Video Notes: Traditional Vs Performance-Driven Contracting (Part 1)
This is the first of a two-part series on preparing for exploring the performance-based cleaning system. This video will highlight the differences between a traditional goal-setting and the performance-based model, and review the idea of using incentives and clarify performance-based cleaning principles.
Performance-based contracting is not new: It has already been widely in use in the US, whether at the federal or state levels or by the private sector. In fact, it is expected to become even more prevalent in the future for various legal and practical reasons.
In a performanced-based contract, the buyer specifies the desired results, and the price reflects specifications as opposed to specific tasks and frequencies. Incentives should be set up based on performance and include both bonuses and penalties, so that both parties win or lose together.
Ultimately, performance is more important than the exact process, and continuous improvement should be the long-term goal.