Performance Based Contract Template

This performance based contract template has 6 pages and is a MS Word file type listed under our legal agreements documents.

Sample of our performance based contract template:

PERFORMANCE-BASED CONTRACT This Performance-Based Contract (this "CONTRACT") is made and effective this [Date], BETWEEN: [COMPANY NAME] (the "Customer"), a company organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [COMPANY NAME] (the " Contractor "), a company organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] NOW THEREFORE, in consideration of the mutual promises and obligations hereinafter set forth, the Parties agree as follows: PURPOSE The purpose of this Contract is to introduce performance-based contracting through issuance of a fixed-price, award-fee type of contract. [COMPANY NAME] retains and engages Contractor in his/her professional capacity to provide [SPECIFY]. The work to be performed by Contractor is defined in Exhibit A Scope of Work, to this Contract. Contractor acknowledges that the services to be performed for [COMPANY NAME] are those which s/he generally performs, in the independent established profession in which s/he is customarily engaged. PERIOD OF PERFORMANCE The term of this Contract will commence on [START DATE] and will expire on [END DATE], subject, however, to earlier termination as hereinafter provided. TYPE OF CONTRACT AND CONTRACT AMOUNT This is a type of fixed-price contract with an award fee. The fixed price is [SPECIFY] in U.S. dollars and is payable upon successful completion of the contract as stipulated in section 5: Final Product. The award fee is US$ [SPECIFY] and will be paid in addition to the fixed price, provided that the Contractor's performance is in accordance with the Indicators, at section 7. PAYMENT SCHEDULE Each of the first [SPECIFY NUMBER] payments under this Contract shall represent [SPECIFY] percent of the fixed price. They are scheduled for [DATE], [DATE], and [DATE]. Each of the next [SPECIFY NUMBER] payments shall represent [SPECIFY] percent of the fixed price. They are scheduled for [DATE] and [DATE]. The final payment shall represent [SPECIFY] percent of the fixed price and is scheduled for [DATE]. The payment schedule applies only to the fixed price of US dollars [SPECIFY]. An award-fee board shall be established to determine the award amount that the Contractor may earn in whole or in part at the end of the period of performance. The award-fee board shall be composed of at least three members of the Contractor's staff. The amount of the award fee to be paid to the Subcontractor shall be a determination unilaterally made by the award-fee board and is not subject to the dispute clause. Payment of the award fee shall be made after the expiration date of this contract. FINAL PRODUCT As part of the project, the Contractor must provide [SPECIFY]. The Contractor agrees to provide the necessary staff to participate in discussions with the client regarding evaluation results, program changes, revenue forecasts and related management issues during the pilot phase of this performance-based contract.