3.1  Principles

The non-cost component of the Risk or Reward Regime for the Project will be applied such that:

(a)  Stretch Performance against the KRAs (i.e. performance which is better than MCOS Performance against the KRAs) will result in a Performance Reward Amount being payable by the Project Owner to the NOPs; and

(b)  Poor Performance against the KRAs (i.e. performance which is worse than MCOS Performance against the KRAs) will result in a Performance Liability Amount being payable by the NOPs to the Project Owner, as modified for performance against the Performance Modifiers.