Negotiating, Constructing, Drafting and Managing Commercial Contracts

Course Title: Negotiating, Constructing, Drafting, and Managing Commercial Contracts

Course Duration: 5 Days

Course Overview:
This five-day program equips participants with essential skills in contract negotiation, drafting, and management to align with corporate objectives and optimize contract outcomes. Participants will learn to avoid common pitfalls, enhance contract profitability, achieve a balanced risk-price ratio, and create winning tenders. This course also covers selecting the right procurement and negotiation strategies, understanding contract law, and managing international contracts. Through practical exercises and real-world scenarios, attendees will develop a structured approach to contract management that supports effective delivery and minimises costs.

Course Objectives:

• Avoid common contractual pitfalls and draft cohesive agreements.
• Enhance contract profitability and cost-effectiveness.
• Negotiate contracts with a balanced approach to risk and price.
• Develop winning tender strategies for competitive advantage.
• Identify, manage, and mitigate contractual risks.
• Gain a foundational understanding of contract law essentials.
• Define performance terms to ensure delivery efficiency.
• Address international contract considerations effectively.
• Use structured approaches to manage and control contracts.

Day 1: Essentials of Contract Negotiation

• Understanding Corporate Objectives and Contract Goals
  Aligning contract goals with Organisational objectives.
• Selecting the Right Procurement and Negotiation Strategy
  Tailoring approaches to different contract types and goals.
• Achieving Balanced Risk and Price in Negotiations
  Strategies to manage and distribute risk effectively.

Activities: Workshop on procurement strategy selection; role-play exercises on risk-price negotiations.

Day 2: Constructing and Drafting Effective Contracts

• Avoiding Common Contractual Pitfalls
  Identifying and mitigating common contract drafting mistakes.
• Defining Clear Terms and Requirements
  Ensuring that Organisational needs are incorporated effectively.
• Performance Terms and Clauses
  Drafting clauses that guarantee effective performance and cost minimization.

Day 3: Improving Profitability and Cost-Effectiveness

• Profit and Cost Optimization Techniques in Contracts
  Understanding how to structure contracts to maximize financial benefits.
• Producing Winning Tenders
  Steps to develop competitive tenders that meet Organisational needs.
• Pricing Strategies and Cost Control Mechanisms
  Balancing pricing with performance to ensure cost-effective contracts.

Activities: Case studies on successful tender development; group discussion on cost control strategies.

Day 4: Risk Management and Legal Aspects of Contracts

• Identifying and Managing Contractual Risks
  Exploring risk management strategies specific to commercial contracts.
• Foundations of Contract Law
  Understanding critical legal concepts in contract management.
• Mitigating Legal and Financial Risks
  Reviewing clauses and terms to reduce potential liabilities.

Activities: Workshop on risk identification and mitigation; review of contract law essentials with practical examples.

Day 5: Managing International Contracts and Contract Control

• Unique Issues in International Contracts
  Addressing challenges in international contract management, including compliance and cultural differences.
• Structured Contract Management and Control
  Implementing a structured approach to monitor contract performance and compliance.
• Dispute Resolution in International and Domestic Contracts
  Planning for and managing disputes proactively across contract jurisdictions.

Activities: Scenario-based discussion on international contracts; development of a contract management plan; final assessment and Q&A session.