A payment mechanism acts like a set of key performance indicators. It allocates risk and incentivises contractors to perform to the required standard within a public-private partnership contract.
The need to understand payment mechanisms is becomingly increasingly important in facilities management. Companies that fail to deliver on their contractual obligations risk financial deductions. At Vercity, we realise this is a challenging area to navigate. In working together, we’ll help you improve your core understanding resulting in better services being delivered and improved client relationships.
The tools to teach and improve payment mechanism performance
With a breadth of knowledge across our portfolio, we have the expertise and the tools to improve your understanding of payment mechanisms.
We seek to break down the challenges you face in this area by providing you with the learning materials you need to make improvements. In turn, this will strengthen your relationships with respective clients. Learning materials can include operational protocols and template notices for the administration of the payment mechanism and associated reliefs.
At Vercity, we also provide comprehensive Contract Health Check packages that provide you with the tools you’ll need to fully understand the terms of your engagement.
In calculating payments against performance outputs and other parameters, we can help identify the potential for financial deductions.
Interpretation and calculation of complex payment mechanisms
Vercity has a depth of experience in supporting the interpretation and calculation of complex payment mechanisms. In calculating payments against performance outputs and other parameters, we can help identify the potential for financial deductions.
We can help you interpret contracts to ensure you have a full understanding of how your performance and deliverables might impact calculations. With a full overview, we can then help you mitigate issues and provide relief throughout the various parts of your agreements.
In helping you interpret calculations; you be able to deliver your obligations more effectively. We provide a tailored service based on your specific needs and can help you develop the processes, tools and knowledge you’ll need moving forward.
Driving better performance through effective management
To meet your contractual obligations and mitigate the risk of incurring deductions, you need effective management.
At Vercity, we’ve developed an operational crib sheet that sets out the key performance indicators that influence whether or not you need to use the payment mechanisms in your operations.
We understand that FM contracts can be complex and that your obligations are often set out over several different sections. Our operational matrix presents the high-risk aspects of your deliverables in one format, so that operators can understand where improvements are needed. With Vercity managing expectations from all sides, you can be confident that you’re delivering optimal performance.