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Contract Management Principles and Practices

Course Duration: 3 Days (8:30am-5:00pm)

Professional Development Units (PDU): 22.5

Continuous Professional Development Points (CPD): 15

You'll Learn How To:

• Identify contract components and understand the process from start to finish
• Select the right contract type for your project
• Decipher contract legalese
• Agree on objectives, requirements, plans, and specifications
• Negotiate favourable terms and make revisions to the contract
• Apply the '10 rules of contract interpretation' in project disputes
• Administer contracts appropriately and know when and how to terminate them

PMBOK® Knowledge Areas:

Project Quality Management Project Risk Management Project Procurement Management

Program Objectives:

Understanding the contracting process gives project managers better control over achieving objectives.

As a project manager, you must be able to work effectively with contracting managers, purchasing professionals, and subcontractors to accomplish key objectives. Because contracts are developed in an increasingly complex and regulated environment, a solid understanding of the contracting process is critical and can give you an advantage, whether you're on the buyer's or seller's side.

Get an overview of all phases of contracting, from requirements development to closeout. See how incentive can be used to improve contract results.

This course explores these vital issues from the project manager's perspective, highlighting your roles and responsibilities to give you greater influence over how work is performed. You'll also get special guidance on how to take action to ensure that contractors or subcontractors perform as required under the contract.

Lectures are combined with case studies, exercises and negotiation role-playing to maximise the learning experience. Plus, you'll receive a comprehensive course materials package.

Effective contract negotiation and administration can ensure project success and speedy performance, reducing risks and costs along the way. Discover the keys to contracting from your perspective in this practical course.

Course Outline:

1. Understanding the Contract Management Process: Contract management definition Buyer, seller, and subcontractor terms Description and uses of contracts Buyer and seller perspectives Contract management and PMBOK® 
2.  Teamwork - Roles and Responsibilities: Concepts of agency Types of authority Privity of contract
3. Global Contracting: Concepts and Principles Definition of a contract Elements of a contract: offer, acceptance, competent parties, consideration, legality of purpose Contract law Terms and conditions Interpreting contract provisions 
4.  Contracting Methods: Contracting methods – competitive and non-competitive Purchase cards, imprest funds or petty cash, and auctioning Sealed bidding, two-step sealed bidding, competitive negotiation, and competitive proposals Purchase agreements vs. contracts Single-source negotiation vs. sole-source negotiation
5. Preaward Phase Developing a procurement plan: Solicitation Bid/no-bid decision making Proposal preparation Buyer actions vs. seller actions 
6.  Developing Contract Pricing Agreements: Uncertainty, risk, and performance measurements Categories and types of contracts Contract incentives and fees Types of contracts: fixed-price, time and materials, and cost-reimbursement Cost-reimbursement contracts Time-and-materials contracts Selecting contract types 
7.  Award PhaseSource selection process Selection criteria: management, technical, and price criteria Evaluation standards Absolute, minimum, and relative standards of evaluation Fail-safe evaluation procedures Negotiation objectives Negotiating a contract- Tactics and counter tactics (buyers vs. sellers) - Document agreement or walk away
8. Contract Administration: Key contract administration policies Dealing with noncompliance Continued communication Tasks for buyers and sellers Contract analysis Performance and progress Records, files, and documentation Change management Claims and disputes Termination

Course Schedule and Fees

Prices below are indicative of Public Courses Only. Discounts apply for groups and on site training. Please call ESI to discuss.