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

Organizational behaviour, #questionA large unit manufacturing electrical go...

#questionA large unit manufacturing electrical goods which has been known for its liberal personnel policies and fringe benefits is facing the problem of low productivity and high

Technical section -staff activity area of library building, Technical Secti...

Technical Section -Staff Activity Area of library building in library management As mentioned earlier, cataloguing, and classification are the  principal technical activities

Explain a.e.i.o.u model, Question 1 Define conflict. Discuss four ingredie...

Question 1 Define conflict. Discuss four ingredients of conflict Question 2 Discuss four different types of conflicts which may occur in any organization Question 3 List

Quality control tools, Q uality control tools Most of the quality cont...

Q uality control tools Most of the quality control tools are usually available to the project team. The Quality control methods are ways of checking. It may involve the applic

Rural tourism, QUESTION 1 (a) Write short notes on the following terms ...

QUESTION 1 (a) Write short notes on the following terms and provide examples where appropriate? I. Rural tourism II. Urban Tourism III. Ecotourism IV. Culture touri

Psychoanalysis, QUESTION 1 Briefly explain how the following schools of...

QUESTION 1 Briefly explain how the following schools of thought contributed to Psychology (a) Psychoanalysis (b) Behaviourism (c) Cognitive approach (d) Humanistic/

Differences between a credit card and a debit card, Question: a) List ...

Question: a) List and describe the role of the different parties involved in any e-payment system. b) Outline five factors (characteristics) that determine the acceptance

Organizational Behaviour IIBM Institute of Business Manageme, I agree with ...

I agree with post #2 in that, generous benefits and perks have a tendency to increase productivity and decrease absenteeism, not the opposite. So first you would need to look at th

Librarians room in library building in library management, Librarians room ...

Librarians room in library building in library management The librarian normally has a separate room of his own, adjacent to the work room and opposite to the  main counter ar

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