Course details

Overview ?

Introduction

Consultants and Contractors can be a very effective option for all types of organizations. However, managing those individuals (or companies) is essential in achieving the desired costs and benefits your organization desires.

This programme is designed to provide knowledge in:

Sourcing & Selecting Consultants & Contractors
Issues to be considered before the Tender Invitation and Key contractual clauses
Raising the Invitation and Managing the Tender Process
Contract type and language for best outcome with Consultants and Contractors
Developing “Statements of Work” and Service Level Agreements as contract documents
Monitoring, measuring Consultant and Contractor performance and Negotiations with Consultants and Firms Supplying Contractors

Objectives

Upon completion of this seminar, participants will know:

How to evaluate bids and proposals
What key clauses to include in contract documents
Structure and application of incentive arrangements
Best Terms & Conditions to protect your company
Negotiation Planning and Strategy
Monitoring and measuring Consultants and Contractors performance

Training Methodology

The training methodology will incorporate both theory and skill training components, utilizing both traditional lectures, as well as hands-on exercises, group discussions and case studies.

Organisational Impact

The organization will benefit by:

Reduced cost of Contracts for Services
Improved performance from Consultants and Contractors
Reduced Risk to the organization from potential liabilities
Higher productivity from personnel contracting for services
Greater strategic focus of personnel contracting for Consultant and Contractor Services
Improved control over on-time and on-budget delivery

Personal Impact

Attendees will gain by participation in the seminar as a result of:

Increased skill sets in the management of Consultants and Contractors
A greater sense of Professionalism
Knowledge of World-Class practices
Greater ability to negotiate and manage contracts
Increased recognition by the organization because of improved performance
Ability to control project progress and delivery against baseline

SEMINAR OUTLINE

Establishing Contractual Relationships with Consultants and Contractors

Introductions
Purpose of the programme and objectives

Defining the Difference between Consultants and Contractors

Role of Consultants & Responsibilities to Buyer
Role of Contractors & Responsibilities to Buyer

Defining the Relationship with Consultants and Contractors

Length of contract with consultant or contractor
Type of work to be accomplished
Reason for contracting out the work

Consultants & Contractor Firms Pricing Strategies

Top Down Strategy - Market based
Bottom Up Strategy - Cost recovery based

Sourcing & Qualifying Potential Consultants and Contracting Firms

Basic planning assumptions
Proactive sourcing & project scheduling
Use of the Internet
References from other known past users

Defining the Scope

Statements of Work (SOWs) – work packages
Service Level Agreements (SLAs) – Key Performance Indicators (KPIs)
Importance to overall success
Clear and Concise to both Buyer and Consultant/Contractor
Establishing Milestones for future progress reporting

The Bidding and Bid Evaluation Processes

Invitations to Tender (ITT)/Requests for Proposals (RFP)/Requests for Quotation (RFQ)

What type of request is best for a situation
Why use competition?

Proposal/Bid Evaluation

Bid evaluation schedule
Compliance matrix
Terms & Conditions Analysis
Factors that Affect Comparability

Contract Pricing & Price Adjustments

Fixed price or firm price?
Costs Plus (Time & Materials); Incentive based pricing
Contract Price Adjustment Criteria & Clauses
Price Adjustments using Price Indices
Price vs. Quality Factors – Value for Money

Cost Analysis of Proposals/Bids

Reasons for Cost Analysis
Requesting Additional Cost Information from Bidders
Cost Estimating Methods

Negotiations and Contract Development

Negotiations Strategies and Techniques

Supplier/Buyer Positioning – pre-cursor for the negotiation strategy
With Consultants
With Firms supplying Contractors
How to Negotiate with Sole Source
Incentive Arrangements – Structure and Application

Model Contract Formats

Formats for Consultants
Formats for Contractor Firms
Important Contract Articles

Financial considerations

Specifics of items included in base price
Definition of expenses not included in base price
Hourly/Daily/Weekly/Project rates

Progress Reporting and Payment

Payment based on Milestones Achieved not Stage Payments (elapsed time)
Payment terms – When, Where, How, Currency Net payment terms and currency

Termination of Contract

Reasons for termination – Both Parties
Processes of terminating

Confidentiality, IPR, Insurance and Warranties

Confidential Information & Non-Disclosure

Need for Pre-contract arrangements
Access to confidential or proprietary information
Agreement not to use or divulge
How long in force after contract is complete

Insurance Coverage

What is insurable?
How much insurance required?
Nature of proof of insurance and possible impact
What type of coverage
Who bears the cost – Consultant/Contractor Firm or Buyer

Intellectual Property Rights

Definition of IPR - Patents, Design Rights, Trade Marks & Copyright
Background & Foreground Rights
Ownership rights and assignment

Warranties and Representations

No Conflict with Consultant/Contractor other work
Consultant/Contractor agrees to perform in professional manner

Restrictive Covenants

Consultant/Contractor will not provide like services to Buyer’s competitors
Will not publish without prior written consent of Buyer
Will not use in advertising, sales promotion or publicity without prior consent

Contract Award and Performance Evaluation

Awarding of Contract

Contract formation & contract effectiveness conditions
Notification of successful bidder
Notification of unsuccessful bidders
Official signatures and start dates

Monitoring and Measuring Consultant Performance

Performance based on Statement of Work
Milestones and progress against them
Project Management Processes

Monitoring and Measuring Contractor Performance

Performance based on Statement of Work
Individual project performance
Work expectations

Contract Administration

Ensuring performance of Consultant/Contractor as Invoiced
Resolving issues/problems from either party
Preparation for Renewing Agreement
Preparation for Terminating Agreement

Final Learning Review and analysis

Delegate feedback forms
Analysis against objectives

Day 1

Day 2

Day 3

Day 4

Day 5

Training Methodology

Managing & Negotiating with Consultants & Contractors

Course details

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