Incentive Plans: Design & Application Considerations
Publication No
RS5-2
Type
Research & Development Product
Publication Date
Nov 01, 1988
Pages
18
Research Team
RT-005
DOCUMENT DETAILS
Abstract
Key Findings
Filters & Tags
Abstract
Key Findings
Incentive plans demand more precise definition of project objectives by owners, which may in turn result in better design definition. There must be a balance between quantitative and qualitative measures and parameters used in the design of incentive plans. (RS5-2, p. 6)
Survey results strongly suggest that properly designed and administered incentive plans will yield total project benefits to the owner greater than the program’s cost. Positive incentive clauses enhance project performance, while negative incentives hamper performance. (RS5-2, p. 11)
Filters & Tags
Knowledge Area
Project Phase
Project Function
Industry Group
Research Topic
Contracts
Keywords
Fixed-cost contract,
Cost-reimbursable contract,
Contract clauses,
Allocation of risk,
Incentive plans,
Work scope definition clause,
Change clause,
Project control clause,
Cost effectiveness,
Indemnity,
Consequential damages,
Differing conditions,
Delay
Sign In
Don't have an account? Click here to register for one!
Ready to Become a member?