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After signing: performance and renewalLesson 23 of 27

Academy/Procurement, Bids & Contracts

Performance standards

Turn "do a good job" into words a vendor can actually be held to.

A performance standard is a measurable definition of acceptable work written into the vendor contract, how often, how fast, and to what condition, in place of vague language like "professional manner." Without one, the board and the vendor can each believe the work is fine, because there is no shared standard to check it against.

01

Why "professional and attractive" is not a standard

Most vendor contracts already promise good work in general terms: maintain the grounds in a professional manner, keep the pool clean, provide courteous service. None of that tells anyone what "good" looks like on a specific Tuesday. If the grass is six inches tall and the vendor insists the property looks fine, the board has no line in the contract to point to, and neither does the vendor.

A performance standard replaces that sentence with something a person could check without an argument: grass cut to a set height every Monday and Thursday, common area lighting outages repaired within a stated number of hours of being reported, trash enclosures emptied and locked by a set time each collection day.

02

The categories worth writing down

Industry guidance on defining vendor performance breaks the work into a small set of measurable pieces: a description of the service itself, the metrics that show whether it was done (frequency, condition, response time), and what happens when a metric is missed. Atlassian's guidance on service level agreements treats response time and resolution time as two separate clocks worth stating separately: how long the vendor has to acknowledge a reported problem, and how long it then has to actually fix it. A gate that breaks Friday night and gets a call back Monday, then repaired the following week, has met neither clock unless the contract said what either clock was.

You do not need a full, formal service level agreement to get the benefit of this thinking. Even a short list of frequency, condition, and response time expectations, written into the scope of work, gives the board something to measure against. A dedicated service level agreement takes the same idea further by tying missed metrics to a stated consequence, like a service credit or a corrective action plan.

03

What you get if you write nothing down

A contract with no performance language at all is not a contract with no standard at all. Construction and service contracts carry some baseline of implied workmanlike quality by default, a floor for evaluating the work even when the contract is silent on quality. How much of that implied baseline a contractor can disclaim in writing, especially on residential work, depends on your state, so treat a written performance standard as the thing you control rather than relying on the unwritten floor underneath it.

Check yourself

Answer before you read the explanation, recalling it is what makes it stick.

A landscaping contract says the vendor will "maintain grounds in a professional and attractive manner." Six weeks in, the board says the grass is too long. The vendor says the property looks fine. What was missing from the contract?

Which pairing names two separate, measurable clocks a performance standard can state separately for the same reported problem?

A service contract says nothing at all about the quality of the work. The vendor's work turns out to be sloppy. What baseline still applies by default?

Sources

Procurement, Bids & Contracts

Once you know what standard you want to hold a vendor to, the next lesson shows how to formalize it into a service level agreement with real consequences for missing it.

Whether a written performance standard is required, and how much of the implied warranty of workmanlike quality a contractor can disclaim in writing, varies by state and by the contract's own language.