Outcome-Based Agreements - David Rosewell

Outcome-based agreements work - in the right conditions

Outcome-based agreements are often seen as the holy grail of client-supplier engagement, but it’s difficult to make it work – for both parties. Even when an agreement 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 agreements are achievable, but can only be successful if a number of pre-requisites are satisfied.