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.