Advanced Contract Skills and ITB Training
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Advanced Contract Skills and ITB Training Course
Introduction:
Successful contract management activities are crucial for effectively utilizing vast amounts of money and resources in any organization. To achieve this, it is necessary to select suitable contracting models and create and manage formal agreements with suppliers. This requires a thorough understanding of business requirements, organizational needs, and staying updated on contracting practices. The purpose of this program is to: Explore advanced practices that are considered key to achieving World-Class performance in contract selection, development, and management. Assist participants in assessing their current position. Support participants in implementing immediate steps to maximize overall value for their organization.
Course Objectives:
The program covers the contracting process from tendering and award, through planning and management to close out and resolution of disputes. The intention is to develop general skills with application to a wide range of contractual situations and to allow participants to have an awareness of practices in other areas and other industries that may add value to their own situations. At end of the course, all participants will be able to:-
- Be more effective in contract management activities
- Select the 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
Who Should Attend?
This intensive 5-day program is suitable for personnel from all industrial fields and different purchasing methods:
- Engineering
- Projects
- Construction
- Tenders
- Contracts
- Buying
- Purchasing
- Procurement
- Commercial
- Finance
Those new to the function, preparing for a major project, or experienced managers looking for a refresher will also benefit from this program.
Course Outlines:
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
- Bonds and guarantees
- Letters of intent and award - are they contractual?
- Letters of Comfort - Do they mean anything?
- Side letters - why they can be dangerous
- When to Obtain Legal Advice
- Law of Agency
- Authority to sign contracts
Organizing strategies for Contract Management
- Defining Contract Management Responsibilities
- Basic contract planning
- Communication and managing expectations
Risks and 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
- Reporting Mechanisms
- Cost Control
- Recovery Clauses - Acceleration
- Insurance and Indemnities
- Termination and suspension
Managing Change within a Contract
Understanding change
- Changes to the contract documents
- Variations in scope
- Increases and decreases
- Change in timing
- Change in method of working
- 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