This two-day programme gives the key insights and understanding of contracting principles and the impact they have on business and operations. The course is designed for individuals involved in or supporting contracting who want to improve their commercial management skills; individuals in functions such as project management, business development, finance, operations who need practical training in commercial management; general audiences wanting to gain a basic understanding of commercial management.
This is an assessed programme, leading to the International Association for Contracts & Commercial Management (IACCM)'s coveted Contract and Commercial Management Associate (CCMA) qualification.
The programme addresses 31 different subject areas, across the five stages of the contracting process.
By the end of the course the participants will be able, among other things, to:
Develop robust contract plans, including scope of work and award strategies
Conduct effective contracting activities, including ITT, RFP, negotiated outcomes
Negotiate effectively with key stakeholders, making use of the key skills of persuading and influencing and to work with stakeholders to improve outcomes
Set up and maintain contract management systems
Take a proactive approach to managing contracts
Make effective use of lessons learned to promote improvements from less than optimal outcomes, using appropriate templates
Develop and monitor appropriate and robust Key Performance Indicators to manage the contractor and facilitate improved performance
Understand the approvals process and how to develop and present robust propositions
Make appropriate use of best practice contract management tools, techniques and templates
DAY ONE
1 Introductions
Aims
Objectives
Plan for the day
2 Commercial context
Explaining the contracting context
Define the key objective
The importance of contact management
Impact upon the business
3 Stakeholders
How to undertake stakeholder mapping and analysis
Shared vision concept,
How to engage with HSE, Finance, Operations
4 Roles and responsibilities
Exploring the key roles and responsibilities of contract administrators, HSE, Finance, Divisional managers, etc
5 Initiating the contract cycle
Overview of the contracting cycle
Requirement to tender
Methods
Rationale and exceptions
6 Specifications
Developing robust scope of works
Use of performance specifications
Output based SOW
7 Strategy and award criteria
Developing a robust contract strategy
Award submissions/criteria
8 Managing the tender process
Review the pre-qualification process
Vendor registration rules and processes
Creation of bidder lists
Evaluation, short listing, and how to use of the 10Cs© model template and app
9 Types of contract
Classify the different types of contracts
Call-offs
Framework agreement
Price agreements
Supply agreements
10 The contract I: price
Understanding contract terms
Methods of compensation
Lump sum, unit price, cost plus, time and materials, alternative methods
Cost plus a fee, target cost, gain share contracts
Advanced payments
Price escalation clauses
DAY TWO
11 Risk
How to manage risks
Risk classification
Mitigation of contractual risks
12 Contractor relationship management session
Effectively managing relationships with contractors,
Types of relationships
Driving forces?
Link between type of contract and style of relationship
13 Disputes
Dealing with disputes
Conflict resolution
Negotiation
Mediation
Arbitration
14 Contract management
Measuring and improving contract performance
Using KPIs and SLAs
Benchmarking
Cost controls
15 The contract II: terms and conditions
Contract terms and conditions
Legal aspects
Drafting special terms
16 Managing claims and variations
How to manage contract and works variations orders
Identifying the causes of variations
Contractor claims process
17 Completion
Contract close-out process
Acceptance/completion
Capture the learning/HSE
Final payments, evaluation of performance
18 Close
Review
Final assessment