What is one of the considerations in service contracts that involves performance quality?

In service contracts, one of the key considerations regarding performance quality is that incentives must be objectively measurable. This is important because measurable incentives help ensure that both parties have a clear understanding of performance expectations and outcomes. When incentives are based on objective criteria, it allows for accountability and can motivate service providers to enhance the quality of their performance. This aligns the interests of both the contractor and the customer, fostering a more productive and outcome-oriented relationship. By defining performance measures that can be quantitatively assessed, organizations can better manage the quality of the services being provided, ensuring they meet agreed-upon standards.

By contrast, the other options present considerations that do not align with the emphasis on quality in service contracts. For example, stating that incentives should not be used contradicts the need for encouraging high-quality performance. A focus on only financial performance ignores the broader aspects of service quality that impact customer satisfaction and contract success. Lastly, suggesting that performance quality is secondary to cost undermines the fundamental goal of service contracts, which is to deliver both value and quality, as quality often impacts long-term costs and outcomes.