CONTRACT MANAGEMENT COURSES
Contract Management Principles and Practices Administration of Commercial Contracts Commercial Contract Management Applications Risk Management in the Sourcing Environment
TM
www.esi-emea.com
Contract Management Principles and Practices
Participants will learn how to:
Contract Management
Identify contract components and understand the process from start to finish Select the right contract type for their project Decipher contract legalese Choose the offer that will result in the best value for the buyer
Agree on objectives, requirements, plans and specifications Negotiate favourable terms and make revisions to the contract Apply rules of contract interpretation in project disputes Administer contracts appropriately, and know when and how to terminate before or upon completion
PMBOK Knowledge Areas:
Project Quality Management Project Risk Management Project Procurement Management
Programme Objectives
Project managers, contract managers and other professionals involved in the world of contracts must be able to work effectively together and with customers, contractors and subcontractors to accomplish key organisational objectives. Because contracts are developed in an increasingly complex environment, including the rising use of contracted supplies and services throughout government and industry, a solid understanding of the contracting process is critical and can give you an advantage whether you are on the buyers or sellers side. Get an overview of all phases of contracting, from requirements development to closeout. See how incentive can be used to improve contract results. This course explores these vital issues from the managers perspective, highlighting key roles and responsibilities to give you greater influence over how work is performed. Participants will also discuss actions that can be taken to help ensure that contractors or subcontractors perform as required under the contract. Lectures are combined with case studies, exercise and negotiation role-playing to maximise the learning experience. Plus, participants will receive a comprehensive course materials package, including reference materials specific to each unit of the course. Effective contract negotiation and administration can ensure project success, speed performance, and reduce risks and costs along the way. Discover the keys to contracting from your perspective in this practical course.
Course Outline
Understanding the Contract Management Process
Contract management definition Description and uses of contracts Buyer and seller perspectives Contract management and the PMBOK Guide Sealed bidding, two-step sealed bidding, competitive negotiation and competitive proposals Reverse auctions Purchase agreements vs. contracts Single-source negotiation vs. sole-source negotiation
Award Phase
Source selection process Selection criteria: management, technical and price criteria Evaluation standards Evaluation procedures Negotiation objectives Negotiating a contract Tactics and counter-tactics (buyers vs. sellers) Document agreement or walk away
Teamwork Roles and Responsibilities
Concept of agency Types of authority Privity of contract Contractor personnel
Developing Contract Pricing Agreements
Uncertainty and risk in contract pricing
Concepts and Principles of Contract Law
Mandatory elements of a legally enforceable contract Terms and conditions Remedies Interpreting contract provisions
Categories and types of contracts Incentive Fixed-price Time and materials Cost-reimbursement
Contract Administration
Key contract administration policies Continued communication Tasks for buyers and sellers Contract analysis Performance and progress Records, files and documentation Managing change Resolving claims and disputes Termination
Selecting contract types
Pre-award Phase
Buyer activities Plan purchases and acquisitions Plan contracting Request seller response
Contracting Methods
Contracting methods competitive and non-competitive Purchase cards, imprest funds or petty cash
Seller activities Presales Bid/no-bid decision Bid or proposal preparation Understanding the PMBOK Guide
Tel: +44 (0) 20 7017 7100
www.esi-emea.com
Administration of Commercial Contracts
Participants will learn how to:
Contract Management
Effectively prepare for contract administration Avoid common problems and reduce risk Apply best practices of payment management, quality assurance and completion criteria and acceptance
Manage the change process more effectively Resolve disputes quickly and reduce costs Manage contracts to increase profitability
Programme Objectives
This course provides practical, in-depth guidance on both carrying out the routine but vital responsibilities of contract administration and handling the challenges that typically arise during the life of a contract. Participants will learn how to use a proactive team approach to successfully administer contracts of all types and sizes to increase profitability and improve customer satisfaction. This course introduces and clarifies basic contract administration principles, policies, responsibilities, and proven best practices. Using this foundation, participants will then learn how to get contract performance off to a good start through planning and kick-off activities. Participants will also learn the importance of documentation and which specific types of records and files must be maintained to protect their organisations interests. The course is highly interactive, using discussion, exercises and case studies to teach effective approaches to analysing contract terms and conditions, assuring quality, managing changes, resolving disputes and remedying inadequate performance. Participants will also see how different legal systems affect contract administration practices.
