Since the contract is at the core of all commercial transactions it is understandable that contracts management is a core competency of all successful organisations. World-Class organisations understand well the benefits of increased profits and higher productivity resulting from mastering best practices in the important phases of contract management.

This seminar provides both strategic and practical insights into:

• Negotiations,
• Price and Cost analysis
• Managing risk through contract types,
• Critical source selection,
• Contract administration and claims disputes

Participants attending the program will gain from:

• 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

• 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, reviewing published articles, checklists, and group discussions covering current practices and their relationship to the implementation of new concepts.
• Attendees are encouraged to present problems for discussion on a confidential basis, and to share their experience of particular issues in their company or industry. A supportive comprehensive course manual, in both printed and CD form, enabling practical application and reinforcement is provided. Time will be allowed for general discussions, and for one-to-one discussion with the senior consultant.

The organization will benefit by:

• Having better outcomes in commercial transactions.
• Having better trained contract personnel leading and guiding the contracting process.
• Continuous improvement in customer service.
• Higher productivity of personnel involved in contract activities.
• Making contracting a high value added process.
• Improvements in the performance of contractors.

Attendees will gain by participation in this program through:

• Mastering skills in managing contract activities
• Improved negotiation skills
• Greater ability to develop professionally.
• Increased job satisfaction.
• Receiving increased recognition by their organization leading toward advancement
• Greater confidence in leading, planning, and managing the entire contract process.

DAY 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, 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 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

DAY 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

DAY 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

DAY 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