Incentives for catering contracts
28 August 2012
Q: I have been asked to investigate the possibility of using an incentivised contract to renew an outsourced catering deal. How can I ensure that my company gains maximum benefit from such an approach?
A: Ron Hardwick, purchasing manager at The City of Edinburgh Council, writes: These contracts are all about sharing rewards of improved performance. In a normal fixed-price or unit-cost contract for catering services, there may be little incentive for the outsourced company to improve.
The contract should make it worthwhile for the...