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   Bonus/penalty rules  evaluated  
Procurement contracts often foresee penalty payments for the case that certain requirements (e.g. maximum maintenance costs) are not fulfilled by manufacturers. So-called bonus / penalty rules, i.e. additional agreements on bonus payments for the case of "over-performance", could improve the role of energy-relevant parameters such as efficiency of traction equipment or mass per seat in the design of railway vehicles.
Technology field: Management and organisation
close main section General information
  close sub-section Description
   

LCC and other energy-related quantities may be effectively optimised by creating incentives for manufacturers.

Procurement contracts often contain penalty agreements, i.e. clauses specifying the amount of money to be paid by the manufacturer if certain agreed parameters (especially maximum downtime or maintenance) are not fulfilled by the product. However, the reverse case is usually not foreseen by the contracts, i.e. operators usually do not pay back to the manufacturer part of their LCC benefits if a product performs better than expected. Such a bonus-penalty system could create an additional incentive for manufacturers of rolling stock.

Bonus-penalty clauses work as follows: A target value for some relevant quantity is specified. If manufacturers do better than that, they are rewarded by a price increment, if they do worse, there's a certain price reduction.

Bonus / penalty rules can be applied to a number of energy relevant parameters:

  • efficiency of traction equipment
  • mass per seat
  • k-values of passenger coaches
open main section General criteria
open main section Environmental criteria
open main section Economic criteria
no data available Application outside railway sector (this technology is railway specific)
open main section Overall rating
References / Links:  Dongen, Fiechter 2000
Attachments:
Related projects:  Bonus/Penalty Rules in weight reduction;  PROSPER (Procedures for Rolling Stock Procurement with Environmental Requirements)
Contact persons:
 date created: 2002-10-09
 
 
© UIC - International Union of Railways 2003
 
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