I.  Incentives for under-performance

Activity

Description of risk

Risk borne by Contractor

Risk borne by Authority

Comments/Actions to be taken to minimise risk

I. Incentives for under-performance

Performance below adequate standard

 reduced unitary charge due to availability or performance deductions

 

 payment and performance mechanism provides appropriate and deterrent deductions (and incentives)

 potential for termination if thresholds exceeded