SOP — End-of-Month Contract Completion Bonus Follow
Bonus structure and qualifying criteria for seafarers under contract with DG3
1. Purpose
The purpose of this Standard Operating Procedure (SOP) is to define the criteria, eligibility, and procedure for the End-of-Month Contract Completion Bonus awarded to eligible seafarers. The bonus rewards two things only: completing consecutive contracts in good standing, and protecting the operation through disciplined inventory management. Its central purpose is to tie inventory accuracy and on-time ordering directly to the seafarer's pay, because failures in this area drive avoidable emergency-shipping cost.
2. Scope
This SOP applies to all seafarers under contract with DG3 who are accountable for shipboard inventory and ordering and who meet the eligibility criteria below. It is effective from the date shown above and supersedes all prior versions of the contract bonus SOP.
3. Definitions
- Completion Bonus: A performance-based incentive paid for completing consecutive contracts in good standing, subject to the gates and scorecard in this SOP.
- Consecutive Contract / Streak: An uninterrupted sequence of contracts completed in good standing. The streak determines the seafarer's position on the bonus ladder (Section 4).
- Ordering Calendar: The documented schedule of order dates issued to each ship. On-time ordering is measured against this calendar.
- Par List: The documented minimum stock levels for each ship. A stockout of any par-list item is a par-level failure.
- Rush / Emergency Shipment: Any unplanned expedited shipment required because an order was missed, late, incomplete, or incorrect. Unforeseeable needs outside the seafarer's control (for example, an unpredictable hardware failure requiring an unplanned part) are not rush shipments under this SOP.
- Accountable: The seafarer formally responsible for the inventory and ordering of the ship or area in question. A gate applies only to the seafarer accountable for the failure.
- Evaluation: The supervisor's end-of-contract performance rating on a 1–5 scale. A minimum rating of 3 is required to qualify.
4. Eligibility Criteria
Eligibility is decided in two stages, in order. First, every disqualifying gate must be cleared (Section 4.2). If any single gate is triggered, the bonus for that contract is $0 and the scorecard is not calculated. Second, the performance scorecard must reach the minimum qualifying score of 80% (Section 6). Below 80% pays $0.
4.1 Consecutive Contract Schedule
The bonus begins from the second consecutive contract and increases with each consecutive contract completed in good standing. The figures below are the full-score values — the amount paid at a 100% scorecard. Actual payment is the ladder value multiplied by the scorecard score (Section 5).
| Consecutive Contracts Completed | Contract Completion Bonus (full-score value) |
|---|---|
| Contract 1 | $0 |
| Contract 2 | $250 |
| Contract 3 | $500 |
| Contract 4 | $750 |
| Contract 5 | $1,000 |
| Contract 6 | $1,250 |
| Contract 7 | $1,500 |
| Contract 8 | $1,750 |
| Contract 9 and beyond | $2,000 |
The bonus holds at $2,000 for every consecutive contract from the ninth onward. It does not reset on reaching the top of the ladder; it resets only when a streak-resetting gate is triggered (Section 5).
4.2 Disqualifying Gates
Triggering any one of the following sets the bonus for that contract to $0. The effect on the consecutive-contract streak is shown in the right-hand column and detailed in Section 5.
| Gate | Trigger (any one disqualifies) | Effect |
|---|---|---|
| G1 | Contract not completed in full (early disembarkation, any reason). | Streak resets to zero. |
| G2 | Supervisor evaluation below 3. | Bonus forfeited for this period only. Streak position retained. |
| G3 | Any emergency or rush shipment caused by failure to order on time, correctly, or at all. | Streak resets to zero. |
| G4 | Failed inventory audit for which the seafarer is accountable. | Streak resets to zero. |
Inventory audit outcomes are reviewed and confirmed by the designated auditor, whose report serves as the formal basis for the bonus decision.
5. Bonus Disbursement Procedure
5.1 Timing of Payment
The bonus is processed after handover is completed and verified, once the final inventory audit and the ship-condition checklist can be confirmed. Payment is not released before handover verification.
5.2 Payment Calculation
Payment = Ladder value (Section 4.1) × Scorecard score (Section 6), when the score is 80% or higher. Below 80%, payment is $0.
- Example A: Seafarer on Contract 4 (ladder value $750) scores 90%. Payment = $750 × 0.90 = $675.
- Example B: Same seafarer scores 78%. Payment = $0 — below the floor.
- Example C: Perfect on everything except inventory, where they score 50%. Scorecard = (0.50 × 60) + 40 = 70%. Payment = $0.
Example C is the behavior this SOP is built to stop: strong elsewhere, weak on inventory, paid nothing.
5.3 Streak and Reset Conditions
- Reset to zero — triggered by G1 (contract not completed), G3 (rush shipment from an ordering failure), or G4 (failed inventory audit). The next completed contract restarts the ladder and counts as Contract 2.
- Period forfeited, streak retained — triggered by G2 (evaluation below 3). The bonus for that contract is $0, but the seafarer keeps their ladder position for the next contract.
- Held at maximum — on reaching Contract 9, the ladder holds at $2,000 for each further consecutive contract. There is no reset for length of service.
The harshest consequence — losing the whole ladder — is reserved for the failures that cost the operation the most. A single weak evaluation is recoverable; a missed order that forces emergency freight is not.
6. Bonus Scorecard and Criteria
The scorecard is calculated only when all gates are cleared. The minimum qualifying score is 80%. A score below 80% pays $0, regardless of how strong any individual line is.
| Performance Criterion | Weight |
|---|---|
| Inventory Discipline (detailed in 6.1) | 60% |
| Supervisor Evaluation (scored above the minimum-3 floor) | 15% |
| Ship-Condition Handover Checklist (factual verification) | 10% |
| Communication (rubric-based) | 10% |
| Mono Average Clicks throughout contract < 20% | 5% |
| Total | 100% |
6.1 Inventory Discipline — Scoring Detail
Inventory Discipline is 60% of the scorecard and is scored on behavior, not only on the end-of-contract variance number. The components below measure the actions that prevent emergency shipping in the first place.
| Inventory Discipline Component | Weight |
|---|---|
| On-time ordering — every order placed on each scheduled order date in the ordering calendar | 20% |
| Order accuracy — correct products and correct quantities; no wrong-item orders | 25% |
| Par-level maintenance — no stockouts of par-list items during the contract | 15% |
| Inventory Discipline subtotal | 60% |
Each component is scored against the documented standard for the ship — the ordering calendar, par list, and approved product list. Because every seafarer is issued these tools at the start of contract, responsibility for using them sits with the seafarer.
7. Responsibilities
- Seafarers: Understand this SOP; order on time and correctly against the calendar and par list; maintain inventory accuracy; complete handover.
- Supervisors: Complete the evaluation and scorecard accurately and on time; confirm gate status; raise any issue affecting eligibility before payment.
- Designated Auditor: Conduct the inventory audit; confirm rush-shipment events tied to ordering failures; issue the report that serves as the formal basis for the inventory gates.
- Human Resources (HR): Process disbursement on verified results; maintain records; track streak position per seafarer.
8. Record Keeping
HR maintains all records of evaluations, scorecards, audit reports, streak position, and bonus disbursement for a minimum of three years.
9. Review and Revision
This SOP is reviewed annually, or sooner if operational data indicates the bonus is not changing inventory behavior as intended. Completion-rate and bonus-payout data should be reviewed against emergency-shipping cost to confirm the link is working.
This SOP must be communicated clearly to every seafarer at the start of their contract, so the gates, the scorecard, and the 80% floor are understood before the contract begins.