In terms of the 8 different payment schemes I was specifically referring to what we call 'payment curves' (see attached graphic) as opposed to payment regimes such as cost+ (time and material), fixed price, cost + fixed fee, etc. In this light these are grouped into 5 main families with a couple of variations inside each. These are as follows:
- 'all or none' payment curves
- Linear payment curves
- Non-linear payment curves
- Alternative payment such as demerit point and visual payment curves
- Matrix payment curves
The intent of this discussion is to simply highlight that the choice of payment curve, similar to the choice of performance measure and level, can have a significant impact on the success (or otherwise) of the overall performance management framework. My blog (www.performancebasedcontracting.com) has 3 posts specifically on this topic including the graphics.
I hope this helps and answers your questions. However, please let me know if you have any further questions.
A helpful resource for you: www.amazon.com/Outsourcing-Agreements-Practical-George-Kimball/dp/0199575223/ref=sr_1_5
The book includes a short form outsourcing agreement along with some template schedules. Importantly, it provides a lot of helpful guidance around many of the issues to work through on an outsourcing transaction.
Hope this helps.
AJA Global Consultancy Services, LLC
Poorly translated contracts could become totally incomprehensible as some wordings do not translate from one language to another. Furthermore, the use of words that look similar in both languages but mean different things entirely, is a risk.
I agree with your thought Unlimited liability means Unlimited exposure irrespective of size of contract.
If there is no way to Limit your liability then atlast include a clause that defines a process of identifying liability. E.g If a Mistake happens by your employee due to some vulnerability in Client/Customer systems/process then is it only your fault or customer is also responsible for it ?.. If both parties agree to jointly decide on mechanism for fixing ownership of issue then you get a fair chance to defend yourself. Just my thoughts...
Thank you for your response. Most of these happen to be government contracts where one is unable to propose any changes. Do organizations that work with government customers usually willing to undertake the risk of unlimited liability? I am also guessing that there may potentially be no risk that will require indemnification, in a product supply contract or am I underestimating?
my suggestion would be to have editable "visual templates" (e.g. in PowerPoint) in use already during negotiation. Depending on the topic, they could be owned by business or legal negotiators. You can use these in presentations and outside of contract documents to facilitate reaching the meeting of the minds about key topics for your relationship/transaction, and modify them collaboratively with the client. At the end, you just add the static version of the diagram (exported e.g. as jpg or png) to the contract, like a snapshop documenting what was agreed together.
In order to minimize effort, create negotiable visualizations only for topics that are crucial and would actually benefit from increased clarity and shared understanding.
If you want an example of such a use case, you may want to have a look at this article that appeared on JSCAN (it is part of your IACCM Membership): journals.sagepub.com/doi/full/10.1177/2055563616669739
Let me know if this helps, and feel free to reach out again!
• Passera Design
just wondering if you would be willing and able to submit your example on the IACCM Contract Design Pattern Library (even in a partial/edited/anonymized form if you so wish). We have a section on timelines, and your example would be in good company: contract-design.iaccm.com/timeline
Submissions can be made here: contract-design.iaccm.com/contribute
I am available for any question regarding the submission and publishing process. :)
• Novo Nordisk
Thanks Stefania, very practical suggestion! I found the article and look forward to reading it.