Course details

Overview ?

Introduction

Since the contract is at the core of all commercial transactions it is understandable that contracts management is a core competency of all successful organisations. World-Class organisations understand well the benefits of increased profits and higher productivity resulting from mastering best practices in the important phases of contract management.

This seminar provides both strategic and practical insights into:

Negotiations,
Price and Cost analysis
Managing risk through contract types,
Critical source selection,
Contract administration and claims disputes

Objectives

Participants attending the program will gain from:

Developing negotiation skill sets to gain the organisation’s objectives
Understanding important aspects of price and cost analysis
Exploring the various pricing models used in preparing proposals
Learning about contract types and how they transfer risk
Dealing with volatile materials pricing
Evaluating Performance-Based Service Contracting Methods

Training Methodology

Participants will increase their knowledge base and skill sets through a variety of instructional methods including lecture by an experienced practitioner and consultant who has “been there-done that”, individual and group exercises, reviewing published articles, checklists, and group discussions covering current practices and their relationship to the implementation of new concepts.
Attendees are encouraged to present problems for discussion on a confidential basis, and to share their experience of particular issues in their company or industry. A supportive comprehensive course manual, in both printed and CD form, enabling practical application and reinforcement is provided. Time will be allowed for general discussions, and for one-to-one discussion with the senior consultant.

Organisational Impact

The organization will benefit by:

Having better outcomes in commercial transactions.
Having better trained contract personnel leading and guiding the contracting process.
Continuous improvement in customer service.
Higher productivity of personnel involved in contract activities.
Making contracting a high value added process.
Improvements in the performance of contractors.

Personal Impact

Attendees will gain by participation in this program through:

Mastering skills in managing contract activities
Improved negotiation skills
Greater ability to develop professionally.
Increased job satisfaction.
Receiving increased recognition by their organization leading toward advancement
Greater confidence in leading, planning, and managing the entire contract process.

SEMINAR OUTLINE

DAY 1

Contracting and Negotiations Planning

Elements of a Good Contracting and Procurement Process
Role of Negotiation
Negotiation—What Is It?
Characteristics of a Good Negotiator
Basic Rules of Negotiation, Part 1-A quote is never a concrete number
Basic Rules of Negotiation, Part 2-The best prepared wins
Basic Rules of Negotiation, Part 3-Have many issues and a BATNA
Negotiation Nuggets

DAY 2

Financial Management and Risks

Cost and Pricing
Cost Analysis
Allocating Overheads
What is a Fair Profit
Developing “Should Cost”
Pricing Models
Risk Assessment
Managing the Risks

DAY 3

Contract Types and Payments

Contract Risk Sharing Continuum
Types and Guidelines for progress payments
Implications of Contract Types
Fixed Price and Cost-Reimbursement Contracts
Economic Price Adjustment Clauses
Understanding and Using Producing Price Indexes
Invoices and Payments
Parties to Letter of Credit

DAY 4

Source Selection and Contract Development

When and why to use Performance Based Contracting
Processes for Source Qualification
Methods of Contracting
Developing Prequalification and Tendering Criteria and Applying Standards for Final Selection
Rules for Drafting the Contract
Terms & Conditions
Forming the Contract
Essential Elements

DAY 5

Contract Administration

The Critical Integration or Entire Agreement Clause
Post Award Functions - Overview and Responsibilities
Contract Administration Duties
Contract Modifications
Rules of Contract Interpretation
Contract Disputes
Termination
Contract Close-Out

Day 1

Day 2

Day 3

Day 4

Day 5

Training Methodology

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