Important Comparisons in Incentive-Based Payments Contracts

Description

This Skill Bit explores how incentive-based contracts differ from lump sum and time-and-material contracts in payment structure and risk allocation. By linking payments to performance, these contracts motivate contractors while requiring careful planning and effective risk management to ensure project success. Understanding these distinctions is essential for selecting the right contract type aligned with project goals.

Duration approx. 4 Min.

Tier: proficiency