Payment based on performance Clause Samples
The "Payment based on performance" clause establishes that compensation is contingent upon the achievement of specific results or milestones. In practice, this means that payments to a contractor, service provider, or employee are only made when agreed-upon objectives, such as project deliverables or performance targets, are met. This approach incentivizes high-quality work and ensures that the paying party only disburses funds for satisfactory outcomes, thereby aligning interests and reducing the risk of paying for incomplete or substandard performance.
Payment based on performance. The Authority will not pay the full amount for places where a service is not being provided to the basic standard defined in the service specification and performance framework.