1. Incentive Contracts.
- Author
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Russell, Stephen Hays
- Subjects
- *
CONTRACTS , *CONTRACTORS , *RISK management in business , *REACTION time , *BUSINESS logistics , *ENERGY consumption - Abstract
The article discusses the use of incentive contracts in motivating contractor performance and allocating risk between the buying organization and the contractor. It cites several risk areas in contracting including technical, cost and schedule performance. It notes that technical performance contracts allocate risk by making at least a portion of contractor profit a function of contractor performance in areas such as logistics response time, inventory accuracy or energy efficiency.
- Published
- 2011