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

Business Improvement Strategies, Hi there i need help in case study assignm...

Hi there i need help in case study assignment. Thanks

Show crisis management from a pr perspective, Question 1: Management ne...

Question 1: Management needs help when confronted by sudden crisis. It is required that crises be managed intelligently and forthrightly with the news media, Employees and the

Compensation management, In 2001, a Chennai- based two- wheeler major intro...

In 2001, a Chennai- based two- wheeler major introduced a bonus scheme for its employees. Employees covered under this bonus scheme are evaluated through a three-tier process- (1)

Information services, INFORMATION SERVICES: In the earlier Unit of thi...

INFORMATION SERVICES: In the earlier Unit of this Block (Block 1, Unit 1), you have learnt about the concept and need for information. In this context, it has been emphasised

Drawbacks of central processing, Drawbacks   There are certain drawback...

Drawbacks   There are certain drawbacks and disadvantages also in centralization of processing.  1)  Some libraries may not be able to afford the operational costs involved.

Horizontal and vertical integration strategies, QUESTION 1 (a) Comment ...

QUESTION 1 (a) Comment on the generic competitive strategies as proposed by Porter with the use of suitable examples (b) Briefly elaborate, with relevant examples, your unde

Quadrants can be useful to the ministry of agro-industry, QUESTION Anso...

QUESTION Ansoff's Matrix is described as a very useful tool that can be used in nearly every scenario. Define and describe Ansoff's Matrix. Explain how each of the four Quadran

Identify and explain the eight quality management principles, QUESTION 1 ...

QUESTION 1 By referring to internal factors of enterprise productivity, discuss how you would improve the productivity of the organization where you are working in? QUESTIO

Acquisition through exchange , Acquisition Through Exchange: Acquisiti...

Acquisition Through Exchange: Acquisition through exchange is another mechanism by which Collection Development can take place. Of course, it goes without saying that the libr

Explain the functions of the management, Question 1 How is a cable televis...

Question 1 How is a cable television system organized? Explain Question 2 Discuss the ethical issues in media management Question 3 What are the major design steps of a

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