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