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

Prospectus, This is a document which contains all relevant investor informa...

This is a document which contains all relevant investor information regarding the operations of an organization issuing privacies.

Outline the characteristics of tourism services, QUESTION 1 (a) Describ...

QUESTION 1 (a) Describe the role of public sector in the development of tourism Industry? (b) Describe the role of private sector in the development of tourism Industry?

Identification based trust and calculus based trust, Question 1 Differe...

Question 1 Differentiate between identification based trust and calculus based trust. Question 2 M. Thomas, the Managing Director of a company has recently attended a w

Printed book form - library catalogues, Printed Book Form: The printe...

Printed Book Form: The printed book form of library catalogue is one of its typical forms. These types of library catalogues are prepared conforming to all the standard princi

Newspapers - library management, Newspapers: Newspapers Of all the lib...

Newspapers: Newspapers Of all the library materials, the newspaper is probably the most comprehensive, the easiest, to collect and the most vanishing type of a source. The new

How are newspapers registered? explain in detail, Question 1 How is the pu...

Question 1 How is the public relations industry organized? Question 2 How are newspapers registered? Explain in detail Question 3 Write a long note on the Structure of E

Quantitative methods, statistics are not mainly the records of the past but...

statistics are not mainly the records of the past but they are useful in the planing of the future. Discuss the statement and explain the role of statistics in economic planning.

Classified part - classified catalogue, Classified Part  It is the arr...

Classified Part  It is the arrangement of entries of documents by class number that gives the systematic and structured display of subjects in a classified catalogue. It maps

Disadvantages of the preferred teaching method, QUESTION 1 1. Discuss t...

QUESTION 1 1. Discuss the advantages and disadvantages of the preferred teaching method as revealed by the study 2. What are the implications and issues that teachers have t

Special furniture items-library furniture-library management, Special Furni...

Special Furniture Items-library furniture-library management Besides the above mentioned library furniture, a few other items worth considering are:  Book trolley, whi

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