Remuneration describes how the contractor is rewarded for their services. Remuneration to a contractor for a time and materials contract is straightforward, while a lump sum contract remunerates the contractor based on an agreed amount and in one payment. An incentive based contract remunerates the contractor in two components: first, a base element and second, a bonus element to be paid if defined performance standards are achieved. The adoption of the most appropriate remuneration basis can help motivate the contractor to deliver the desired outcomes. See also Contract. Performance Based and Contract, Time and Materials.
« Back to Glossary IndexRemuneration
Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and procurement consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
