8. Include performance incentives in the contract

Show this page in the menu

While there is a substantial focus on SPP during the preparation and selection stages, implementation and monitoring of the contract after it has been awarded are often overlooked. It is important to give due consideration to these issues well in advance. It is a relatively simple matter to include certain performance incentives in the contract. These incentives encourage the contractor to implement the contract in as sustainable a way as possible. 

Assess the feasibility of including incentives in the contract's provisions that will make implementation more sustainable throughout the term of the contract.

The contract's provisions may relate to issues such as pricing, liability and risk distribution, as well as to sustainability. This might involve a bonus or penalty linked to improved sustainability (e.g. energy conservation) throughout the period of implementation or service. Such conditions are mainly useful in cases where there is a sufficiently long contract period.