Performance-based contracting
Performance-based contracting (PBC) is a way for people to work together where they make a deal by agreeing on how well they will do something.
For example, let's say a mom and dad want to hire a babysitter to watch their child while they go out for dinner. They can make a performance-based contract with the babysitter which means that they will agree on some specific things that the babysitter will do to take care of their child.
Those things might include things like feeding the child, reading them a book, helping them with their homework, and putting them to bed at a certain time. If the babysitter does all of these things well, the parents will be happy and will pay the babysitter what they agreed upon in the contract.
However, if the babysitter doesn't do those things well or doesn't do them at all, the parents will not be happy and may not pay the babysitter or might pay them less than they agreed upon.
In short, performance-based contracting is a way for people to work together and agree on specific actions or goals that one person will complete, and if they do it well, they get a reward.
For example, let's say a mom and dad want to hire a babysitter to watch their child while they go out for dinner. They can make a performance-based contract with the babysitter which means that they will agree on some specific things that the babysitter will do to take care of their child.
Those things might include things like feeding the child, reading them a book, helping them with their homework, and putting them to bed at a certain time. If the babysitter does all of these things well, the parents will be happy and will pay the babysitter what they agreed upon in the contract.
However, if the babysitter doesn't do those things well or doesn't do them at all, the parents will not be happy and may not pay the babysitter or might pay them less than they agreed upon.
In short, performance-based contracting is a way for people to work together and agree on specific actions or goals that one person will complete, and if they do it well, they get a reward.