Introduction

Purchasing and contracting are vital for organizational performance, impacting costs, quality, and supplier efficiency. This MBA-level programme provides an in-depth, strategic approach to purchasing and contract management, with a focus on international best practices, supplier management, negotiation, and risk mitigation. Participants will gain hands-on experience in drafting, negotiating, and managing contracts, integrating procurement strategy with corporate objectives, and applying tools for operational excellence.

Programme Objectives

By the end of this 10-day programme, participants will be able to:

• Examine the role of purchasing and contracting in global organizations
• Analyze contract structures and drafting principles
• Apply contracting strategies in international procurement
• Manage suppliers effectively and evaluate performance
• Conduct negotiations and implement dispute resolution mechanisms
• Integrate corporate strategy with procurement strategy
• Develop advanced skills in risk management, budgeting, and cost control
• Implement strategic sourcing and category management
• Apply project management principles to procurement and contracts
• Enhance operational efficiency and compliance in purchasing activities

Target Audience

• Procurement Managers and Officers
• Contract Managers and Administrators
• Project Managers involved in procurement and contracts
• Supply Chain, Operations, and Finance Managers
• Legal advisors working with contracts
• Professionals responsible for vendor management, sourcing, and international procurement

Programme Outline

Day 1 – Introduction to Contracts & Purchasing

• Overview of modern purchasing and contract management
• Role of contracts in business success
• Legal frameworks and contract types
• Key documents and collateral instruments: letters of intent, bonds, guarantees
• Principles of risk allocation and mitigation

Day 2 – Contract Formation & Legal Considerations

• Contract formation: offer, acceptance, consideration, intention
• Formalities, authority, powers of attorney
• International contracts and legal systems (common vs. civil law)
• Compliance, regulatory requirements, and ethical considerations

Day 3 – Tendering and Procurement Strategies

• Competitive tendering, framework agreements, negotiated contracts
• Single vs. multiple sourcing
• Supplier prequalification and evaluation
• Cost, price, and value analysis
• Procurement KPIs and supplier performance monitoring

Day 4 – Drafting Contracts – Principles & Practices

• Clarity of language, translation issues
• Key clauses: HSE, scope, timelines, deliverables, warranties, indemnities
• Insurance clauses and risk allocation
• Payment terms, penalties, liquidated damages
• Drafting exercises: real-life examples

Day 5 – Negotiation Techniques

• Preparation for negotiation and BATNA
• Negotiation strategies for complex and international contracts
• Managing difficult counterparts
• Multi-party and cross-cultural negotiations
• Practical negotiation exercises

Day 6 – Advanced Contracting Techniques

• Selecting the right contract type for projects: EPC, BOT/BOOT, lump sum, reimbursable
• Contracting in complex projects and mega-projects
• Collateral documents and integration with the main contract
• Letters of comfort, award, side letters
• Case studies on large international projects

Day 7 – Risk Management in Contracts & Procurement

• Identifying, assessing, and mitigating risks
• Incorporating risk strategies into contracts
• Insurance regimes and limitations
• Scenario analysis and contingency planning
• Claims and dispute management

Day 8 – Contract Administration & Performance Management

• Roles in contract management and project alignment
• Document control, change management, reporting, cost control
• Managing contractor and supplier relationships
• Monitoring performance, deadlines, and milestones
• Exercises in performance measurement and improvement

Day 9 – International Procurement & Strategic Sourcing

• Global sourcing strategies and challenges
• Supplier selection and management
• Cost optimization, total cost of ownership, and inventory management
• Ethical and CSR considerations in international procurement
• Category management and procurement benchmarking

Day 10 – Closing, Dispute Resolution & Action Planning

• Contract closeout procedures and final audits
• Dispute resolution: mediation, arbitration, expert determination, litigation
• Lessons learned, reporting, and continuous improvement
• Developing action plans for procurement and contracts in participants’ organizations
• Final review, exercises, and group discussion