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

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

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

Aacr 2- 1988 revised - l c descriptive rules, AACR 2- 1988 revised - L C de...

AACR 2- 1988 revised - L C descriptive rules: Anglo-American cataloging rules/ prepared under the direction of the Joint Steering Committee for Revision of AACR, a committee o

Human resources development , HUMAN RESOURCES DEVELOPMENT This Unit d...

HUMAN RESOURCES DEVELOPMENT This Unit deals with Human Resources Development as a positive method to upgrade the employees abilities and capabilities enabling them to work to

Trade discounts - library administration, Trade Discounts: Trade disco...

Trade Discounts: Trade discounts area common feature in book purchases. The discounts may vary according to categories of publications. Normally a 10% discount is admissible o

Basic terminology - library management, BASIC TERMINOLOGY - Library managem...

BASIC TERMINOLOGY - Library management: A term may be defined as a standardised name for a. given entity or concept which is precise. Terminology, in its turn, is defined as a

What do you understand by contract management, QUESTION When a company ...

QUESTION When a company is forming long-term outsourcing relationship with another company, the foundation of the success of the venture is a good contract management (a) Wh

Explain business travel market and the leisure travel market, Question 1: ...

Question 1: National and International economic trends tend to have an influence on the demand for the hospitality industry. Discuss six (6) main measures that the hotel sector

Cutters rules - british museum cataloguing rules, Cutters Rules - british m...

Cutters Rules - british museum cataloguing rules: Cutter, Charles Ammi. Rules for a Dictionary Catalogue. - 4th ed., rewritten. - Washington D .C.: Government Printing Office, 1

Telecommunication technologies, Telecommunication Technologies: Teleco...

Telecommunication Technologies: Telecommunication today involves microprocessors, digitization of information (audio, video and text) and its transmission across communication

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