Course Outline
Contract Administration: A Proactive Process
Purpose of contract administration Main tasks in contract administration Contract administration realities Contract administration is a team effort Buyers perspective vs. sellers perspective
Changes Management Risk vs. Opportunity
Types of changes Analysing impacts Principles of changes management Identification Authorisation Estimation Negotiation Documentation Implementation Dos and Donts Delegation of authority issues
Invoice and Payment Management Cash is King
Payment objectives Payment procedures
Contract Administration: Planning - Who Does What, Where, and When
Contract work breakdown structure (CWBS) as a tool Responsibility matrix Schedules Contract administration plans are a must Pre-performance meetings Internal kick-off meeting Meeting with the other party -
Types of payments Advance payments Progress payments Partial payments Final payments
Invoice Preparation Early payment discounts Late payment penalties
Monitoring Progress Tools and Techniques
Performance observation Progress reports Performance variances Records Corrective action
Terminations What to Know, What to do
Mutual agreement Default or cause Notification - what to say Settlements
Dispute Avoidance and Resolution - A Proactive Approach to Problem Solving
Open communication is critical Early identification of potential problems Measure/assess potential impacts Seek prompt resolution Importance of documentation Rules of contract interpretation Dispute resolution methods Negotiation Mediation Arbitration Litigation
Contract Closeout Final Actions
Administrative closeout Completion of work Closeout checklists Lessons learned database
Quality Assurance and Acceptance What Works
Inspections and tests ISO 9000 series ISO 9001 and ANSI/ASQC Q91 and Q94 Acceptance methods - what is best Acceptance criteria - what to do Types of warranties Warranty issues - cost vs.risk
Tel: +44 (0) 20 7017 7100
www.esi-emea.com
Commercial Contract Management Applications
Participants will learn how to:
Contract Management
Apply team-building strategies in a contract management environment Analyse an RFP and evaluate the risk vs. opportunity
Put together a winning proposal Plan and conduct contract negotiations Apply contract administration best practices in a real-world situation
Programme Objectives
By synthesising, reinforcing and building on the competencies gained in the other courses, this highly concentrated course is a complete guide to applying the skills and knowledge participants have gained. Working in teams, participants will complete an extensive and realistic simulation in which they confront challenges typical of those that arise throughout the life cycle of a contract. Their team will identify and analyse problems, weigh alternative solutions, make trade-offs and take action based on their decisions. Participants will also confront issues involving communication difficulties, internal conflicts, conflicting assertions of fact, clashing contract interpretations, ethical dilemmas, unexpected events and unreasonable customer demands. Each phase of the simulation is the subject of group discussion and evaluation. Participants will leave the programme with firsthand experience in managing a wide variety of situations through a multi-functional team approach. Reminder: If participants choose to take Commercial Contract Management Applications, it is required that they first complete the two mandatory sourcing management courses, Managing Projects and Contract Management Principles and Practices. Also, it is strongly recommended that they take this course as their final capstone course.
