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متابعة

Which of the following is the MAIN reason for including incentive clauses in a contract?

 

A. Reducing costs to the buyer.

B. Controlling contractor costs.

C. Aligning contractor and buyer goals.

D. Reducing production costs.

E. Reducing contractor risk.

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تم إضافة السؤال من قبل Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
تاريخ النشر: 2016/07/22
Ksenija Kancelak
من قبل Ksenija Kancelak , Construction Project Manager , City of Koprivnica, Koprivnica (Croatia)

The right answer is:      C

Abdul Rehman
من قبل Abdul Rehman , Electrical Engineer , Tamdeed Projects

Option C is the correct answer according to my knowledge and all the other options don't fit in here.

Ahilan R
من قبل Ahilan R , Scientific Assistant-D , Nuclear Power Corporation of India Ltd (NPCIL)

Answer is C. Aligning contractor and buyer goals.

مستخدم محذوف‎
من قبل مستخدم محذوف‎

D. Reducing production costs.

Keith Gregory Wright
من قبل Keith Gregory Wright , Program Director , DynCorp International

The purpose of the incentive is to provide a motivation to be more efficient and effective. Cautioned to say if the contract is not designed as an instrument to effect this and the parties are not collaborating with shared outcomes and goals, it will get lost in translation. Simply put if you want to incentivise a contract then you need the following in your agreement:

  1. legal terms and conditions that support incentive arrangement and collaborative outcomes
  2. an administrative arrangement that support collaborative outcomes
  3. a commercial arrangement that supports Administrative arrangement and is reflected in legal terms and conditions and 
  4. a scope that defines what is to be done and by who when that support Legal, Administrative and Commercial arrangements.

Trust me when i say not many people get this right. The defaul is usually conflict and confusion in an adversarial context.

Muhammad Usama Alam
من قبل Muhammad Usama Alam , Service Engineer , R. A Engineering and Services

Reducing costs to the buyer.

mukilan veerasamy
من قبل mukilan veerasamy , Executive Vendor Development , BPL Medical Technologies P.Ltd

I think negotiation of cost & Terms between buyer and supplier is that.

George Fawzy
من قبل George Fawzy , quality control engineer , Aybco for contracting

 i think answer c is the right one

Claudiu Vladea
من قبل Claudiu Vladea , Customer Relationship Manager , JobService Middle East

C. Aligning contractor and buyer goals. Correct Answer.

ABDUSSALIM NARIKKOTTIL
من قبل ABDUSSALIM NARIKKOTTIL , Senior Travel Consultant , AL KHALAF TOURS AND TRAVELS

IMPROVE BUSINESS OF COMPANY