Performance Contract — Focus on Losses Controle, in Social Vulnerability Areas: Cangaíba Case Study

Silvio Henrique Campolongo, Luis Guilherme Bechuate, and Eduardo Augusto Ribeiro Bulhões Filho

Effico Saneamento, Brazil

Abstract: Among the modalities of contracts in the sanitation sector, there is a contracting modality implemented in mid-2010 and which is on the rise, where the due payments to the hired company, is based and dependent of the results reached in the project. There are several variations on this model of contract, since the that one where the receivables are completely dependent of the results until that one where there is a fixed price for the assets and basic services, and there is a plus compensation for the overcome results. This modality has been diffused specially because of the achieve remarkable results for both sides, contractor and contracted. The possibility of increasing gains with mutual advantages, as well as to enable greater technological advancement, are the great attractive and the driving force of this type of contracting: The model used to allow the contracted company to apply technical solutions, although not provided in the scope, if it promises improvement on the results of the project.