COURSE OBJECTIVE:

• Discuss Elements Of Good Procurement Process
• Learn Methods Of Tender Evaluation
• Review Contract Strategies
• Explore Steps In Developing Performance Based Service Contracts
• See Examples Of Important Commercial Contract Clauses
• Be Presented The Essential Elements Of A Contract

WHO SHOULD ATTEND?

• Contracts, Purchasing, and Project personnel.
• Engineering, Operational, and Maintenance personnel.

COURSE OUTLINE: 

1. Formation, effective, structure & types of contracts

◦    Why we need contracts

◦    Basic principles in contract formation and contract effectiveness

◦    Invitation to Tender & contractual impact of Tender responses

◦    Form of Agreement

2. Main contract clauses and issues

◦    Rights & obligations under the contract

◦    Links between risk & reward for the contractor

◦    Transfer of title and risk – use of INCOTERMS

◦    The need for Insurance and indemnities

◦    Warranty and guarantee periods – latent design defect

◦    Notices

◦    Entire Agreement & Waiver

3. Contract Management & Tendering - When does the Process Start?

◦        What You Need To Know To Be Competent At Contract Management

◦        Elements Of A Good Procurement & Competitive Bidding Process

◦        Standards Of Ethical Practice

◦        Example Policy “Relations With Suppliers

◦        Basic Types Of Project Delivery

4. Developing the Tender

◦        Objectives Of The Contract

◦        Tender And Contract Check Lists

◦        The Important Integration Clause

◦        Inspection, Acceptance, Rejection

5. Important Elements of the Contract

◦             Saving With Economic Price Adjustment Clauses

◦             Force Majeure Clauses

◦             Letters Of Intent, Award, And Side Agreements

6. Bidder Selection and Tender Evaluation

◦             Selecting The Bidders

◦             Requesting Cost Breakdowns And Evaluations Of Cost Breakdowns

7. Managing the Contract Performance

◦             The Criticality Of Good Contract Administration

◦             Contract Changes

◦             Determining Status And Expediting

◦             Contractor Payments

8. Pre-contractual documents and documents of contract effectiveness

◦             Letters of Intent and Award, Instructions to Proceed

◦             Bonds

◦             Tender documents

◦             Parent Company Guarantees

9. Negotiation techniques

◦                 Pre-contract & post contract “qualification phrases”

◦                 Phases & Styles

◦                 Knowing how to recognize a “win”

◦                 When to walk away – the BATNA and how to understand the consequences

10. Modern Alternative Dispute Resolution (ADR)

◦                 Causes of contractual dispute and business impact

◦                 Should we litigate or arbitrate?

◦                 Other options – mediation, adjudication, expert determination

◦                 Reasons for looking at alternative methods of dispute resolution (ADR)