Outcome-Based Contracts - David Rosewell

Outcome-based contracts work - in the right conditions

Outcome-based contracting is often seen as the holy grail of client-supplier engagement, but it’s difficult to make it work – for both parties. Even when a contract includes the mechanism for contracting on outcomes (or even shared risk/reward), both client and supplier are often at a loss as to how to make it happen. It’s our opinion that outcome-based contracts are achievable, but can only be successful if a number of pre-requisites are satisfied.