Contract Management Principles And Practices

Contract Management Principles And Practices

OBJECTIVES

By the end of this training course, participants will be able to:

• Provide better outcomes from contracts
• Monitor contract performance
• Know how to analyse contract obligations and risks
• Prepare for contract claims and disputes
• Control variations to contract
• Manage contract default, and consider remedies including termination

WHO SHOULD ATTEND?

• Contracts, Purchasing, Project and Legal personnel
• Engineering, Operational, and Maintenance personnel
• And all others who are involved in the planning, evaluation, preparation and management of tenders, awards, and contract performance 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 One: Introduction to Contract Management

• What is Effective Contract Management and why do we need it?
• The causes and effects of contract failure
• Analysis of the Contract requirements
• Defining the Job to be done – specifications and the scope of work
• Key Players in Contract Management

Day Two: Managing Contract Risks

• Identifying risks affecting time, cost and quality
• Responses to risk
• Contract Types and how they manage risk
• Important contract clauses about risk
• Using Bonds and guarantees
• Contract templates: FIDIC, NEC and other standard models

Day Three: Establishing the Framework for Contract Performance

• Building a relationship for supplier performance
• Motivational techniques – carrots and sticks
• Contractor warranties
• Monitoring service performance
• Service Level Agreements
• Tools and techniques for contract default

Day Four: Best Practices around Price and Cost issues

• Setting the supplier’s agenda on costs and prices
• Cost and Price analysis methods
• Using economic price adjustment techniques
• Price transparency and cost breakdowns
• Managing the financial impact of contract variation
• Negotiation techniques for improving value for money

Day Five: Contract Management and Administration

• Handling contractor claims
• Operating the liquidated damages clause
• Preventing or resolving disputes
• Handling defect liability and retention sums
• Contract administration tasks from award to close out
• Contract termination and handover