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A major portion of every organization’s operating cost is spent on outside goods and services. Based on this fact, executive management everywhere is determining that Managing Tenders, Specifications, and Contracts must emerge as a critical core competency if organizations are to increase revenue. This course is designed to explore many of the best practices in the initial phases of contracting so that participants will be able to implement the steps needed to create maximum total value for their organization. Included in the vast number of topics that brings increased professionalism to these important functions are:

· Elements of a good procurement and competitive bidding process

· Developing high quality specifications

· Developing tender evaluation criteria

· Selecting the right contracting strategy

· Contract preparation

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

· Discuss elements of good procurement process

· Develop methods of contractor performance measurement

· Learn methods of tender evaluation

· Review contract strategies

· Explore steps in developing performance based service contracts

· See examples of important commercial contract clauses

· Be presented the essential elements of a contract

· Be given examples of contract checklist

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

Contracting Strategy

· Elements of a good procurement and competitive bidding process

· Selecting the right contracting strategy

· The importance of the contract

· Basic types of project delivery

· Types of statement of work

· Specification check list

· Conduct risk assessment

Evaluation and Contract Preparation

· Basic contract types

· Developing tender evaluation criteria

· Value model of total cost of ownership

· Electronic evaluations

· How do you know you got a good price?

· Requesting cost breakdowns and evaluations of cost breakdowns

Important Elements of the Contract

· Objectives of the contract

· Contract check lists

· The important integration clause

· Inspection, acceptance, rejection

· Clauses for defects in material and workmanship

· Performance-based service contracts

· Penalty liquidated damages clause

· Clauses for spare parts

Additional Important Contract Clauses

· Today’s challenges regarding force majeure

· How to deal with contract changes

· Methods of payment

· Advance payments

· Progress payments

· Letters of intent

Preparing the Contract for the Completion

· How contracts may end

· What constitutes a breach?

· Remedies for breach of contract

· Types of bonds and guarantees

· Disputes resolution provisions

· Final contract review process

Outlining the Next Steps after the Tender Has Been Awarded

· Start of work

· Form of agreement

· Bonds and guarantees

· Master contract records

· Ensuring performance compliance by using the change management process

· Discussing the breach of contract with tenderers

· Resolving disputes by implementing a dispute resolution procedure

· Detailing contract close-out procedures