CONTRACT & TENDER MANAGEMENT

CONTRACT & TENDER MANAGEMENT

Objectives:

• 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

Course contents:

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

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

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

Developing the Tender

• Objectives Of The Contract
• Tender And Contract Check Lists
• The Important Integration Clause
• Inspection, Acceptance, Rejection

Important Elements of the Contract

• Saving With Economic Price Adjustment Clauses
• Force Majeure Clauses
• Letters Of Intent, Award, And Side Agreements

Bidder Selection and Tender Evaluation

• Selecting The Bidders
• Requesting Cost Breakdowns And Evaluations Of Cost Breakdowns

Managing the Contract Performance

• The Criticality Of Good Contract Administration
• Contract Changes
• Determining Status And Expediting
• Contractor Payments

Pre-contractual documents and documents of contract effectiveness

• Letters of Intent and Award, Instructions to Proceed
• Bonds
• Tender documents
• Parent Company Guarantees

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

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)

Who will benefit?

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