Incentivisation Methodology Sample Clauses

Incentivisation Methodology. The Authority intends to ensure value for money and a continued focus on performance from the Contractor. This Framework Agreement will therefore operate under an incentivisation model whereby a proportion of the Contractor’s total day rates is payable only on the achievement of targets relating to the identified Key Performance Indicators (KPIs) (Table 5). In summary, the incentivisation approach will operate as follows:  Total day rates are included in the Pricing Schedule in paragraph 2.1 above  The Authority has targets to be achieved for a set of KPIs by the end of each 12 month period of the project  Authority withholds 10% of payment at least until the end of the 12 month period (relating to 10% of the total day rates) and pays 90% on a project specific milestone payment basis agreed with the Contractor.  Each KPI is allocated a weighting, as set out in Table 5 below. These weightings represent how the proportion of the day rate which is subject to the incentivisation model (i.e. the 10% of the total day rates) is allocated against each KPI.  If the Contractor achieves the target for all KPIs, they will be paid the remaining 10% payment at the end of the 12 month period (equating to full total day rates being paid).  Where the Contractor achieves a combination of outcomes for the 5 KPIs (i.e. failing to meet all targets) then the weighting, as set out in the table 5 below will be applied to the incentivisation payment in order to establish the appropriate payment for each KPI.  Payments will be rounded up or down to the nearest xxxxx.