Introduction
Formulating business needs, defining and planning projects, selecting providers, negotiating contracts and subsequent management of project delivery demands detailed understanding and astute management skills to minimize risks and maximize organizational value. Contract failures can be time consuming, disruptive and very costly.
This highly intensive Strategic Contract Management training course will look at a number of advanced concepts in Contract Management that will enable the participants to deal with the ever-changing business environment and to apply a proven systematic approach to the contract management process, facilitating effective and efficient achievement of business objectives.
Course Objectives
The Strategic Contract Management training course is designed to equip the participants with enhanced contract management knowledge and skills. As a result of attending this training course, the participants will be able to:
- Expand their knowledge of key contract management concepts, contractual processes, good practices and issues
- Improve managerial approaches to contract management and build essential skills to effectively and efficiently deliver contract outcomes
- Focus on the delivery of measurable organizational value in every contract, every time
- Identify and mitigate contract risk factors and associated commercial implications
- Understand different types of contractual relationships and select an effective contracting strategy
- Appreciate stakeholder management principles and select an effective stakeholder management approach to help manage relationships, while ensuring they deliver what promised
- Identify necessary pre-contract activities, including accurate assessment and articulation of business requirements, tendering, tender evaluations and supplier selection
- Apply hands-on skills for every contract stage and consider what it takes to perform the key tasks involved throughout the contract life cycle
- Apply some “tricks of the trade” in negotiation, procurement and contract management
- Apply basic project planning, scheduling and budgeting techniques to establish effective contract baselines
- Review robust contract management documents that will survive tough audits
- Develop strategies for effective project execution, monitoring and control
- Explore how to manage contracts that don’t go as planned and lead to disputes, poor performance, variations to plan and, if it comes to it, premature contract terminations
- Immediately implement steps needed to maximize contract value
Who Should Attend?
This Strategic Contract Management training course would be particularly suitable for:
- Professionals from all industries who need to advance their skills in contract management
- Personnel at all levels who deal with vendors and contractors, and are interested in maximizing the value of contract expenditure
- Personnel from project teams, planning departments, process improvement teams, contracting teams, internal audit personnel, risk and / or contract strategists
Course Outline
Introduction and Key Concepts
Contract Management overview
The purpose and nature of contracts
Key contract management principles
Typical issues connected with contract management
Projects, programs, endeavors
Project lifecycle
The Role of Stakeholder Management in Successful Contracts
Understanding key stakeholders; stakeholder management planning
Effective stakeholder management strategies
Business need analysis and requirements elicitation
Definition of project requirements
Strategic Procurement Planning
What are contracts and how are they created?
Corporate procurement strategy
Contract delivery models
Pre-contract Fundamentals
Procurement / contract management cycle: before, during and after signing the dotted line
Pre-tender activities
Developing acquisition strategy and specifications
Contract pricing strategies
The tender process, tender documentation required, evaluation planning, evaluation methodologies
Supplier selection: requirements for a good set of selection criteria; evaluation matrix
Structure of contracts
Contract Negotiation and Transition
Preparing to negotiate: objectives, context, issues, negotiating strategies
Negotiation styles, assessment of negotiating position/power
Negotiation planning and process
Interest based bargaining
When things don’t go as planned
Negotiator tactics and skills
Contract transition
Contract Risk Management
Contract risk management definitions and process
New concepts in risk mitigation
Planning the Contract Delivery: Establishing the Baseline
Project scope, requirement traceability and Work Breakdown Structure
Using the Critical Path Method to manage contract deadlines
Managing budget and contingencies
Identifying and mitigating risks
Effective Contract Monitoring
Fundamentals of effective contract performance monitoring and control
Refining project requirements and managing variations
Earned Value Management
Payments management, linking payments to performance, payment records
Maximizing Value through Effective Control
Managing project creeps and time delays
Issue / dispute resolution
Managing poor performance and non-conformance
Closing the Contract
Contract termination / extension
Decision making on options for contract extension, renewal or termination
Project completion / inspection / handover / acceptance
Lessons Learned
Contract performance reviews and benefit realization