CENTRE FOR DEVELOPMENT & MANAGEMENT SOLUTIONS

Advanced Contracts
Management
Course Introduction

To drive better value from suppliers and supply markets, it is vital that public bodies have skilled
procurement professionals, but it is just as important that a high proportion of mid to senior level
public servants understand the key principles of procurement and commercial relationships. It is this
wider community that is involved in specifying requirements to meet policy goals, deciding on what
is to be bought, and then managing suppliers and contracts post procurement. This programme will
provide the material to enable those executives to carry out those tasks more confidently and
successfully.
Experience and research indicates that most public organisations face numerous problems, delays
and loss of monies in procurement because of their inability to observe and apply the procurement
best practise guidelines at each stage of the complex chain of international and domestic
procurement operations. The increasingly complex legal and regulatory structure within which
contracts are formed, and the prominent role contracting and purchasing personnel play in
achieving project objectives, require managers to understand the fundamental of contracting.
This two-week course provides a close and practical exposure to the various supervision,
performance-tracking, trend-analysis and reporting procedures typically used in contract
administration of nationally-funded or Donor-funded procurement.
Overview and Objectives
Course participants will be able to competently plan and carry out the various contract
administration functions for successful delivery of goods, works and services in accordance with the
scope, quality, time and money provisions of the respective contracts, the applicable law
and recognised standards of professional practice. By the end of the course, the participants will
also understand the intimate link between contract administration and successful project
management including reporting with respect to accomplishment of project outputs and objectives
and demonstrate skills in the areas below

Define The Essential Elements Of A Contract

Select the right contract type for your project

Select appropriate type and form of contracts for different situations

Understand the legal framework in which contract management takes place

Understand the contract complexities that need managing

Explain the practical steps in obtaining and analysing performance data

Be more effective in contract management activities

Anticipate problems and manage risks

Integrate contract management with contract needs

Understand the best means of handling claims, disputes and performance issues

Negotiate favourable terms and make revisions to the contract

identify stakeholder expectations, and convert project needs into contract requirements

Assess the strengths/weaknesses of contract types, and select the best one for the situation

Reduce the potential for disputes and legal action, by understanding the legal requirements
and implications of contracts

Identification, management and strategies to resolve contractual issues / problems

Negotiation techniques for resolving issues / claims / disputes

Who should attend?

The program is primarily intended for senior executives in government and public service. It is also
suitable for anyone at senior or junior level who has responsibility and influence in relation to any
interaction the organisation has with external suppliers and contracts management. This include
but not limited to:

Contract management

Project management

Design management

Construction management

Procurement management

Commercial management

Finance management

Consultants working with the public sector

Senior managers and directors of organisations with a commercial / procurement interest

Procurement Officers in Public sector

Procurement Specialist and all those interested in understanding procurement of contracts

and tendering

Training Methodology
The programme will include a range of lively and interactive training methods, including exercises,
role plays, case studies, practice sessions and group discussions. The learning experience will be
grounded on instructor-led presentations that highlight key issues to focus on, and supported by a
reference manual containing examples of best practice. Discussions will enable participants to share
their own experiences with the rest of the group.

MODULE 1:
Procurement Management and Procurement Best Practices
Seeing Procurement as a Dynamic, Interactive System
The System Approach vs. the traditional Functional Approach
What is the goal of Procurement?
Developing the Strategic Procurement Plan
An overview of the procurement process
Procurement as part of the Supply Chain
Contract Management & Tendering - When does the Process Start?
What You Need To Know To Be Competent At Contract Management
Elements Of A Good Procurement & Competitive Bidding Process
Standards Of Ethical Practice
Example Policy Relations With Suppliers
Selecting The Right Contracting Strategy
Types Of Statement Of Work
The Importance Of The Contract
Basic Contract Types
Basic Types Of Project Delivery
Concepts and Principles of Contract Law
Mandatory elements of a legally enforceable contract
Terms and conditions
Remedies
Interpreting contract provisions

MODULE 2:
Tender planning skills development
The breadth of skills required for a
successful tender exercise
Targeting the skills you need and
selecting the evaluation panel

Attracting & facilitating the best responses

Attracting enthusiasm and the best efforts
from the market
Managing briefings, data rooms, questions,
answers and site visits

Communication
techniques
with Inspection, Acceptance, Rejection
Clauses For Defects In Material And
stakeholders
Workmanship
Set your communication goals
Developing
Performance-Based
Service
Target who you need to communicate
Contracts
with why one technique wont serve for
Penalty/Liquidated Damages Clause
all
Clauses For Spare Parts
Profile your targets and determine the
right approach
Ensure your communication will be Bidder Selection and Tender Evaluation
Selecting The Bidders
effective and identifying your targets
We Want More Than The Lowest Price
stage of commitment
How Do You Know You Got A Good Price?
Use Of Price Indexes
Designing an accurate outcomes based
Electronic Evaluations
tender proposal
Requesting
Cost
Breakdowns
And
The scorecard model for designing

