COURSE OVERVIEW:

In a competitive project environment, the traditional "adversarial" contract model is increasingly replaced by collaborative frameworks that align the contractor’s financial motives with the owner’s project goals. This course provides a sophisticated exploration of incentive-based contracting, focusing on the design and implementation of mechanisms that reward superior performance and share project risks. It emphasizes the strategic importance of choosing the right incentive structures to drive innovation, efficiency, and schedule acceleration.

The scope of this training encompasses the technical and psychological aspects of incentive design, including "Pain-Share / Gain-Share" models, performance-linked bonuses, and award fee structures. Participants will learn how to set realistic yet challenging targets for cost, schedule, safety, and quality, ensuring that every incentive is measurable and auditable. The course addresses the complexities of "Target Cost" contracting and provides practical tools for calculating the financial impacts of performance deviations.

Coverage includes the analysis of the "Total Cost of Ownership," the management of subjective award fees, and the implementation of robust auditing and governance protocols. Attendees will learn how to balance the risks of "Gold-Plating" against the benefits of over-achievement and how to avoid the unintended consequences of poorly designed incentives. By mastering the development of incentive contracts, professionals will be able to foster a culture of partnership and high performance that delivers exceptional project value.

COURSE OBJECTIVES:

After completion of this course, the participants will be able to:

• Design effective incentive-based contract structures for various project types.
• Align contractor financial motivations with overarching project objectives.
• Implement "Pain-Share / Gain-Share" mechanisms in collaborative contracts.
• Define measurable and auditable KPIs for cost, schedule, and quality.
• Utilize "Target Cost" models to drive efficiency and transparency.
• Manage subjective "Award Fee" boards and evaluation processes.
• Calculate the financial impacts of performance-linked incentives.
• Analyze the risks and benefits of various incentive "Slopes" and caps.
• Avoid the unintended consequences and perverse incentives in contracts.
• Execute robust auditing and verification of incentive-linked data.
• Negotiate fair and motivating incentive levels with key partners.
• Conduct post-project evaluations of incentive effectiveness and ROI.

TARGET AUDIENCE:

This course is designed for Contract Managers, Procurement Directors, Project Controllers, Commercial Leads, and Senior Executives responsible for project acquisition and delivery.

TRAINING COURSE METHODOLOGY:

A highly interactive combination of lectures, discussion sessions, and case studies will be employed to maximize the transfer of information, knowledge, and experience. The course will be intensive, practical, and highly interactive. The sessions will start by raising the most relevant questions and motivating everybody to find the right answers. The attendants will also be encouraged to raise more of their questions and to share in developing the right answers using their analysis and experience. There will also be some indoor experiential activities to enhance the learning experience. Course material will be provided in PowerPoint, with necessary animations, learning videos, and general discussions.

The course participants shall be evaluated before, during, and at the end of the course.

COURSE CERTIFICATE:

National Consultant Centre for Training LLC (NCC) will issue an Attendance Certificate to all participants completing a minimum of 80% of the total attendance time requirement.