Contractual acrobatics: a configurational analysis of outcome specifications and payment in outcome-based contracts

Outcome-based contracting (OBC) seeks to improve public services by paying for service outcomes rather than activities. This article explores the link between how are contractually specified and much is paid their achievement. Using fuzzy-set Qualitative Comparative Analysis, we test a framework assessing strength of outcome specifications in 34 UK-based social impact bonds, particular form OBC. Results show that contract features which define intended participant cohorts include deadweight estimation approaches help constrain suppliers’ ability appropriate value thus reduce likelihood managers pay questionable value.