Risk Based Pricing and Incentive Contract Structures Course

Design risk-based pricing and incentive contracts using transparent baselines, target costs, performance measures, sharing formulas and governance controls.

Contracts Management and Law Training Courses Confirmed

Training Locations

This Risk Based Pricing and Incentive Contract Structures Course is available in multiple cities. Please select your preferred location from the list below

Durrës

Albania

Tirana

Albania

Andorra la Vella

Andorra

Escaldes-Engordany

Andorra

Innsbruck

Austria

Salzburg

Austria

Vienna

Austria

Gomel

Belarus

Minsk

Belarus

Antwerp

Belgium

Brussels

Belgium

Banja Luka

Bosnia and Herzegovina

Sarajevo

Bosnia and Herzegovina

Plovdiv

Bulgaria

Sofia

Bulgaria

Dubrovnik

Croatia

Split

Croatia

Zagreb

Croatia

Limassol

Cyprus

Nicosia

Cyprus

Brno

Czech Republic

Prague

Czech Republic

Aarhus

Denmark

Copenhagen

Denmark

Tallinn

Estonia

Tartu

Estonia

Helsinki

Finland

Tampere

Finland

Lyon

France

Marseille

France

Nice

France

Paris

France

Berlin

Germany

Frankfurt

Germany

Hamburg

Germany

Munich

Germany

Athens

Greece

Thessaloniki

Greece

Budapest

Hungary

Debrecen

Hungary

Akureyri

Iceland

Reykjavík

Iceland

Cork

Ireland

Dublin

Ireland

Florence

Italy

Milan

Italy

Naples

Italy

Rome

Italy

Pristina

Kosovo

Prizren

Kosovo

Liepāja

Latvia

Riga

Latvia

Schaan

Liechtenstein

Vaduz

Liechtenstein

Kaunas

Lithuania

Vilnius

Lithuania

Esch-sur-Alzette

Luxembourg

Luxembourg City

Luxembourg

Kuala Lumpur

Malaysia

St. Julian's

Malta

Valletta

Malta

Bălți

Moldova

Chișinău

Moldova

La Condamine

Monaco

Monte Carlo

Monaco

Budva

Montenegro

Podgorica

Montenegro

Amsterdam

Netherlands

Rotterdam

Netherlands

The Hague

Netherlands

Ohrid

North Macedonia

Skopje

North Macedonia

Bergen

Norway

Oslo

Norway

Gdańsk

Poland

Kraków

Poland

Warsaw

Poland

Faro

Portugal

Lisbon

Portugal

Porto

Portugal

Bucharest

Romania

Cluj-Napoca

Romania

City of San Marino

San Marino

Serravalle

San Marino

Belgrade

Serbia

Novi Sad

Serbia

Singapore

Bratislava

Slovakia

Košice

Slovakia

Bled

Slovenia

Ljubljana

Slovenia

Barcelona

Spain

Madrid

Spain

Valencia

Spain

Gothenburg

Sweden

Stockholm

Sweden

Bern

Switzerland

Geneva

Switzerland

Zurich

Switzerland

Istanbul

Turkey

Kyiv

Ukraine

Lviv

Ukraine

Odesa

Ukraine

Dubai

United Arab Emirates

Birmingham

United Kingdom

Edinburgh

United Kingdom

London

United Kingdom

Manchester

United Kingdom

Rome (Vatican-adjacent)

Vatican City

Training Outlines

Introduction

Pricing transfers and rewards risk whether or not the contract makes that logic explicit. Fixed prices can include excessive contingency, while reimbursable models may weaken cost discipline. Incentives can improve outcomes, but poorly designed formulas may reward activity, distort behaviour or create disputes over data and causation.

This course develops a structured method for selecting and designing risk-based commercial models. Participants analyze uncertainty, establish transparent cost and performance baselines, and construct target-cost, gainshare, painshare and outcome-based mechanisms. Exercises test thresholds, caps, measurement rules and scenario sensitivity, enabling commercial teams to align supplier reward with genuine value while retaining auditability and control.

Course Objectives

Assess risk drivers affecting contract price
Select pricing models suited to uncertainty
Build transparent risk-adjusted cost baselines
Design target-cost sharing mechanisms
Develop measurable performance incentives
Model thresholds, caps and sensitivity
Prevent gaming and measurement disputes
Govern adjustment, audit and settlement

Course Content

Day 1: Pricing Strategy and Risk Economics

Commercial objectives and risk appetite
Cost, price and value distinctions
Risk ownership and pricing behaviour
Uncertainty and contingency
Market capability and competitive tension
Pricing model selection framework

Day 2: Cost and Risk Baseline Development

Scope and assumption definition
Cost breakdown and open-book data
Direct, indirect and lifecycle costs
Probability and impact modelling
Contingency and management reserve
Baseline validation and assurance

Day 3: Target-Cost and Sharing Structures

Target-cost contract mechanics
Gainshare and painshare formulas
Share ratios and adjustment points
Ceilings, floors and caps
Cost disallowance and audit
Worked commercial models

Day 4: Performance and Outcome Incentives

Outcome and value measures
KPI weighting and thresholds
Bonuses, credits and at-risk fees
Milestone and schedule incentives
Quality and innovation rewards
Behavioural and gaming risks

Day 5: Modelling, Negotiation and Governance

Scenario and sensitivity testing
Supplier margin and affordability
Negotiation of commercial trade-offs
Change and baseline adjustment
Measurement and approval governance
Final reconciliation and lessons learned

Training Schedule

Below is the table of cities along with the respective dates for the upcoming training sessions of Risk Based Pricing and Incentive Contract Structures Course. Please review the schedule to find the most convenient option for you. You can also use the below search bar to type the city name and filter the results.