Course Outline
Team Building
Project assignment Initial project assignment Team ownership Organisational assessment: working with what you have Staffing Resources Management support Options assessment Pre-emptive troubleshooting Historic review
Negotiation/Agreement
Pre-negotiation planning Fact finding Issue development Position development Strategy development
Contract Administration Real-Life Challenges
Kick-off meeting Performance problems Interpreting contract requirements Reporting progress Managing changes Negotiations Dispute resolution Invoicing and payments Acceptance Warranties Documentation of lessons learned
Negotiation Exploratory session Joint-gain resolution
Pre-proposal Analysis and Planning
Analysing the market Assessing risk vs. opportunity Building the team and reviewing roles Developing a plan to complete the proposal -
Post-negotiation actions Memoranda of understanding and letters of intent Communication Pre-contract agreements
Contract Formation
Delivery schedule Products and services - statements of work and specifications Payment Other terms and conditions Signed contract
Contract Closeout
Completion of work Final settlement Continuing obligation
Preparing a Winning Proposal
Evaluating the requirement Evaluating terms and conditions Obtaining the teams commitment Writing the winning proposal Delegating to team members Managing time constraints
Pre-performance Planning
Project kick-off meeting Goals Participants Principal points Project planning
Lessons Learned and Best Practices Summary
Individual assessments Team assessments
Proposal Evaluation and Source Selection
Evaluation methods Scoring and selection
Tel: +44 (0) 20 7017 7100
www.esi-emea.com
Risk Management in the Sourcing Environment
Participants will learn how to:
Contract Management
Manage risk in a sourcing environment Use ESIs Risk Management Model to identify, analyse and respond to risks during all phases of the sourcing life cycle Recognise the vale of investing in thorough risk management up front Use tools and templates for managing risk Apply risk management methodology to any sourcing situation, the different types of arrangements and the six different stages of the sourcing life cycle
Recognise the value of creating and promoting a collaborative relationship between buyer and seller Create a common framework between buyer and seller for dealing with risk Delineate how global sourcing is different from other sourcing environments and situations Apply risk management methodology to global sourcing situations
Programme Objectives
Sourcing is a common phenomenon in todays marketplace, due to its labour, technical cost-saving solutions for businesses and government. But, in order for organisations to reap the maximum benefits of sourcing, they must manage the myriad risks that can accompany a sourcing relationship. This course deconstructs the sourcing relationship into six major stages and describes how risk management can be applied to each stage to ensure contract success. Participants will learn to apply risk management methodology to reallife sourcing scenarios. The course also takes an in-depth look at Reminder: This is not a course in the basics of contract management. It assumes that the participant has already taken Contract Management Principles and Practices or has equivalent experience involving contract management. the unique risks of global sourcing endeavors and presents proven strategies for addressing such risks. This course is appropriate for a broad spectrum of sourcing professionals. And, because the course covers all types of sourcing relationships from purchasing to business process outsourcing the concepts and methods taught can be applied to all sourcing situations.
Course Outline
Introduction to Risk Management in the Sourcing Environment
Risk Management in the Negotiations and Contract Award Stage
Stage activities Sources of risk in terms and conditions Collaboration and communication between buyer and seller Negotiation phases, process and best practices Strategies for typical stage risks
How risks in this stage differ along the sourcing continuum
The sourcing environment ESIs Sourcing Continuum ESIs Collaborative Sourcing Model (sourcing life cycle)
Risk Management and Global Sourcing
A typical profile of global sourcing Potential benefits of global sourcing Risk management in global sourcing Single greatest risk How does a global sourcing relationship differ from its domestic counterpart? Risks impacting global sourcing arrangements at each stage of the life cycle
Risk (elements of risk, types of risk, typical risks in sourcing)
Risk management Benefits in sourcing environment Collaboration and communication ESIs Risk Management Model Scalable risk management process
Risk Management in the Start-up and Transition Stage
Stage activities Strategies for typical stage risks How risks in this stage differ along the sourcing continuum
Operational risks and barriers common to every stage
The Big Picture
Risk management: a critical component of sourcing relationships Key benefits of managing risk throughout sourcing life cycle Key to successful sourcing Key to recovering a troubled arrangement Rapid assessment and recovery process
Risk Management in the Strategy and Planning Stage
Stage activities Typical risks in this stage Rapid assessment and recovery process
Risk Management in the Relationship and Governance Stage
Stage terminology, activities and characteristics Increasing complexity and the scalable risk management process Strategies for typical stage risks
Risk Management in the Search and Select Stage
Stage activities Strategies for typical stage risks Contract types Business objectives Managing risk with contract incentives
Risk Management in the Termination and Migration Stage
Stage descriptions and activities Strategies for typical stage risks
Tel: +44 (0) 20 7017 7100
www.esi-emea.com
TM
ESI International
Tel: +44 (0) 20 7017 7100
www.esi-emea.com
