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Pay for Performance

Pay for Performance. A Consultant’s Viewpoint Kenneth E. Czoer, PG CBM Environmental Services, Inc. Beneficiaries of Pay for Performance. EPA State DEQ Clients Consultants. State DEQ Perception of PFP Benefits. Consultants must produce results to be paid

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Pay for Performance

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  1. Pay forPerformance A Consultant’s Viewpoint Kenneth E. Czoer, PG CBM Environmental Services, Inc.

  2. Beneficiaries of Pay for Performance • EPA • State DEQ • Clients • Consultants

  3. State DEQ Perception of PFPBenefits • Consultants must produce results to be paid • State personnel are in oversight role not consulting role • Regulators can demonstrate to legislature that money is going for cleanup

  4. Client’s Perception of Pay for Performance Benefits • Contract is easy to understand and quantify • State personnel provide oversight • Regulators can demonstrate that $ are going for cleanup • Perceived as being faster form of cleanup

  5. Consultant’s Perception of why PFP is Beneficial • No State Regulatory Interference • Higher Profit Margins • Better Cash Flow • Quicker Cleanups

  6. PFP in Action • Be Certain Assessment is Adequate • Work on projects where experienced • Include all costs in bid or negotiated price • Require prompt payment • Evaluate cash flow during bidding

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