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

L c descriptive rules - british museum cataloguing rules, L C Descriptive R...

L C Descriptive Rules:   Library of Congress. Rules for Descriptive cataloging at the Library of Congress Adopted by the American Library Association. - Washington, D.C.: Libra

Copying equipment -library equipment , Copying Equipment -LIBRARY EQUIPMENT...

Copying Equipment -LIBRARY EQUIPMENT -LIBRARY MANAGEMENT Multiple copies of documents, for various purposes, are often needed in a library. Hence it is  necessary to provide s

Features for the best physical form of library catalogue, FEATURES FOR THE ...

FEATURES FOR THE BEST PHYSICAL FORM OF LIBRARY CATALOGUE: Despite the widespread use of the computer for cataloguing, a great many catalogues in the conventional format, such

Describe the term ‘industrial accident'', Question 1: (a) Describe the ...

Question 1: (a) Describe the term ‘industrial accident'. (b) What are the characteristics of industrial accidents? Question 2: Occupational Injury will be defined as

Collection and storage of documents, Collection and Storage of Documents: ...

Collection and Storage of Documents: From the dawn of civilisation man has recognised the need for collecting and preserving the records of human thought. Books and other grap

Periodical display rack-step type, Step type-Periodical Display Rack-librar...

Step type-Periodical Display Rack-library furniturein in libraray management  In this type the periodicals are displayed stepwise, each step being 5 cm deep and 15 cm high. Le

Discuss the different socio-cultural impacts, Question 1: a) Write sho...

Question 1: a) Write short notes on the following terms to define them: i. An international tourist and a domestic tourist ii. An international excursionis

What are the e-hr strategies, Question 1: What are the e-HR strategies...

Question 1: What are the e-HR strategies and guidelines that organisations need to consider when adopting use of technology to attract talented employees and discuss in det

Evaluate cabinet government under the mauritian system, QUESTION 1 Desc...

QUESTION 1 Describe and evaluate Cabinet Government under the mauritian system QUESTION 2 Explain and assess the Prime Minister's prerogative over the dissolution of Pa

Engineering Risk Management, Total Marks – 40 (Note: The information for t...

Total Marks – 40 (Note: The information for this question is based on the material contained in Hopkins, Andrew (1999) Managing major hazards: the lessons of the Moura Mine Disast

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