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Bonus/penalty rules |
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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.
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Technology field: Management and organisation
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General information
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General criteria
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Environmental criteria
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Economic criteria
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Application outside railway sector (this technology is railway specific)
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Overall rating
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Overall potential: very promising |
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Time horizon: mid-term |
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Bonus / penalty rules in railway procurement could create a powerful incentive for manufacturers to produce energy efficient or - more generally - low-LCC vehicles. First applications of the concept show its principal feasibility. However, the application of bonus / penalty rules is often impeded by obstacles stemming from the lack of accepted reference values and the segmentation of budgets and responsibilities within railways. These barriers can be partly overcome by standardisation efforts and the creation of financial interfaces between different railway departments. The attempt to share profits from low LCC with manufacturers is a very promising approach to raise the importance of energy efficiency in railway procurement. |
date created: 2002-10-09 |
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© UIC - International Union of Railways 2003 |
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