What is Performance Contract?
The performance contract is a document that contains the performance goals that must be achieved during the set period of time. This is a legal document in which one organization or individual shows consent to pay to another organization or individual after successful completion of the task or project they were hired to do. The management uses this document as a performance measuring tool. This contract is made at the beginning of a project and performance goals are set after a mutual negotiation. This agreement can be made in many situations such as starting a new project in an organization, arranging an event, hiring an artist for any concert, etc. Every performance contract will have terms and conditions according to the nature of the project.
How to write a Performance Contract?
Whenever you plan a new project or managing an event you require going through a performance contract. A performance contract must be written in a proper format and signed by the concerning parties. All the agreed upon performance targets must be stated in the contract. The means of evaluation of the performance should also be included. The contract must show the incentive that will be paid to the worker or performer after successful completion or achievement of the set targets.
The performance contract must contain the following details, although it varies project to project.
- Header statement that displays the day, date and the parties involved in the contract. It must contain the main task and venue also if it is possible.
- The level of performance that is required
- A stipend that will be made after successful completion of the task
- Establish hard and fast rules for evaluation
- The agreed time period for the completion of the project.
- Any penalties if targets are not achieved
- Signatures of both the parties involved in the contract
Create your own Performance Contract Sample by using the following template,
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Download Performance Contract Template in MS Word (.DOC), Open Office Writer (.ODT) and PDF formats.