Course Overview
Employing the services of suppliers, contractors and consultants is a vital element of most significant projects. Sourcing the best qualified external parties – contractors, suppliers and consultants – to work on your project remains one of the most critical elements of a successful project. This process starts with a well-managed tendering process based on advanced selection criteria and methods to ensure that only the best in the business is selected for your company.
Following the award of the contract, the contractual relationships between project owners and their suppliers, contractors and consultants, must be clearly defined and well-documented to enable the parties to perform according to the terms of the contract and provide adequate protection against non-performance by either party. Project Procurement, Contracting & Tendering course provides a systematic approach to the planning, development, negotiation and formulation of effective contracts and highlights the critical activities to be performed during the Pre-Award, Award, and Post-Award stages of the tendering and contracting processes.
Course Duration
5 Days
Who Should Attend
- Project and procurement staff
- Contract managers
- Buyers, purchasing staff
- Construction managers, and other staff requiring the skills to face the challenges involved in major contracting and subcontracting activities
Course Objectives
By attending Project Procurement, Contracting & Tendering program, Participants will learn how to:
- Apply the fundamentals of contract law
- Develop a systematic process and criteria for the selection of suppliers, contractors, and consultants
- Develop the contract to fairly and equitably distribute risk
- Understand the bidding/tendering and contract award processes
- Select and administer the most appropriate contract type for the project
- Develop the necessary negotiation skills to successfully negotiate contract terms and conditions
- Develop the project contract to ensure compliance with contract terms and conditions and avoid cost overruns and late delivery
Course Outline:
Module 1 - Fundamental Principles of Contracting and Contract Law
The fundamentals of contracting and contract law and examine some of the important conditions of legal contracts.
- Description of a Contract
- Risk Management Process
- Legal Obligation to Perform
- Primary Contractual Elements
- Project Procurement Processes
- Procurement and the Project Life-Cycle
- Fundamental Contracting Perspectives – Risk and Price
- Primary Project Success Factors
- Fundamentals of Contract Law
- Contractual Legality – Fundamental Elements
- Basic Conditions of Contracting
- General Conditions and Layout of Contract
- Contract Documents, Administration and Close-Out
Module 2 - Contract Terms and Conditions & Tendering Processes
Essential terms and conditions that should be included in all contracts and the various tendering processes.
- Conditions of Contract
- Primary Clauses for Consideration
- Contract Performance and Termination
- Dispute Resolution
- Supplier Sourcing, Contract Award and Administration
- Pre-Award Stage Preparations
- Award Stage Preparations
- Post-Award Stage Preparations
- Contract Execution
- Contract Administration
- Key Project Analysis Issues
Module 3 - Contract Types and Compensation
The range of typical contracting and compensation arrangements enable delegates to select the most appropriate contracting arrangement for the work to be done.
- The Pricing Arrangement Strategies
- Fixed Price contracts & pricing
- Cost-Plus contracts & pricing
- Incentive contracts & pricing
- Fixed Price Incentive
- Cost Plus Incentive
Module 4 - Contract Negotiation Strategy
The elements of the negotiation process, the various stages of negotiation, the sources of power during negotiation and the negotiation preparation process.
- The Ability to Influence
- Dealing with Conflict
- Primary Negotiation Styles
- Power and Negotiation
- Stages of Negotiation
- Preparation for Negotiation
- Preparation – A Systematic Process
- The Negotiation Plan
Module 5 - Aligning Incentive Contracts with Earned Value Management
The relationship between the contract and the work to be performed and how to monitor project progress and costs against the conditions of the contract.
- Earned Value Control Process
- Progress Control Charts – Trend Analysis
- Schedule and Cost Variance Forecasting
- Estimated Cost at Completion
- Estimated Duration at Completion
- Progress Tracking and Monitoring