the outcomes your stakeholders are

Evaluations Of Cost Breakdowns
looking for
Explore the contract provisions
Tender evaluation methodologies
Key
contents
including
a
Comparing the bids and developing scoring
responsibility matrix, definitions
techniques
Evaluating Statements of Departures
KPIs and incentives, reporting, and
Applying interactive evaluation techniques
governance
such as interviews and site visits
Value
for
money
selection
and
Making the price model decision
Determine the business case and
understanding how lowest price may come
what the go/no-go signposts are
at the highest cost
Completing the contract farming the bids
Planning the tender before going to
Applying due diligence to ensure the
market
Outlining the different stages: RFI, viability of the supplier, the bid & the
contract
EOI, RFT BAFO
When to use the various stages
Company/financial
Price
Drafting the tender document or market
Proposed solution(s)
package
Contract compliance
Format and contents
Customer references
Conditions of tendering, rights and
obligations
Developing evaluation criteria
Examining mandatory, qualitative
and quantitative forms of criteria
Determining and weighting the
optimal criteria
Writing accurate questions that get
accurate answers based on the right
criteria

MODULE 3:
Session 1: Fundamentals of Contracts and
Contract Management Process
Terminology - procurement and
contracting
Contract definition - practical and legal
Purpose of contracts
Risk transfer through contracting
Definition of contracting success
Stakeholder expectations
Communications chain
Buyer, seller, and subcontractor terms
Description and uses of contracts

Session 5: Pre-Award Phase

Developing a procurement plan
Solicitation
Bid/no-bid decision making
Proposal preparation
The buyer and sellers activities
Buyer activities

Plan purchases and acquisitions

Plan contracting

Understanding the PMBOK Guide

Session 7: Award Phase

The buyer and seller objectives

Contract management and PMBOK
Guide
Contracting Concepts and Principles
Elements of a contract: offer, acceptance,
competent parties, consideration, legality
of purpose
Terms and conditions
Interpreting contract provision
Negotiation Tips

Pre-contractual documents and documents of

contract effectiveness
Letters of Intent and Award, Instructions to
Proceed
Bonds
Tender documents
Parent Company Guarantees
Letters of Comfort and Awareness
Use of commercial standard documents
Use of General and Special Conditions
Session 2: Needs Analysis
Objectives to requirements documents
Requirements documents to SOW
Contract types
Contract management mistakes
Role of legal department
Session 3: Teamwork-Role and
Responsibilities
Concepts of agency
Types of authority
Contract privacy Concept of agency

Privity of contract
Contractor personnel
Session 4: Contracting Methods
Contracting methods competitive and
non-competitive
Sealed bidding
Single-source negotiation vs. sole-source
negotiation

MODULE 4:
Contract Administration: A Proactive
Process
Purpose of contract administration
Main tasks in contract administration
Contract administration realities
Contract administration is a team effort

Source selection process

Selection criteria: management,
technical, and price criteria
Evaluation standards
Negotiation objectives
Negotiating a contract
Session 6: Developing Contract Pricing
Agreement
Uncertainty, risk, and performance
measurements
Categories and types of contracts
Contract incentives and fees
Time-and-materials contracts

Session 8: Contract Administration

Key contract administration policies
Dealing with non-compliance
Continuous communication
Applicable charges to the buyers and
the sellers
Change Management
Termination and contract resolution
Key contract administration policies
Tasks for buyers and sellers
Contract analysis
Performance and progress
Records, files and documentation
Resolving claims and disputes Managing
the
Contract Performance
The Criticality Of Good Contract
Administration
Contract Changes
Determining Status And Expediting
Contractor Payments
How Contracts End
Remedies For Breach Of Contract
Types Of Bonds & Guarantees

Quality Assurance and Acceptance

What Works
Inspections and tests
ISO 9000 series
ISO 9001 and ANSI/ASQC Q91 and Q94
Acceptance methods - what is best
Acceptance criteria - what to do

Buyers perspective vs. sellers

perspective
Contract Administration: Planning - Who
Does What, Where, and When
Contract work breakdown structure
(CWBS) as a tool
Responsibility matrix
Schedules
Contract administration plans are a must
Pre-performance meetings
Changes Management Risk vs.
Opportunity
Types of changes
Analysing impacts
Principles of changes management
Identification
Authorization
Estimation
Negotiation
Documentation
Implementation
Dos and Donts
Delegation of authority issues
Monitoring Progress Tools and
Techniques
Performance observation
Progress reports
Performance variances
Records
Corrective action

Training Materials( Soft Copies) and

notes Hand-outs
Tablet 10 inch/Laptop
Tea Breaks/ refreshments
Course tuition
Personal action planning
Certification
Follow-up support (on request)

Types of warranties
Warranty issues - cost vs. risk

Invoice and Payment Management

Cash is King
Payment objectives
Payment procedures
Types of payments
Advance payments
Progress payments
Partial payments
Final payments
Terminations What to Know, What to do
Mutual agreement
Default or cause
Notification - what to say
Settlements
Contract Closeout Final Actions
Administrative closeout
Completion of work
Closeout checklists
Lessons learned database