Overview

To manage costs, increase quality, and reduce risk, procurement has become a key part of the planning and coordinating process across projects. The purpose of this workshop is to provide students with a thorough grounding in the management of project contracts and procurement (short-term contracts, long-term contracts, and client-supplier relationships) and in the legal and financial issues therein.

Objectives

The aim of this workshop is to introduce the participants to tools and problems associated with managing both small and large project contracts, including procurement approaches. The aim of this workshop is to demonstrate how project managers handle contracts and coordinate the procurement process. Specific topics include the examination of procurement strategies and roles, including long-term contracts, short-term contracts, responsiveness, supplier-client relationships, etc. The workshop will also identify issues relating to contracts, including tendering, bidding, and other management processes, as well as the legal and commercial implications. Tools and techniques will be presented within each module covered.

Who should attend?

All professionals who take an active role in contracts and procurement management, including:

This Contracts and procurement Management training workshop is designed for individuals who plan, manage, control, specify or support the development or acquisition of goods and services. The workshop training will be of particular value to program managers, project sponsors, project managers, procurement managers and their planning advisers, project chief engineers, system engineers, stakeholders in the product being developed such as users and planners, and those responsible for the development of policy and processes in the fields of management, development, acquisition, and supply.

The workshop training will also be of value to anyone who interfaces with a project team and who seeks an understanding of how contracting and procurement are managed, e.g. members of functional units that interface with a project team such as Quality Assurance, Configuration Management, Human Resources, Safety, Training, Contracts, Finance, etc.

To summarize, the workshop training course will be of value to anyone who may take on a role within, or in relation to, a project team.

Learning outcomes

By the end of the workshop participants will be able to:

• ·Define the criteria for understanding project contracts;
• ·Discuss the fundamental concepts of procurement practices;
• ·Identify the legal and contractual obligations;
• ·Assess the importance of procurement to competitive business performance;
• ·Discuss how methods and techniques can be used in handling the extent of financial costing in projects.

Workshop structure

Module one – Introduction to contracts and procurement

• Procurement—business practice foundation
• Estimating and controlling procurement costs
• Collaborating with marketing and sales
• Managing legal issues and risks
• Strategic importance of procurement—the organisational value proposition

Module two - Procurement strategies

Topics

• ·The procurement process
• ·Procurement systems
• ·Project procurement methods

Module three - Procurement management: part 1

Topics

• ·Specifying requirements for procurement
• ·Developing a project procurement management plan
• ·Selecting and assessing suppliers
• ·Planning for procurement: make-or-buy decisions
• ·Tendering and bidding
• ·Tools and techniques for requesting supplier responses
• ·Tools and techniques for selecting suppliers
• ·Using online tendering

Module four - Contract negotiations

Topics

• ·Negotiating contracts
• ·Principled negotiation
• ·The principled negotiation process
• ·Conflict management and resolution

Module five - Contract management

Topics

• ·Types of contracts (fixed price and cost reimbursable)
• ·Risks associated with different contract types
• ·Performance contracting
• ·Managing contracts for optimum supplier performance
• ·Failure to perform
• ·Client-contractor resolution and cooperation

Module six - Procurement for competitive performance

Topics

• ·The role of the procurement manager
• ·Procurement consortia
• ·Procurement organisation within hosting organisation and the project
• ·Value management
• ·Project, programmes, portfolios, and procurement strategy

Module seven - Financial, legal, and operational aspects of procurement

Topic

• ·Information systems in project contract management
• ·Managing project reviews and audits
• ·Financial aspects of project procurement and contracts

Duration: 5 Days 35 Hours