Retrospective Performance Payment Clause Samples
A Retrospective Performance Payment clause establishes a mechanism for compensating a party based on their performance, assessed after the completion of a specified period or project. Typically, this clause outlines the criteria or metrics used to evaluate performance, such as meeting certain milestones, quality standards, or cost savings, and stipulates that payment will be made only if these benchmarks are achieved. Its core practical function is to incentivize high performance by tying compensation to actual results, thereby aligning the interests of both parties and mitigating the risk of paying for subpar outcomes.
Retrospective Performance Payment. The maximum retrospective performance payment available to the State under this model is based on achieving overall federal savings as described in the MOU and in Section IV.I above. The performance payment qualifications will vary by year. Additional detail is provided in Appendix A. IV.J.3.b.vii.1. Calculation of Retrospective Performance Payment: CMS will consult with the State on methodological issues and data collection to execute the retrospective performance payment calculations.
Retrospective Performance Payment. The maximum retrospective performance payment available to the State under this model is based on achieving overall federal savings as described in the MOU and in Section