Section X— Secondary Options

Clause X20

Key Performance Indicators (KPIs)

Purpose

The Contractor's performance is measured against KPIs stated in the Contract Data. The Contractor is incentivised or penalised based on KPI results.

Practical Application

KPIs cover areas such as time, cost, quality, safety, and sustainability. The Contractor reports KPI results at intervals stated in the Contract Data.

Common Pitfalls

KPI targets must be objectively measurable and achievable. Poorly defined KPIs cause disputes over measurement methodology and results interpretation.

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⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.

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