This paper examines the use of incentive schemes among real estate firms in Sweden. The investigation was done using a postal questionnaire survey. The study confirms private sector firms are more likely to use incentive contracts than firms in the public sector. The study also suggests that firms employing a large number of employees are no more likely to use incentives than small firms. Annual bonuses are more important incentive items across all levels within the organisation for firms that use incentive contracts. There are as yet no industry-wide standards for measuring performance.