An Incentive Contract is one of the contract types that is an owner to make an additional compensation to a contractor based on the contractor's execution performance of cost, schedule, quality, and safety according to the contract terms and conditions. There are two possible incentive contracts, fixed price incentive contracts, and cost reimbursement incentive contracts. Fixed price incentive contracts are preferred when contract costs and performance requirements are reasonably certain.
Related Definitions in the Project: The Project Contract
