“Contracts impact on every part of your company. They are your lifeblood. Legally binding Contracts protect you and your company from all malicious intents of others, be they vendors, competitor, or even your own employees. It is a shield for your business.”
BOB NELSON (Founder / President)
US-based NELSON MOTIVATION Inc.
Recognized by FORBES, in 2024, as one of the
10 Top Management Gurus in the world today.
INTRODUCTION
- This Contract Management training program is part of our Specialist Skills Training Series.
- We begin by assuring our participants that Contract Management is not tedious; it is not stodgy; it isn’t boring. Contract managers contributed to the construction of ALL dams, ALL airports, ALL big skyscrapers, and ALL the highway system in the world. Surprised?
- All world-class public and private organizations know that purchasing does not end when the contract is awarded. In fact, the fun ends there and serious work begins because Contract Management is the process of managing contracts, deliverables, deadlines, contract terms and conditions while ensuring customer satisfaction.
COURSE OBJECTIVES
This highly interactive 3-day program aims to achieve the following key objectives:
- 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
PERSONAL IMPACT OF THE PARTICIPANTS TO YOUR ORGANIZATION
The participants on this training course learn to:
- Identify the major skills that are critical for contract professionals
- Develop project plans to manage contracts and deal with deviations effectively
- Outline the key risks that can affect the contract and determine the appropriate responses for the identified risks
- Develop criteria for monitoring and controlling contractors’ performances and identify effective Key Performance Indicators (KPIs) for these criteria
- Demonstrate the importance of communication in contract management including written, verbal and non-verbal
- Prepare for negotiating contracts and conduct contract related negotiations in a formal structured manner
COURSE CONTENTS
This is a 5-day Workshop and is divided into the following 5 training Modules:
ICE BREAKING MODULE – ACTIVITY TO INTRODUCE CONTRACT MANAGEMENT – 30 Minutes
MODULE 1: CONTRACTING & PROCUREMENT PRACTICE
- Introduction to Contract Management
- 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
MODULE 2: CONTRACT TYPES & PAYMENTS
- Glossary of Terms
- 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
MODULE 3: SOURCE SELECTION & CONTRACT DEVELOPMENT
- 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
MODULE 4: NEGOTIATION TECHNIQUES AND PRACTICE
- 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
MODULE 5: CONTRACT ADMINISTRATION
- 5 Key Principles of an Ethically Binding Contract
- 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
CONDUCT OF PROGRAM
The mode and style of conduct will be:
Training
- Participants will increase their knowledge base and skill sets through a variety of instructional methods including lectures and presentations by experienced practitioner, trainer and consultant who has “been there-done that”, individual and group exercises, reviewing, feedbacks checklists, and group discussions covering current practices and their relationship to the implementation of new concepts.
- Attendees are encouraged to present problems for discussion and share experience of particular issues in their company or industry.
- A supportive comprehensive course manual and other study material, in USB form, enabling practical application and reinforcement is provided. Time will be allowed for general discussions, and for one-to-one discussion with the trainer / consultant.
Time Factor
This is a 3-day intensive Workshop; Start and end times are decided in mutual consultation.
CERTIFICATION
Participants are awarded an internationally-recognized Certificate of Merit.