Course Overview:
Contracts lie at the heart of all business transactions, making contract management an essential skill for successful organizations. Leading companies understand the value that mastery in contract management brings, including improved profits, enhanced productivity, and effective risk mitigation. This intensive course provides participants with both strategic insights and hands-on techniques in contract management, covering critical areas like negotiations, price and cost analysis, risk management, source selection, contractor evaluation, handling changes and variations, and resolving claims and disputes.
Course Outcomes:
Enhance negotiation skills to meet organizational objectives.
Conduct detailed price and cost analysis to ensure fair and sustainable contracts.
Differentiate between contract types to strategically manage risk.
Manage volatile pricing and material risk through contract terms.
Apply performance-based service contracting methods effectively.

Course Content

Module 1: Foundations of Contracting and Procurement
Best Practices in Contracting and Procurement
Examining the essential elements of a successful contracting and procurement process.
Building Effective Contracts
Understanding the critical steps to create contracts that are fair, clear, and enforceable.
Module 2: Cost and Pricing Analysis
Cost Analysis Fundamentals
Techniques for cost analysis, overhead allocation, and determining a fair profit margin.
Pricing Models
Exploring pricing models and methodologies to support cost-effective contract terms.
Module 3: Managing Contract Risk
Contract Types and Risk Allocation
Understanding risk distribution across different contract types: Fixed Price, Cost-Reimbursement, and more.
Economic Price Adjustment Clauses
Using adjustment clauses to manage price volatility in fluctuating markets.
Module 4: Source Selection and Contract Development
Source Qualification Processes
Establishing robust pre-qualification and tendering criteria.
Drafting Contracts
Key rules for effective contract drafting, including terms, conditions, and performance requirements.
Module 5: Contract Negotiations
The Role of Negotiation
Developing strategies and techniques for effective negotiation.
Key Negotiation Rules and Tactics
Rules for preparation and handling negotiations, including leveraging multiple issues and developing a BATNA.
Module 6: Contract Administration and Closeout
Post-Award Contract Management
Overview of contract administration responsibilities, including managing scope changes and variations.
Contract Termination and Close-Out
Effective practices for contract termination, handling force majeure, and completing contract close-out tasks.

Learning Activities:
The course combines group discussions, case studies, and hands-on exercises to build practical skills and enhance understanding. Participants will engage in negotiation role-plays, analyse real-life scenarios in cost and pricing, and apply best practices in contract drafting and administration.
Target Audience:
This course is ideal for procurement professionals, contract managers, project managers, and anyone responsible for managing contracts within their organization.

By the end of this course, participants will be equipped to strategically manage contracts, effectively negotiate terms, control costs, and ensure compliance with contract requirements, leading to optimised outcomes for their organisations.