suoritusurakka

Suoritusurakka is a Finnish term that translates to "performance contract" or "work performance contract." It is a type of contract in construction and project management where the contractor is paid based on the successful completion of specific, pre-defined tasks or deliverables rather than on a cost-plus or fixed-price basis. The emphasis is on achieving a certain level of performance or outcome.

In a suoritusurakka, the contract clearly outlines the scope of work, the quality standards to be met, and the criteria for successful completion. Payment is typically tied to the achievement of these milestones. This can encourage efficiency and quality from the contractor, as their remuneration is directly linked to their performance. It can also provide greater cost certainty for the client, provided the performance metrics are well-defined and measurable.

This contracting model is often used in projects where outcomes are more important than precise cost forecasting at the outset, or where innovation and flexibility are valued. Examples might include complex engineering projects, research and development initiatives, or service provision agreements where specific service levels are paramount. The clear definition of performance indicators is crucial for the success of a suoritusurakka, as is a robust system for monitoring and verifying that these indicators have been met. Disputes can arise if the performance criteria are ambiguous or if there is disagreement on whether they have been fulfilled.