Is Performance-Based Contracting the Next Game Changer for Industrial Contractors?
In today’s competitive marketplace, industrial customers are continuously looking for ways to get more value from their service providers. And conversely, service providers must figure out how to add value if they want to stay competitive.
There are several different ways to approach this, but Mark Wagner, VP of Operations for Veolia North America’s Industrial Business, is featured in the November 2015 issue of BIC Magazine
talking about one emerging trend – performance-based contracting.
Performance-based contracts are based on the simple premise that a contractor is held to an established service quality standard, agreed to by both parties. The service standard is measured and tracked over time according to established key performance indicators (KPIs). The contractor is financially incentivized beyond their rate card to deliver on their guarantees, and of course, the operator benefits from having a reliable service partner that continually adds value beyond cost.
Interested in learning more about the risks and rewards of this unique contracting model?