PROBITY Incentive Clause Samples
The PROBITY Incentive clause establishes a reward or benefit for parties who demonstrate integrity, transparency, and ethical conduct during the execution of a contract or project. In practice, this clause may provide financial bonuses or other advantages to contractors or suppliers who adhere to high standards of probity, such as avoiding conflicts of interest, complying with anti-corruption policies, or promptly disclosing any potential ethical issues. Its core function is to encourage ethical behavior and reduce the risk of misconduct, thereby promoting trust and accountability in contractual relationships.
PROBITY Incentive. 48.1 In performing its obligations under any Contract Document, the Supplier must not, in the State’s reasonable opinion act improperly including:
48.1.1 offer an Incentive to any person involved in the establishment of this Agreement on behalf of the State until the expiry of twelve (12) months from the Commencement Date;
48.1.2 offer an Incentive to any person involved in the procurement of Deliverables to Customers under any Contract Document during the Term;
48.1.3 engage in any practice such as collusion with other potential competitors, secret commission or any other deceptive practice;
48.1.4 submit a Declaration in Relation to Unlawful Collusion which is found to be false in any particular; or
48.1.5 engage in any practice that would give the Supplier an improper advantage over competitors.
48.2 At the Commencement Date, the Supplier warrants that it is not aware of any conflict of interest (or potential conflict of interest) that would preclude it from properly performing its obligations under any Contract Document.
48.3 The Supplier must disclose to the State in writing, all actual and potential conflicts of interest that exist or arise (either for the Supplier or Supplier Personnel) in the course of performing its obligations under any Contract Document as soon as practical after it becomes aware of that conflict.