Introduction
Contracts are central to all commercial transactions, making contracts management a core competency for successful organizations. This program equips participants with both strategic insights and practical skills across the entire contracting lifecycle, focusing on negotiation, price and cost analysis, risk management through contract types, critical source selection, contract administration, and claims/dispute resolution.
Objectives
By the end of this 5-day program, participants will be able to:
- Develop negotiation skills to achieve organizational objectives.
- Understand price and cost analysis fundamentals and pricing models.
- Apply contract types effectively to transfer and manage risk.
- Address volatile material pricing and economic adjustments.
- Evaluate and implement performance-based service contracting methods.
Target Audience
- Contract Managers and Administrators
- Procurement and Supply Chain Professionals
- Project Managers involved in contractual projects
- Legal and Commercial Teams supporting contracting activities
- Senior executives responsible for supplier or contract oversight
Program Outline
DAY 1 – Contracting and Negotiations Planning
- Elements of a good contracting and procurement process
- Role and characteristics of negotiation
- Negotiation basics: preparation, BATNA, and handling multiple issues
- Practical negotiation insights and tips
DAY 2 – Financial Management and Risks
- Cost and pricing analysis
- Allocation of overheads and developing “should cost”
- Pricing models for proposals
- Risk assessment and management strategies
DAY 3 – Contract Types and Payments
- Contract risk-sharing continuum
- Types of progress payments
- Implications of contract types: fixed price, cost-reimbursement
- Economic price adjustment clauses and price indexes
- Invoices, payments, and letters of credit
DAY 4 – Source Selection and Contract Development
- Performance-based contracting: when and why
- Supplier qualification and selection processes
- Drafting contracts: rules, terms & conditions, and essential elements
- Formation of contracts and tendering standards
DAY 5 – Contract Administration
- Entire agreement and critical integration clauses
- Post-award functions and responsibilities
- Contract administration duties and modifications
- Contract interpretation, dispute resolution, termination, and close-out
