Managing your district's bus contractor - Student Transportation - schools - Brief Article

School Administrator, June, 2002 by Mark A. Walsh

These issues pose challenges to the business relationship between the contractor and the district. Many contracts contain penalty or liquidated damage provisions that entitle the district to levy a fine if certain identified situations occur.

Although the penalty provisions are frequently appropriate and effective, the district should consider using penalty monies to support performance incentives to encourage the contractor to modify negative actions or operating procedures. These incentives are negotiated to meet the specific needs of both parties and to serve as an important part of a carrot-and-stick approach.

Mark Walsh is a certified management consultant and partner in Transportation Advisory Services, 20 Flamingo Court, Palm Coast, FL 32137.

E-mail: mwalsh@TransporationConsultans.com.