Advanced Contracts and Purchasing Management

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Advanced Contracts and Purchasing Management Course
Introduction:
This program delves into the fundamental principles of strategic procurement and addresses the contemporary challenges faced by purchasing organizations. Managing and initiating contracts can be intricate, requiring a comprehensive understanding of planning and procurement activities. Building successful sourcing relationships necessitates meticulous preparation before contract signing, with both parties having a clear understanding of the desired relationship. Contract management is a systematic process within procurement, encompassing distinct phases and associated activities such as planning, purchasing, awarding, and implementation. The selection of an appropriate contract strategy plays a crucial role in determining contractor performance. It determines factors such as work allocation among contractors, contractor types, contract forms (e.g., lump sum or reimbursable cost), risk allocation, and the utilization of benefits or incentives.
Course Objectives:
After participating in our advanced, dynamic and interesting contract management training course, you will be able to:-
- Gained an advanced knowledge on contract management and apply its proven techniques, tools and procedures on planning, strategy, development, legal, negotiation, disputes, claims, counter claims, risk and administration
- Review the meaning of strategic procurement
- Understand methods of focusing on the more important areas of procurement
- Selected the most appropriate contract strategy
- Be taught how to develop spend analysis
- Designed the contract to mitigate the risk of disputes and design a dispute resolution system
- Selected the most suitable contractor and establish the responsibility matrix
- Explained the effect of various organizational roles and their impact on the management and execution of the contract
- Improve their understanding of various types of contracts and the suitability of each one to the particular requirements of the client and contractor
- Create, maintain and enhance effective working relationships through consideration of more collaborative working, joint venture, partnering and alliances
Who Should Attend?
This intensive program is suitable for:
- Contract Managers/Contract Analysts
- Facilities Managers
- Procurement Managers
- Sales and Marketing Managers
- Service/Operation Managers
- Consultants
- Financial Officers
- Portfolio and Commercial Managers
- Engineering/Maintenance Managers
Course Outlines:
The Steps to Strategic Procurement
- Developing Spend Analysis
- Excel Tools For Analysis
- Category Management
- Developing Key Performance Indicators (KPI) For Procurement
The Demand for Continuous Improvement in Total Cost of Ownership
- Driving Down Prices Through Cost/Price Analysis
- Determining And Tracking Cost Drivers
- Cost Containment
- Improving the Purchasing of Maintenance, Repair, Operating (MRO)
Understanding the contract
- Overview of the tendering and contract award process
- Understanding contracts – a refresher on legal requirements for a contract
- Formal and Informal Contractual documents, including
- Standard terms and conditions
- Letters of intent
- Letters of comfort
- The specification and scope of work – linkage to price and payment
- Types of contracts
- Recognizing where the contract risks lie
- Planning for Contract Life Cycles
Key skills of contract management
- The role and value of an effective contract manager
- Implementing the new contract
- Effective Review processes
- Inspection and certification of contractual performance
- Managing suppliers of professional services
- Working with contract management reports
- Using KPIs in effective contract management
Proactive Contract Risk Management
- What do we mean by risk?
- Risk vs. uncertainty
- Attitudes towards risk
- Risk identification, factors and sources
- Risk analysis approaches
- Qualification and quantification of probability and impact
- Dealing with subjective elements of risk
- Risk strategies
Model Contracts and Terms
- Selecting the right model for the contract
- Force Majeure clauses
- Indemnities and Insurance clauses
- Warranty clauses
- Bonds and Guarantees
- Contract variation clauses
- Economic Price Adjustments
- Terms & Conditions for Adjustments
- Price adjustments using price indexes
Effective Handling of Contract Performance Issues
- Work Ordering Process
- Contract Administration
- Reporting Mechanisms
- Cost Control
- Quality Assurance and Control
Managing Price and Contract Variations
- Managing Price escalation
- Getting a breakdown of costs
- Cost and price analysis techniques
- Tracking changes