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Advanced Contracts
Management
Course Introduction
To drive better value from suppliers and supply markets, it is vital that public bodies have skilled
procurement professionals, but it is just as important that a high proportion of mid to senior level
public servants understand the key principles of procurement and commercial relationships. It is this
wider community that is involved in specifying requirements to meet policy goals, deciding on what
is to be bought, and then managing suppliers and contracts post procurement. This programme will
provide the material to enable those executives to carry out those tasks more confidently and
successfully.
Experience and research indicates that most public organisations face numerous problems, delays
and loss of monies in procurement because of their inability to observe and apply the procurement
best practise guidelines at each stage of the complex chain of international and domestic
procurement operations. The increasingly complex legal and regulatory structure within which
contracts are formed, and the prominent role contracting and purchasing personnel play in
achieving project objectives, require managers to understand the fundamental of contracting.
This two-week course provides a close and practical exposure to the various supervision,
performance-tracking, trend-analysis and reporting procedures typically used in contract
administration of nationally-funded or Donor-funded procurement.
Overview and Objectives
Course participants will be able to competently plan and carry out the various contract
administration functions for successful delivery of goods, works and services in accordance with the
scope, quality, time and money provisions of the respective contracts, the applicable law
and recognised standards of professional practice. By the end of the course, the participants will
also understand the intimate link between contract administration and successful project
management including reporting with respect to accomplishment of project outputs and objectives
and demonstrate skills in the areas below
Understand the best means of handling claims, disputes and performance issues
identify stakeholder expectations, and convert project needs into contract requirements
Assess the strengths/weaknesses of contract types, and select the best one for the situation
Reduce the potential for disputes and legal action, by understanding the legal requirements
and implications of contracts
Contract management
Project management
Design management
Construction management
Procurement management
Commercial management
Finance management
Training Methodology
The programme will include a range of lively and interactive training methods, including exercises,
role plays, case studies, practice sessions and group discussions. The learning experience will be
grounded on instructor-led presentations that highlight key issues to focus on, and supported by a
reference manual containing examples of best practice. Discussions will enable participants to share
their own experiences with the rest of the group.
MODULE 1:
Procurement Management and Procurement Best Practices
Seeing Procurement as a Dynamic, Interactive System
The System Approach vs. the traditional Functional Approach
What is the goal of Procurement?
Developing the Strategic Procurement Plan
An overview of the procurement process
Procurement as part of the Supply Chain
Contract Management & Tendering - When does the Process Start?
What You Need To Know To Be Competent At Contract Management
Elements Of A Good Procurement & Competitive Bidding Process
Standards Of Ethical Practice
Example Policy Relations With Suppliers
Selecting The Right Contracting Strategy
Types Of Statement Of Work
The Importance Of The Contract
Basic Contract Types
Basic Types Of Project Delivery
Concepts and Principles of Contract Law
Mandatory elements of a legally enforceable contract
Terms and conditions
Remedies
Interpreting contract provisions
MODULE 2:
Tender planning skills development
The breadth of skills required for a
successful tender exercise
Targeting the skills you need and
selecting the evaluation panel
Communication
techniques
with Inspection, Acceptance, Rejection
Clauses For Defects In Material And
stakeholders
Workmanship
Set your communication goals
Developing
Performance-Based
Service
Target who you need to communicate
Contracts
with why one technique wont serve for
Penalty/Liquidated Damages Clause
all
Clauses For Spare Parts
Profile your targets and determine the
right approach
Ensure your communication will be Bidder Selection and Tender Evaluation
Selecting The Bidders
effective and identifying your targets
We Want More Than The Lowest Price
stage of commitment
How Do You Know You Got A Good Price?
Use Of Price Indexes
Designing an accurate outcomes based
Electronic Evaluations
tender proposal
Requesting
Cost
Breakdowns
And
The scorecard model for designing
MODULE 3:
Session 1: Fundamentals of Contracts and
Contract Management Process
Terminology - procurement and
contracting
Contract definition - practical and legal
Purpose of contracts
Risk transfer through contracting
Definition of contracting success
Stakeholder expectations
Communications chain
Buyer, seller, and subcontractor terms
Description and uses of contracts
Plan contracting
Privity of contract
Contractor personnel
Session 4: Contracting Methods
Contracting methods competitive and
non-competitive
Sealed bidding
Single-source negotiation vs. sole-source
negotiation
MODULE 4:
Contract Administration: A Proactive
Process
Purpose of contract administration
Main tasks in contract administration
Contract administration realities
Contract administration is a team effort
Types of warranties
Warranty issues - cost vs. risk