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Pay for Performance: Consultant's Perspective on Environmental Services Contracting

Gain insights into the benefits and challenges of Pay for Performance (PFP) environmental services contracting from a consultant's viewpoint. Discover how PFP impacts key stakeholders, from regulatory bodies to clients, and learn strategies for successful implementation.

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Pay for Performance: Consultant's Perspective on Environmental Services Contracting

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Presentation Transcript

  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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