Contract Management Principles & Practices

Staff involved in the contracting process need to be effective and efficient in applying contract management principles and practices. Without the necessary knowledge and skills, they won’t obtain the best results from contractors, service providers, vendors and other business partners with whom their organisation is doing business. Procurement and supplier management can be a hazardous process which will trip up the untrained or inexperienced manager. This Contract Management Principles & Practices training course will give those staff the foundations to manage third-party suppliers effectively – whether in the field of construction, the supply of equipment and materials, or in the delivery of services.

This training course will feature:

• What can go wrong when managing a supplier contract – and how it can damage your business
• How to spot – and prepare for – the risks that lie ahead in a contracting situation
• How to control contract performance from the start – by setting an appropriate management framework, before the contract is signed
• Why you need to motivate your third-party supplier, and the range of techniques to use to improve his results for you
• What to do if things go wrong – including stepping in, substitution, terminating and dispute resolution

By the end of this training course, participants will be able to:

• Provide better outcomes from contracts
• Monitor contract performance
• Know how to analyse contract obligations and risks
• Prepare for contract claims and disputes 
• Control variations to contract
• Manage contract default, and consider remedies including termination

This training course will be appropriate for a wide range of professionals but will greatly benefit:

• Procurement Officers
• Contract Engineers
• Contract Analysts and Administrators
• Other Contracts and Procurement professionals
• Supply Chain Management team members involved in the preparation and evaluation of bids and tenders, and the management of works construction, the supply of equipment and materials, or in the delivery of services

This Contract Management Principles & Practices training course will use a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the materials presented. The training course will be lively and interactive and will include tests and exercises, role plays, case studies, practice sessions, group discussions and presentations and Q&A. Participants will receive personal feedback on their performance. The learning experience will be supported by electronic reference manual containing model documents and templates.

• What is Effective Contract Management and why do we need it?
• The causes and effects of contract failure
• Analysis of the Contract requirements
• Defining the Job to be done – specifications and the scope of work
• Key Players in Contract Management

• Identifying risks affecting time, cost and quality
• Responses to risk
• Contract Types and how they manage risk
• Important contract clauses about risk
• Using Bonds and guarantees
• Contract templates: FIDIC, NEC and other standard models 

• Building a relationship for supplier performance
• Motivational techniques – carrots and sticks
• Contractor warranties
• Monitoring service performance
• Service Level Agreements
• Tools and techniques for contract default

• Setting the supplier’s agenda on costs and prices
• Cost and Price analysis methods
• Using economic price adjustment techniques
• Price transparency and cost breakdowns
• Managing the financial impact of contract variation
• Negotiation techniques for improving value for money 

• Handling contractor claims
• Operating the liquidated damages clause
• Preventing or resolving disputes
• Handling defect liability and retention sums
• Contract administration tasks from award to close out
• Contract termination and handover

Anderson Certificate of Completion will be provided to delegates who attend and complete the course