Any ideas for Vendor incentives on a T&M Contract? We need to insure our Vendor meets deadlines and milestones. Some incentives to insure an element of risk, but also reward.
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IT Manager in IT Services2 years ago
The best incentive from my experience would be a transparent roadmap of work that a service provider could translate into their own "prospect/ pipeline" in a 3 - 6 - 12mth period. They will fill the blank with quality work and trusting relationships to materialise the pipeline.
A dried-up pipeline is the worst nightmare right now for any business. So make it a win-win incentive for your organisation and trusted service delivery partners.
CIO in Energy and Utilities2 years ago
All contracts must comply with the ... this is necessary and non-negotiable, the work plan and milestone timelines must be assured.
Introduce rewards for the vendor's innovative ideas or contributions that add value to the project, improve efficiency, or enhance outcomes. By incentivizing such contributions, you can aim to create an environment that encourages the vendor to think outside the box and actively seek ways to optimize processes and deliver exceptional results.