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In every organization the effective expenditure of enormous sums of money and resources is dependent on successful contract management activities. Selecting the appropriate contracting models and creating and managing formal agreements with suppliers of goods and services requires not only a complete understanding of the business requirements and organization needs, but also depends on keeping up-to-date on contracting. This course is designed to:

• Explore the advanced practices generally viewed as leading to World-Class performance in contract selection, development and management
• Enable participants to determine where they are now
• Help participants to begin immediate implementation of the steps needed to create maximum total value for their organization

By the end of this course delegates will be able to:

• Be more effective in contract management activities
• Select appropriate type and form of contracts for different situations
• Anticipate problems and manage risks
• Integrate contract management with contract needs
• Understand the best means of handling disputes and performance issues
• Establish terms and conditions for different situations
• Have the latest advances in contract selection and management

Contracts, Purchasing, and Project Personnel, Engineering, Operational, and Maintenance Personnel, Project and Contracts Management Professionals, Tendering, Purchasing, Contract Administration Professionals and Personnel, Engineering, Operational, Finance, Maintenance Professionals, Managers and executives in the procurement, finance, legal, risk and supplier relations department, Business Managers, Commercial staff, Project Engineers, Procurement staff, Legal staff, Contracts analysts & Officers, Contract Leaders & Engineers, Cost & Planning Engineers, Contract Administrators, Contracting Unit Supervisors, Claims Managers and Business Audit Officers, Contract Strategists, Project Managers, General Managers involved in contract negotiation and disputes, Commercial Managers, Buyers, Purchasing Managers, Tenders Managers, Supply Chain Managers & Executives, Procurement Managers & Personnel, Construction Managers, those involved in the planning, evaluation, preparation and management of tenders, awards and contract performance that cover the acquisition of materials, equipment and services

The Basis of Contracting

· Principles of good contracting

· Why do we use contracts?

· Key steps in the creation of a contract

· Essential elements of a valid contract

· Overview of tendering & contract award process

· Advantages of tendering and some pitfalls to avoid

· Distinguishing price and values

· Other types of obligation documents

· When to obtain legal advice

· Law of agency

· Authority to sign contracts

· Organising strategies for contract management

· Defining contract management responsibilities

· Basic contract planning

· Communication and managing expectations

Risks & Selecting the Right Contract Structure

· Assessing and allocating risk

· Identifying risk

· Apportioning risk

· Incorporating risk assessment and management

· Selecting types of contract

· Traditional – lump sum, schedule of rates, reimbursable etc.

· EPC

· BOT/BOOT

· Alliance/partnering

· Warranty management

Major Contract Terms to Aid the Handling of Performance Issues

· Effective handling of contract performance issues

· Design and specification

· Work ordering process

· Obligation to perform work

· Transfer for ownership

· Risk of damage

· Contract administration

· Recovery clauses – acceleration

· Insurance and indemnities

· Termination and suspension

Managing Change within a Contract

· Understanding change

· Changes to the contract documents

· Variations in scope

· Managing change

· Risks of uncontrolled change

· Developing contract terms and conditions

· Finding contract templates

· Using standard form documents

· Modifying standard forms

· Drafting special conditions

· Issues for subcontracts

Resolution of Disputes

· Eliminating sources of contract disputes

· Errors and omissions

· Anticipating and avoiding conflicts

· Dealing with unknowns

· Tracking changes

· Managing expectations

· Resolving disputes

· Negotiation

· Litigation

· Arbitration

· Alternative dispute resolution

· Revisiting strategic alliance and partnering agreements and BOT/BOOT

· Prime contracting and other consolidated sourcing contracts

· Online contracting and E-tendering