Performance-Based Agreement

A performance-based agreement is a contract where the payment and terms are contingent upon the provider achieving specified performance targets or outcomes. This type of agreement includes clear metrics for success, such as timelines, quality standards, and specific deliverables. Performance-based agreements are essential for ensuring accountability and motivating providers to meet or exceed expectations. Regular monitoring and evaluation of performance metrics help ensure that the service provider delivers the expected results and allows for adjustments if necessary.