# Introduction

Contracts are fundamental to all commercial transactions, and effective contracts management is a critical competency for successful organizations. The world’s leading companies recognize that mastering best practices in contract management leads to increased profits and enhanced productivity.

This GLOMACS training course on Mastering Contracts Management offers both strategic and practical insights into:

– Contract management negotiations
– Price and cost analysis
– Managing risk through different contract types
– Critical source selection and contractor evaluation
– Handling changes, variations, and claims disputes

### Objectives

Participants in this Mastering Contracts Management course will:

– Develop negotiation skills to align with organizational goals
– Explore essential aspects of price and cost analysis
– Differentiate contract types and understand their risk implications
– Learn how to address fluctuating material prices and associated contract risks
– Evaluate performance-based contracting methods

### Training Methodology

Participants will enhance their knowledge and skills through various instructional methods, including presentations by a seasoned contract management professional with extensive experience. The course will feature individual and group exercises, case studies, checklists, and discussions on current practices and new concepts.

Attendees are encouraged to present challenges for confidential discussion and share their experiences regarding specific issues within their organizations. A comprehensive course manual in electronic format will be provided for practical application and reinforcement. Time will be allocated for general discussions and one-on-one consultations with the experienced consultant.

### Organizational Impact

Organizations will benefit from:

– Improved outcomes in commercial transactions and contracts
– Highly trained contract management personnel
– Continuous enhancement of contract management practices
– Increased productivity of staff involved in contract activities
– Ensured high value addition to the contracting process
– Enhanced contractor performance, leading to commercial benefits

### Personal Impact

Participants will gain:

– Mastery of contract management skills
– Exceptional negotiation abilities
– Opportunities for professional development
– Increased job satisfaction
– Recognition within their organization, potentially leading to advancement
– Greater confidence in leading, planning, and managing the entire contract process

### Who Should Attend?

This GLOMACS training course is designed for personnel involved in the planning, evaluation, preparation, and management of tenders, projects, specifications, awards, and contracts. It is ideal for those in organizations seeking to enhance the competency levels of their staff in these areas.

This Mastering Contracts Management course is particularly beneficial for:

– Contract professionals
– Tendering, purchasing, and procurement specialists
– Project management professionals
– Engineering, operational, finance, and maintenance staff

### Course Outline

**Day 1: Good Contracting and Procurement Practices**
– Key elements of an effective contracting and procurement process
– Understanding cost and pricing
– Conducting cost analysis
– Allocating overheads
– Determining fair profit margins
– Exploring pricing models

**Day 2: Contract Types and Payments**
– Managing contract risks
– Understanding the contract risk-sharing continuum
– Implications of different contract types
– Fixed-price vs. cost-reimbursement contracts
– Innovative contract types
– Economic price adjustment clauses
– Invoices and payments management

**Day 3: Source Selection and Contract Development**
– Processes for source qualification
– Developing pre-qualification and tendering criteria
– Key rules for drafting contracts
– Defining terms and conditions
– Forming the contract
– Implementing performance-based contracting

**Day 4: Contract Negotiations**
– Understanding the role of negotiation
– Defining negotiation and its importance
– Characteristics of effective negotiators
– Essential rules of negotiation:
– A quote is never a fixed number
– The best-prepared negotiator wins
– Have multiple issues and a Best Alternative to a Negotiated Agreement (BATNA)
– Negotiation tactics

**Day 5: Contract Administration and Close-Out**
– Overview of post-award functions and responsibilities
– Duties involved in contract administration
– Managing scope of work variations
– Addressing force majeure situations
– Understanding termination processes
– Successfully closing out contracts

### Conclusion

This comprehensive training course equips participants with the essential knowledge and skills needed to master contract management, leading to improved organizational performance and successful commercial outcomes.