Contracts are widely used in mining to provide self motivation in an environ- ment of isolated work places. Which incentives to use and how to implement them has long been the subject of numerous discussions. The mines operated by Australian Mining and Smelting at Broken Hill have evolved several guidelines to follow when developing contracts._x000D_
Identify the main purpose of the work and use this as the basis of measurement for the contract. Therefore stoping achievement would be measured by tonnes extracted, development by metres driven. Paying for other work activities such as standing timber in timber stoping must detract from the percentage of the total contract paid per tonne produced. Concentrating on the main activity and applying the majority of contract pay to that task reinforces at is beneficial to both the miners and the whole operation.