# Key Indicators and Outcomes > the key indicators and outcomes set out in Schedule 2 Part 2 to this Agreement; **Term:** Key Indicators and Outcomes **Last updated:** 2026-07-29 ## Definition ## What Key Indicators and Outcomes Means in a Contract Key Indicators and Outcomes is a defined term used to point to a specific schedule, commonly Schedule 2 Part 2, where the parties have set out measurable standards against which performance is judged. Rather than leaving performance obligations vague or subjective, the contract incorporates a concrete list of metrics and expected results that both sides agree to use as the benchmark for success or failure under the agreement. This concept is especially common in service-based and outcome-driven contracts, where one party is engaged to deliver a result rather than simply perform an activity. By referencing a schedule rather than embedding the detail in the main body, the drafters keep the core agreement readable while allowing the operational detail to be updated, reviewed, or renegotiated without amending the entire contract. The term functions as a bridge between the legal obligations described in the clauses and the practical, often numerical, criteria used day to day to assess whether those obligations have been met. It gives both parties a shared reference point for discussions about performance, payment, and remedies. ## How Key Indicators and Outcomes Is Defined or Measured In most agreements, the schedule referenced by this term will contain a table or list identifying each indicator, the method of measurement, the frequency of reporting, and the target or threshold that must be achieved. Indicators might include response times, error rates, completion percentages, quality scores, or other quantifiable data points relevant to the subject matter of the contract. Outcomes, by contrast, often describe the broader result the indicator is meant to demonstrate, such as improved efficiency, reduced downtime, or successful project completion. The distinction matters because indicators are usually the raw measurements, while outcomes are the conclusions drawn from those measurements when compared against agreed targets. - Definition of each metric and how it is calculated - Data sources and reporting frequency - Target thresholds and acceptable variance - Consequences of failing to meet a threshold Because these details are technical and may need periodic recalibration, many agreements allow the schedule to be updated by mutual written agreement without reopening the main contract terms. ## Where Key Indicators and Outcomes Appears in Agreements This term typically appears in service agreements, outsourcing arrangements, consultancy engagements, and public sector contracts where performance monitoring is central to the relationship. It is frequently linked to clauses on payment, service credits, termination rights, and review meetings, since the indicators often determine whether a party has met its obligations well enough to avoid penalties or trigger bonuses. Industries that rely heavily on measurable service delivery, such as [healthcare](https://www.genieai.co/industry/healthcare) and [construction](https://www.genieai.co/industry/construction), often use detailed schedules of this kind to track quality and safety benchmarks throughout a project or contract term. The same structure appears in technology and outsourcing deals, where uptime, response times, and resolution rates are common indicators. The clause referencing Key Indicators and Outcomes usually sits within a performance management or service levels section of the agreement, cross-referring to the schedule where the substantive detail is recorded. ## Why the Exact Wording Matters Precision in how this term is defined and cross-referenced is essential, because ambiguity about which indicators apply, or how they are measured, can lead to disputes about whether performance obligations have actually been satisfied. If the schedule is poorly drafted or inconsistent with the main body of the agreement, parties may disagree about whether a shortfall in one indicator affects the overall assessment of outcomes. Careful wording also affects remedies. Contracts often tie service credits, rights to terminate, or escalation procedures directly to failures against these indicators, so any lack of clarity about thresholds or measurement periods can undermine the enforceability of those remedies under the law governing the contract. Reviewing this schedule carefully is a key step in [building contracts: what to watch out for](https://www.genieai.co/blog/building-contracts-what-to-watch-out-for), since performance schedules are among the most frequently overlooked yet operationally significant parts of an agreement. ## Drafting Considerations When drafting or reviewing a schedule of Key Indicators and Outcomes, parties should ensure that each metric is objectively measurable, that data sources are reliable and accessible, and that the consequences of missing a target are clearly linked back to the relevant clauses in the main agreement. Vague or aspirational language should be avoided in favor of specific, quantifiable criteria. It is also important to consider how often the schedule can be reviewed or amended, who is responsible for reporting, and how disputes about the data itself will be resolved. Aligning this schedule with related governance and reporting functions can support smoother oversight, which is why [risk management teams](https://www.genieai.co/legal-ai-for-teams/risk-management) are often involved in reviewing and updating these provisions. Finally, drafters should check that terminology used in the schedule matches terminology used elsewhere in the contract, since inconsistent labeling between the indicators, the outcomes, and the clauses that rely on them is a common source of later disagreement. ## Context ### Relevant circumstances - When contract performance is measured against a defined set of KPIs - If success or remediation depends on hitting the agreed outcomes - Where the customer can vary KPIs through the change procedure ### Relevant sectors - Healthcare - Construction ## Relevant contract types - [Service Agreement](https://www.genieai.co/en-us/template-type/service-agreement) - [Sale Agreement](https://www.genieai.co/en-us/template-type/sale-agreement) - [Partnership Agreement](https://www.genieai.co/en-us/template-type/partnership-agreement) --- This is the Markdown representation of [https://www.genieai.co/en-us/define/key-indicators-and-outcomes](https://www.genieai.co/en-us/define/key-indicators-and-outcomes), provided for AI agents and crawlers. The HTML page is canonical. See [/llms.txt](https://www.genieai.co/llms.txt) for the full content map.