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Performance contracting is a freely negotiated performance agreement between a government, acting as the owner of a public agency and the management of the agency. It is used by the Kenyan public to measure performance. Local authorities face pressure to improve service delivery, lower costs become more accountable, customer focused and be responsive to stakeholder needs.
Performance agreements offer a practical means of including performance data focused on results in the executive’s performance appraisal. The agreements have a significant impact on executive performance evaluations and bonus calculations. continuity of the program’s objectives throughout leadership changes.
Performers’ contracts should include policies regarding cancellations and unforeseen circumstances, expectations for the performance, and payment amounts, including deposits. They should also include details such as the time and location.
Performance contracting is an alternative for public sector organizations to use for construction delivery that has been around for more than 25 years and offers a lot of advantages to those that adopt it.