Course Overview:
Contracts form the backbone of business transactions, making contract and tender management a crucial skill for organizational success. This intensive course provides participants with strategic insights and practical techniques, covering essential areas such as negotiation, price and cost analysis, risk management, source selection, contractor evaluation, and managing contract changes, variations, and disputes. Participants will leave with the knowledge and skills to maximize contract value, mitigate risk, and support their organizations’ strategic goals.

Course Outcomes:
Strengthen negotiation skills to achieve organizational objectives.
Perform thorough price and cost analyses for fair, sustainable contracts.
Differentiate and leverage contract types for strategic risk management.
Mitigate risks related to pricing volatility and material supply.
Apply performance-based service contracting to ensure effective outcomes.

Course Content

Module 1: Foundations of Contracting and Procurement
Best Practices in Contracting and Procurement
Examining the building blocks of effective contracting and procurement processes.
Creating Effective Contracts
Steps for developing clear, fair, and enforceable contracts that protect organizational interests.

Module 2: Cost and Pricing Analysis
Cost Analysis Essentials
Fundamentals of cost analysis, overhead allocation, and fair profit assessment.
Pricing Models and Strategies
Exploring pricing models that drive value and efficiency in contract terms.

Module 3: Managing Contract Risk
Contract Types and Risk Allocation
Understanding risk management through various contract types like Fixed Price and Cost-Reimbursement.
Economic Price Adjustment Clauses
Using clauses to address price volatility and safeguard against market fluctuations.

Module 4: Source Selection and Contract Development
Source Qualification and Tender Criteria
Establishing pre-qualification and tendering standards to ensure reliable vendor selection.
Drafting Contract Essentials
Key rules for drafting robust contracts, with focus on terms, conditions, and performance requirements.

Module 5: Contract Negotiations
Negotiation Strategy and Execution
Crafting effective negotiation strategies that align with organizational goals.
Essential Negotiation Rules and Tactics
Best practices, including preparation techniques, leveraging BATNA, and handling multiple negotiation issues.

Module 6: Contract Administration and Closeout
Managing Post-Award Responsibilities
Overview of contract administration tasks, such as handling scope changes and ensuring compliance.
Contract Termination and Close-Out Procedures
Best practices for orderly contract close-out, addressing force majeure, and ensuring fulfillment of contract terms.

Learning Activities:
Participants will engage in a range of interactive activities, including group discussions, case studies, negotiation role-plays, and practical exercises on cost and pricing analysis. These hands-on exercises build critical skills in contract drafting, negotiation, and administration.
Target Audience:
This course is ideal for procurement professionals, contract managers, project managers, and any individuals involved in contract management, administration, or tendering within their organisations.