2.4.16 Performance based payments are typically only used to address levels of service performance that do not have a direct impact on the availability of the required services/facilities. Performance based payments are also used for payment of non-essential services, e.g. school bus service for schools PPP project.
2.4.17 When developing performance-based payments, public agencies should decide on:
a) The standard or level of performance required;
b) The means to monitor the provider's performance against the required standard; and
c) The consequences of a failure to meet the required standard, e.g. quantum of penalties suffered due to a fall in performance standards.