Penalty, Other Management

Penalty

Penalties should aim at fixing a problem when it arises and ensuring that it does not recur. Guidelines to note while stipulating penalties are:

  • Penalties should not leave scope for taking them lightly.
  • Penalties should act as a deterrent to shoddy work by being adequately troublesome.
  • Penalties should increase with recurrence of the same transgression.
  • Penalties should be imposed immediately after failure occurs (say in the next monthly bill payment). This forces contractor to take corrective action immediately.
  • Penalties should be shaped around the most critical aspects.
Posted Date: 9/28/2012 2:47:06 AM | Location : United States







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