Successful motivation requires a well-written contract that provides appropriate rewards and incentives. In traditional design-bid-build, contracts often contemplate only failure, with provisions and clauses that address what the aversive consequences will be once failure occurs. This presumption of failure results in contracts that do not contemplate how the contracting parties might appropriately reward one another for success and excellent performance. The most powerful design-build contracts, on the other hand, are written to include things such as award fees and incentives to promote cooperation, teamwork and collaboration. Combined with the effective use of performance requirements, these “aspirational contracts” help the contracting parties to achieve extraordinary success.
Learning Objectives:
1. Attendees will learn about the difference between punitive and incentive contracting to reward accomplishments.
2. Attendees will learn how to effectively use performance requirements in contracting.
3. Attendees will specifically learn how to promote cooperation, teamwork and collaboration.
4. Attendees will learn tips on well written contracts.
Richard J. Formella, PMP, DBIA, CPPO
President
Design-Build Strategic Solutions, LLC
Richard J. Formella is the President of Design-Build Strategic Solutions, LLC, a design & construction contracting process consulting firm. He recently retired from federal service as Chief of the Bio-Containment Procurement Branch for the Department of Homeland Security (DHS). He has over 32 years of federal acquisition/contracting experience and joined DHS in 2006 serving as a Head of the Contracting Activity through 2014. Prior to joining DHS, Mr. Formella was employed by the Department of Justice (DOJ), Federal Bureau of Prisons (BOP) for over 20 years and concluded his service at BOP as the Chief of Construction Contracting where he led and administered the $3.0 billion dollar new federal prison construction contracting program. At the DHS he led the team providing design and construction contracting support for the DHS Science and Technology Directorate for major laboratory renovations and new construction an overall $1.5 billion program, including the $1.3 billion National Bio & Agro Defense Facility.
Mr. Formella is a 1986 graduate of the FLETC, and holds a BS in Forest Management from the University of Wisconsin – Stevens Point; a Masters Certificate in Project Management from Regis University, and a MS in Management – Leadership and Organizational Effectiveness from Troy University. He is a certified Project Management Professional (PMP), a designated Design-Build Professional (DBIA) and a Certified Public Procurement Officer (CPPO).
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