Course Overview

Contracts establish the responsibilities and rights of the parties. This highly interactive program will provide a practical hands-on approach to effective management of contracts and offer techniques and contract strategies to assist this process. It will also assist in establishing an international risk management strategy regarding contracts and develop good business practices to take advantage of opportunities, enhance efficiency, and increase profitability

Course Objectives

Upon completion of this course, the trainees will be aware and understanding of the following:

• Understand the necessary contractual and legal knowledge
• Understand and apply the different types of agreements
• Increase commercial awareness needed to enhance the smooth running of contracts
• Increase the ability to manage contracts to reduce claims and conflict
• Identify and mitigate risk factors and associated commercial and program implications
• Understand the importance of good record-keeping and service of contractual notices
• Increase the understanding of commercial liabilities resulting from schedule changes and variations
• improve the ability, successfully to negotiate and maintain long term inter-business contracts with confidence
• Understand the need to deal with issues as they arise and to resolve disputes within the contract structure wherever possible
• Analyze, negotiate and implement the most appropriate method of resolving disputes preventing escalation by early identification

Who Should Attend?

• Contract Professionals
• Tendering, Purchasing and Procurement Professionals
• Project Management Professionals
• Engineering, Operational, Finance, and Maintenance Professionals

Course Contents

Module (01) Principles of contracts

• Defining a contract
• Elements of a contract
• Expressed and implied contracts
• Important concepts in contract used in contract management
• Problems in preparing and managing contracts

 Module (02) Contract preparation

• Stages of contract preparation and management
• Set-up contracting strategy
• Contracting methods
• Developing the scope of work
• Problems with a badly written scope of work
• Decision analysis worksheet
• Developing Evaluation criteria
• Terms and conditions
• Determining sourcing strategy
• Pre-qualification criteria
• Prepare request for proposal

 Module (03) Contract types and strategies

• One or several contracts
• Fixed price contracts
• Cost reimbursable contracts
• Time and material contracts
• Payment terms

 Module (04) Tendering and Bids Evaluation

• Principles of tendering
• Objectives of tendering
• Tendering process
• Bids Evaluation
• Technical evaluation
• Commercial evaluation
• Total cost of ownership
• Value for money
• Most Economically Advantageous Tender (MEAT)

 Module (05) Contract administration

• Purpose of contract administration
• Documents needed to administer a contract
• Contract administration tools
• Role of contract administrators
• Substantial completion
• Lessons learned
• Final settlement

Module (06) Contractor Evaluation

• KPIs
• Targets and benchmarking
• SLAs
• Management of subcontractors
• Close-out, termination, suspension

Module (07) Changes, variations, claims and disputes and their mitigation

• Change order process
• Breach of contract
• Claims and disputes, liquidated damages, compensation
• Arbitration
• Importance of documentation, notice provisions, contractual and/or legal basis of the claim

Module (08) Resolution of Disputes

• Negotiation, compromise and settlement
• Litigation
• Arbitration
• Alternative Dispute Resolution - including mediation
• Managing disputes