5b Link with Non-Cost Performance-Pool

This model is supported by a separate pool established by the Owner to incentivise the NOPs' performance against non-cost KRAs. This should only be used where the Owner requires the NOPs to achieve exceptional performance (i.e. performance that exceeds minimum conditions of satisfaction - MCOS) in those KRAs to deliver extra value to the government.

The Owner could be faced with funding exceptional performance against non-cost KRAs even though the project is over budget.

Generally, there is no impact on the NOPs' painshare unless the NOPs fail to achieve MCOS in the relevant non‐cost KRAs.

Refer to 'Alternative 1' in the Risk or Reward Regime set out in the Model PAA.