Benefits for Public Management

Public entities have been frequently using one contract arrangement with great results, the “performance contract”. In this arrangement the service provider has a set goal, which, if surpassed, they receive a financial bonus. Overall investments are made at the project’s start and are responsibility of the contractee.

The next stage is evaluating the performance to assess if the objectives have been met and to assess if a bonus is owed in case goals have been surpassed;

The final step is payment for the provided services (fixed pay) after the services have been properly complete and customers are able to reap the benefits.

VITA AMBIENTAL possesses extensive know-how (procedural knowledge) in this form of contract, having over 80% of its contracts served through that model.

VITA AMBIENTAL has a 100% success rate in its performance contracts as well as having an estimated 136% surpassing rate for goals set in contracts.

Standard Contract Design - Performance:

Application

in this stage the service provider is bound to fulfill all of the Minimum Mandatory Scope in the deadline stipulated in the contract, usually 12 (twelve) to 18 (eighteen) months;

Performance Evaluation:

in this stage, which begins after the fulfillment of the mandatory scope that normally takes 12 (twelve) months, the result of water loss reduction projects is evaluated;

Fixed Pay:

in this stage the service provider no longer operates and is paid based on the established results until the termination of the contract. For this contract to be considered a performance contract, a graphic was created...

Performance Contracts

Positive Aspects

Positive
Aspects

Risk and cost sharing

Results
sharing

Public investment postponement

Integrated services within the same contract

Higher celerity in expected results

Compensation based on performance

Integration of various scopes and flexibility while adapting scopes to meet contractual goals

Contact Vita

WhatsApp

+55 (11) 97231-0726

Phone

+55 (11) 2384-5064

E-mail

administrativo@vitaengenharia.com.br