Introduction:
Since the contract is at the core of all commercial transactions, understandably, contract management is a core competency of all successful organizations. World-Class organizations understand well the benefits of increased profits and higher productivity resulting from mastering best practices in the important phases of contract management.
Targeted Groups:
- Contract Professionals
- Tendering, Purchasing and Procurement Professionals
- Project Management Professionals
- Engineering, Operational, Finance, and Maintenance Professionals
Course Objectives:
At the end of this course the participants will be able to:
- Develop negotiation skillsets to gain the organization’s objectives
- Understand the important aspects of price and cost analysis
- Explore the various pricing models used in preparing proposals
- Learn about contract types and how they transfer risk
- Deal with volatile materials pricing
- Evaluate Performance-Based Service Contracting Methods
Targeted Competencies:
- Negotiations
- Price and Cost analysis
- Managing risk through contract types
- Critical source selection
- Contract administration and claims disputes
Course Content:
Unit 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:
- A quote is never a concrete number
- The best-prepared wins
- Have many issues and a BATNA
- Negotiation Nuggets
Unit 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
Unit 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
Unit 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
Unit 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
