Contracting for Project Managers: Principles and Practices for Success

You Will Learn How To

Apply effective contracting strategies and techniques to maximise results and minimise risk
Manage an effective contract life cycle
Identify strategies and tactics to select the most qualified vendors
Orchestrate the negotiation process for "win-win" outcomes
Employ best practices for contract administration and execution
Ensure delivery of intended objectives and successful contract closure

Course Benefits

As contracts continue to be the foundation of business relationships, organisations need to implement effective contract management practices to avoid risk and achieve optimal outcomes. This course provides you with the knowledge and skills to successfully manage and execute the contracting process. Throughout the course, you learn how to implement the contract life cycle and avoid common pitfalls.

Who Should Attend

Project managers, contract managers and other professionals involved in the contract management life cycle. This course benefits all stakeholders involved in the buying and selling roles. Experience at the level of Course 296, "Project Management: Skills for Success", is recommended but not required.

Workshop Course

Through extended experiential activities, you simulate real-world situations and practise contract management skills and techniques: Practical exercises include:

Identifying common issues in the process
Applying decision-making models for vendor choice
Determining the appropriate contract type
Demonstrating the buyer vs. seller position
Creating a comprehensive Request for Proposal
Employing effective negotiation techniques
Reviewing the meaning of legal terminology within the contract
Analysing the impact of a contract change request

Course Content

Rationale for Contracts

Avoiding, mitigating and transferring risk
Controlling costs with supply chain participants
Managing buyer-seller relationships

Defining Contract Principles

Establishing a foundation in law

Clarifying the elements that constitute a binding contract
Demystifying legal jargon

Surveying appropriate pricing options

Analysing key drivers
Evaluating suitability of terms

Launching the Contract Life Cycle

Justifying the contract

Conducting a needs analysis
Determining "make" or "buy" decisions

Preparing a procurement plan

Setting contract objectives and statement of work
Creating the communications plan
Developing the contract approach

Qualifying potential vendors

Gathering market intelligence
Analysing capabilities against specified criteria
Narrowing the field of suppliers

Leveraging communication for "win-win"

Addressing the conflicting needs of buyers and sellers
Selecting efficient methods for obtaining information

Optimising Vendor Selection

Soliciting vendor submissions

Reviewing key components
Processing and disseminating the request

Refining criteria for evaluation

Applying PMBOK^® Guide and other best practices
Employing analytic and heuristics tools and techniques

Assessing submissions

Establishing review processes
Evaluating vendor services and products
Visiting vendor sites for optimum effect
Performing due diligence of vendor choices
Handling a "no bid" scenario

Negotiating Favourable Results

Employing principles and tools

Selecting a suitable negotiation model
Creating an effective plan

Addressing tactical considerations

Anticipating the seller's strategy
Preparing the buyer's strategy

Influencing negotiation

Orchestrating roles and expectations
Leveraging the environment for successful outcome

Finalising the contract terms

Drafting the document
Applying change in a controlled manner
Obtaining stakeholder signature approval

Executing the Contract

Administering the contract

Buyer versus seller perspectives
Project manager role during implementation

Applying contract administration tools

Performance reviews
Inspections audits
Payment systems claims
Administration reports

Coordinating multiple contracts

Integrating with the project
Assessing the impact within the organisation

Managing issues

Conducting impact analyses
Identifying, assessing and mitigating risk

Managing change

Implementing change control procedures
Responding to exception conditions
Modifying contracts based upon change requests

Closing the Contract

Completing terms and conditions

Verifying scope delivery
Transferring service into operational control
Authorising final payment to vendor

Ongoing support and maintenance

Service Level Agreements, warranties and guarantees
Managing updates and upgrades

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