Looking for a Performance-Based Contract Template that’s professional, editable, and completely free?
You’ve come to the right place.
This ready-to-use Google Docs template is designed to help companies and independent contractors clearly define expectations, compensation terms, and contractual performance metrics that influence payment.
While many websites offer similar templates behind a paywall (often as rigid PDFs), ours is not only free but also fully editable to suit your specific business needs.
Click the “Get this template” button to preview and then click “USE TEMPLATE” to make your own copy and start customizing it instantly.
Why Use a Performance-Based Contract?
A Performance-Based Contract ties compensation to the actual results delivered by a contractor or service provider.
Unlike flat-fee or hourly contracts, this format rewards high performance and provides businesses with measurable outcomes.
This type of contract is ideal for organizations that want to incentivize quality work and timely delivery. It’s especially useful in IT services, marketing projects, consultancy work, and other result-driven assignments.
What’s Included in the Template?
This editable Google Docs template covers all essential sections, ensuring a clear agreement between the company and the contractor:
Scope of Work
Outlines the services the contractor will perform, including project tasks and objectives. This section sets the tone for the rest of the contract and helps avoid misunderstandings later.
Performance Criteria
Defines how the contractor’s work will be evaluated. These performance evaluation parameters include:
- Quality of Work
- Timeliness
- Key Performance Indicators (KPIs) like delivery rate, customer satisfaction, and error rate
By clearly laying out these contractual performance metrics, both parties understand the expectations and how success will be measured.
Compensation
Details the base payment and any performance bonuses that the contractor may receive upon meeting or exceeding specific targets. This structure supports incentive-based contracts, which help motivate higher levels of performance.
The bonus table allows you to set goals such as:
- Performance Target
- Bonus Amount
- Timeframe
Everything is neatly formatted and easy to update.
Payment Terms
Specifies when and how payments will be made—including the timeline for base payments and how soon bonuses are processed after targets are met. Payment methods (like bank transfer or check) can also be added.
Contract Duration and Termination
Includes the start and end dates of the agreement and defines the conditions under which either party can terminate the contract. This section helps protect both the contractor and the company from misaligned expectations or breach of terms.
Confidentiality
Ensures that all sensitive company information remains protected, even after the contract ends.
Ownership of Work
Clarifies that the deliverables produced during the contract become the property of the company once payments are complete.
Indemnification
Outlines legal protection for the company, ensuring that it is not held liable for issues arising from the contractor’s work.
Miscellaneous Provisions
Includes the governing law and confirms that the contract represents the entire agreement between the parties, overriding any previous verbal or written communications.
Signature Section
Provides space for both the company and the contractor to sign, making the contract legally binding once executed.
Benefits of This Free Template
- 100% Editable in Google Docs
- No signup required
- Can be customized for any industry
- Provides clear performance evaluation structure
- Supports incentive-based contracts
- Easy to copy, edit, and share
Unlike traditional PDF contracts that are difficult to modify, this format gives you the flexibility to tailor every section—from KPIs to payment terms—to your project’s needs.
How to Use the Template
- Click the “Get this template” button.
- You’ll be redirected to the preview page in Google Docs.
- Click “USE TEMPLATE” in the top right corner.
- Customize the fields with your company and project details.
- Share or print once finalized.
Ideal Use Cases
- Hiring freelancers or consultants
- Managing vendor relationships
- Executing IT development contracts
- Running marketing campaigns with performance-based rewards
- Structuring employee bonus projects
If you’re managing external vendors or independent contractors, this template ensures clarity, accountability, and fairness for both sides.
Final Thoughts
Whether you’re a small business, a large organization, or a solo entrepreneur, using a structured Performance-Based Contract Template helps set the stage for measurable results and trust.
With defined contractual performance metrics and performance evaluation methods, you create a results-driven agreement that benefits both parties.
This free template simplifies the process—saving time, reducing legal ambiguity, and motivating performance through rewards.