PERFORMANCE INCENTIVES STANDARD PROGRAM Sample Clauses
The PERFORMANCE INCENTIVES STANDARD PROGRAM clause establishes a framework for rewarding parties based on the achievement of specific performance targets or milestones. Typically, this clause outlines the criteria for earning incentives, such as meeting deadlines, exceeding quality standards, or achieving cost savings, and details the form and timing of the rewards, which may include financial bonuses or other benefits. Its core practical function is to motivate higher performance and align the interests of the parties by providing tangible benefits for exceptional results, thereby encouraging efficiency and excellence in contract execution.
PERFORMANCE INCENTIVES STANDARD PROGRAM. 4.1. The Contractor may earn Performance Incentive Payments to reimburse it for a portion of its cost sharing as described in Section 2.