MASTERING CONTRACTS MANAGEMENT
Course Code: LT10
Course Objective
- 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
Target Audience
- Contracts, Contract Administration Professionals
- Tendering, Purchasing, Project Management Professionals
- Engineering, Operational, Finance, and Maintenance Professionals
- Others who are involved in the planning, evaluation, preparation and management of tenders, specifications, awards, and contracts 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 these activities
Course Outline
DAY 1: Good Contracting and Procurement Practice
- Elements of a Good Contracting and Procurement Process
Risks and Financial Management
- Assessing risk
- Cost and Pricing
- Cost Analysis
- Allocating Overheads
- What is a Fair Profit
- Developing “Should Cost”
- Pricing Models
- Risk Assessment
- Managing the Risks
DAY 2: Contract Types and Payments
- Managing risk
- 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 3: Source Selection and Contract Development
- Processes for Source Qualification
- Developing Prequalification and Tendering Criteria and Applying Standards for Final Selection
- Rules for Drafting the Contract
- Terms & Conditions
- Forming the Contract
- Essential Elements
- Use of Performance Based Contracting
DAY 4: Contract Negotiations
- 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 5: Contract Administration and Close Out
- The Critical Integration or Entire Agreement Clause
- Post Award Functions – Overview and Responsibilities
- Contract Administration Duties
- Contract Modifications
- Scope of Work Variations
- Rules of Contract Interpretation
- Contract Disputes
- Termination
- Contract Close-Out
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