Many election technology projects will involve external suppliers of goods and services. These external suppliers may not have the same commitment to the success of an electoral event as an election management body will have. Inclusion of performance safeguards in contracts with external suppliers can help to minimise the risks in using technology by increasing the commitment of external suppliers to the success of the project. Performance safeguards can also be applied to internal staff to raise their level of commitment to an electoral technology project.
Performance safeguards can include performance bonuses, bonds, penalty clauses and scheduled payments.
Performance bonuses are extra payments above the basic agreed price that are made if agreed performance criteria are met. Bonuses should not be so freely given as to come to be seen as a 'right', regardless of performance. Satisfactory performance should be demonstrated before bonuses are paid. Bonuses can be paid at different rates tied to varying levels of performance.
A performance bond is a payment made up front by a supplier of goods or services that is refunded in whole or in part if certain performance criteria are met.
A penalty clause in a contract will provide that agreed performance criteria must be met, otherwise the penalty clause will be invoked. The penalty could include a payment that must be made by the supplier or an amount that will be deducted from payments due to the supplier. Deducting amounts from payment due is probably the most effective form of penalty clause.
Scheduled or staggered payments on a project is another form of performance safeguard. Payments can be made in installments as agreed milestones are met, and the final payment on a project can be withheld until the project is successfully completed. This form of payment is a powerful incentive for suppliers to deliver the goods on time and according to the agreed standard.
Performance criteria used to enforce performance safeguards should be clear and measurable. Criteria that are vague or hard to measure can be difficult or impossible to enforce. It will also be most effective if all relevant parties agreee to the criteria before the commencement of a project. Furthermore, care should be taken to collect relevant data to ensure that performance can be measured.
Performance criteria can include quality and timeliness measures. Goods and services must be both of high quality and provided on time. Timeliness is particularly important where an electoral event is time-dependent. Timeliness measures are useful to include as performance criteria as they are generally easier to measure than quality measures.
When including performance safeguards in contracts, legal advice may be necessary to ensure that any penalties are legally enforceable.
