Course details

Overview ?

The Course

Current and future leaders in Contract and Procurement functions are expected to be experts in world-class buying and contract practices. This two part fast paced program is designed to provide Contract and Purchasing Leadership not only with strategies, concepts, and techniques generally viewed as leading to World-Class performance in contracts and procurement activities but also to provide enthusiasm and guidance in how to "make it happen".

Since a major portion of every organization's operating cost is spent on outside goods and services, executive management everywhere is determining that Contracts and Purchasing must emerge as a core competency if organizations are to decrease expenses while improving operations. This seminar is designed to explore many of the best practices in Contracts and Purchasing so that participants can determine where they are now and begin implementation of the steps needed to create maximum total value for their organization.

The Structure

Module 1 - The Complete Course on Contracts Management

Module 2 - The Complete Course on Purchasing Management

The Goals

This programme will give you:

Discuss elements of good contract process
Learn methods of tender evaluation
Review contract strategies
See examples of important commercial contract clauses
Be presented the essential elements of a contract
Be given examples of contract checklist
Learn how to develop high performance purchasing organizations
Develop strategic purchasing plans
Be taught how to develop spend profiles and perform analysis to guide strategies
Explore many ways of reporting key performance indicators (KPI
Be presented with the most important competencies for contract and purchasing personnel

The Delegates

Contracts, Purchasing, and Project personnel
Engineering, Operational, and Maintenance personnel
And all others who are involved in the planning, evaluation, preparation and management of tenders, awards, contracts and purchases that cover the acquisition of materials, equipment, and services and who are in organizations whose leadership want high levels of competency in those involved in contracts and purchasing activities

The Process

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, review of published articles, and group discussions covering current practices and their relationship to the implementation of new concepts.

The Benefits

Increased skill sets in managing a purchasing and contract activities
Greater ability to develop professionalism
Greater job satisfaction and progress toward advancement
Increased Knowledge about Contract Terms and Conditions
Greater ability to lead, plan, and manage the contract process
Increased recognition by the organization due to improved performance

The Results

Having expert Procurement & Contract personnel leading and guiding the procurement process
Continuous improvement in total cost of materials & services
Higher productivity of personnel involved in procurement activities
Improved performance of contractors and suppliers
Better ways to measure performance of procurement and contract groups
Better integration between functions resulting in shorter cycle-time

The Core Competencies

Management and Control of Contracts
Evaluating Contract Prices & Drafting Contracts
Economic Price Adjustment Clauses
Developing spend analysis to focus improvement initiatives
Cost Containment strategies & Reducing low value activities
Procurement measurements that really define performance

The Programme Content

Module 1:

The Complete Course on Contracts Management

What are contracts and how are they created?

The need for contractual relationships
What is needed to create a valid contract?
Offer and acceptance
Intention to create a legal relationship
Written or oral?
Other legal formalities in different countries
Signing and sealing
Witnesses
Authority to sign
How to prove authority
The tender process
Involvement of agents
What happens if there is no contract, but work is carried out anyway?
Making contracts enforceable – with particular emphasis on the international context

Structure of Contracts

Form of Agreement
General Terms and Conditions
Special Terms and Conditions
Schedules or Appendices
Title (ownership) and risk of damage
When does it transfer?
Use of ICC INCOTERMS
Notices and other formalities
Which law and which courts?
Different contractual structures
Traditional
New structures used in the Middle East
New structures not widely used in the Middle East

Collateral Documents

Bonds and guarantees
Tender Bonds
Advance Payment Bonds
Performance Bonds
Warranty Bonds
Parent Company Guarantees
Retention/Withholding
Retention Bonds
Letters of intent
Letters of award
Letters of comfort or awareness
Types
Who should carry the cover?
How should you manage claims?
Are banks or insurance companies good enough security?
Insurance policies
Assessing the need for financial security in the current economic climate

Changes to the Contract Documents
Need for consent
Assignment/Novation explained and distinguished
Waiver
Changes to the scope
Variation clauses
Notice provisions
Valuation of variations and changes
Claims – what they are, and how they arise
Delay caused by client
Delay caused by contractor/supplier
Force majeure
Delay and disruption

Resolving Disputes

Negotiation
Staged dispute resolution clauses
Litigation
Arbitration
New best practices in dispute resolution
Mediation
Conciliation
Early neutral evaluation
Expert determination
Mini-arbitration
Pendulum arbitration
Final questions and review of course

Module 2:

The Complete Course on Purchasing Management

The 1st Steps To Becoming World Class

4 Stages To World Class
Let’s be honest of how Purchasing is viewed today
Strategic Sourcing
Developing Spend Profiles and the ABC Analysis
New Job Descriptions For Purchasing of the future
Purchasing Personnel Required Skill Sets

Evaluating Your Own Operation

What are best Practices
Purchasing Gap Analysis
Vision and Mission for Purchasing
Developing The Purchasing Department Strategic Plan
Developing Key Performance Indicators (KPI) For Procurement
Developing A Company Purchase Price Index

Continuous Improvement and How To Get It

Cost Reduction Initiatives
Methods of Cost Containment
Waste In The Supply Chain
Breaking Down The Elements Of Supplier Cost
Commodity/Service Strategic Planning
Resisting Price Increases

Supplier Classification System
Supplier Qualification Methods
Supplier Performance Metrics
Apply Performance to Purchasing Decisions
Process Mapping To Eliminate Low Value Activities
eProcurement

Improving the Image of Procurement

Global Sourcing
International Labor Rates Comparison
Developing And Maintaining A Customer Focus
Basic Issues In Corruption And Fraud Prevention
Increasing The Level Of Procurement Professionalism
Keeping Current in the profession

Day 1

Day 2

Day 3

Day 4

Day 5

Training Methodology

The Complete Course on Contracts & Purchasing Management

Course details

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