all particulars of a document like author, title, subject, series, etc., when we search for it. Further, w

How an offer differ from an invitation to treat, Your Responsible Officer h...

Your Responsible Officer has heard that materials will often be bought more cheaply at auction or tender than from wholesalers. He has also heard much about invitation to treat and

Catalogue entry, Catalogue Entry   In the case of a library catalogue y...

Catalogue Entry   In the case of a library catalogue you are providing information about a document that exists in the library. This means you are preparing an entry for the do

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