COURSE OVERVIEW

 This practical and highly-interactive course includes real-life case studies and exercises where participants will be engaged in a series of interactive small groups and class workshops. 

 

Successful sourcing relationships are based on careful and detailed preparation before the contract is signed. Both parties need a clear understanding of the type of relationship desired. Sourcing contracts can consist of anything from a brief document with a price list attached, to hundreds of pages of legal documentation, terms, schedules, and flow charts. Initiating and managing contracts can be a complex process that requires a thorough understanding of specific planning and procurement activities. As such, contract management is a systematic process in the purchasing and selling of services and products that involves specific phases and associated activities, including: Planning and Procurement, Award and Implementation. 

 

The right Contract Strategy is the primary factor in determining contractor performance. It defines the way work will be allocated among contractors, the type of contractors to use, form of contracts (e.g.., lump sum or reimbursable cost), the allocation of risks, and how benefits or incentives will be used. 

The optimum contract strategy is unique to each project, and must reflect cost and savings objectives, the level of scope definition, prevailing market conditions, technology involved to be managed, location, specialized skills and services required, and the allocation of responsibilities between owner and contractor. 

 

This course will focus on the key contract management phases and activities from both the buyer's and seller's perspectives. It will provide you with the practical knowledge and understanding of the contract procurement process, through interactive discussions and group exercises, focusing on realistic contracting examples and situations. You will be given guidelines and checklists to assist in your contract planning and management. 

 

The course will cover strategic planning within an organization and the importance of its relationship to procurement planning. Planning models will be discussed as budgeting. Developing key partnerships within the organization in requirements determination will be explored, as this will lead to the development of proper specifications. Pricing strategies such as cost analysis and life cycle costing will also be covered. The intent is for the participant to develop a strong understanding of the complexities of contract administration and recognize the importance of planning, monitoring, and proactive insight into and oversight of contract performance. 

 

Further, the course is designed to help participants fully realize the risks of conflicts and disputes associated with the contract during its different phases, and to define and fully understand the parties' obligations to mitigate such risks. Participants will learn how to develop the necessary management and mitigation measures to avoid the negative outcomes of such conflicts and how to implement them in the General and Particular Conditions of contract during the contract planning stage. They will also learn how to select procurement strategies and procedures for dispute avoidance and how to select the best contractor for the job. Participants will also be presented with the pre-contract award activities needed to reduce the potential of conflict during project execution.