Managing Contracts

Course Overview

Project managers, contract managers and other professionals involved in the world of contracts must be able to work effectively together and with customers, contractors and subcontractors to accomplish key organisational objectives. Because contracts are developed in an increasingly complex environment, including the rising use of contracted supplies and services throughout government and industry, a solid understanding of the contracting process is critical and can give you an advantage whether you are 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 manager’s perspective, highlighting key roles and responsibilities to give you greater influence over how work is performed. You’ll also discuss actions that can be taken to help ensure that contractors or subcontractors perform as required under the contract. Lectures are combined with case studies, exercise and negotiation role-playing to maximise the learning experience. Plus, you’ll receive a comprehensive course materials package, including reference materials specific to each unit of the course.

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

Course Topics

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1. The Contract Management Process
   1. Contract definitions, structure and uses
   2. Protecting Intellectual Property (IP) in contracts
   3. Essential contract elements
      • Offer, acceptance and counter offer
      • Competent parties
      • Consideration
      • Legality of purpose
        • Contracting life cycle
        • Contract management’s five “Ps”
      • People
        • Types of authority
        • Who is in charge? (Sources of conflict)
      • Process
        • Buyer and seller perspectives
        • Buyer and seller steps
      • Performance
      • Price
      • Payment
   4. Concepts and terminology in contract law
   5. Concepts of agency
   6. Contract privity
   7. Contract terms and conditions (Ts & Cs)
   8. Breach, waivers and forbearance
   9. Force majeure
   10. Legal Systems and their influences
   11. Contract interpretation guidelines
2. Procurement Methods and Contract Types
   1. Competitive and noncompetitive contracting methods
   2. Simplified methods
   3. Formal competitive bidding methods
      • Sealed bidding
      • Two-step sealed bidding
   4. Competitive proposals: key steps in source selection
   5. Reverse auction
   6. Formal noncompetitive bidding method
   7. Uncertainty and risk in contracting
   8. Range of contract types and distribution of risk
   9. Business objectives in selecting contract type
   10. Categories and types of contracts
       • Firm-fixed price
       • Contract incentives
       • Fixed-price incentive fee
       • Cost-plus-incentive fee
       • Cost-plus-award fee (CPAF)
       • The award fee plan
       • Cost-plus-fixed fee
       • Time-and-materials (T&M)
   11. Factors in selecting contract types
3. The Pre-Award Phase
   1. Buyer’s steps (with inputs, tools and techniques, and outputs)
      • Plan procurements
   2. Seller’s steps (with ESI’s inputs, tools and techniques, and outputs)
      • Pre-sales activity
      • Bid/no-bid decision making
      • Bid or proposal preparation
4. The Award Phase
   1. Buyer’s step — conduct procurements
      • Inputs, tools and techniques and outputs
      • Source selection process
      • Evaluation criteria (technical, management, price, and past performance)
      • Evaluation standards (absolute, minimum, and relative)
      • Evaluation procedures
   2. Buyer and seller’s step — contract negotiation and formation
      • Keys to successful negotiations
      • Impact on long-term relationships
      • Negotiation approaches
      • Negotiation objectives
      • Best practices in contract negotiation
      • Preparation: the key to success
      • Tools for negotiation preparation
      • Tactics and counter-tactics
      • Document agreement or walk away
      • Post-negotiation activities
5. The Post-Award Phase
   1. Buyer and seller’s step — administer procurements
      • Inputs, tools and techniques and outputs
      • Key contract administration policies
        • Compliance with terms and conditions
        • Effective internal and external communication and control
        • Main administration tasks for buyers and sellers
   2. Buyer and seller’s step — close procurements/closeout
      • Inputs, tools and techniques and outputs
      • Types of terminations
      • Documenting and sharing lessons learned