Training on Project Procurement, Contracting and Tendering

Module 1: Fundamental Principles of Contracting and Contract Law

The fundamentals of contracting and contract law and examine some of the important conditions of legal contracts.

• Description of a Contract

• Risk Management Process

• Legal Obligation to Perform

• Primary Contractual Elements

• Project Procurement Processes

• Procurement and the Project Life-Cycle

• Fundamental Contracting Perspectives – Risk and Price

• Primary Project Success Factors

• Fundamentals of Contract Law

• Contractual Legality – Fundamental Elements

• Basic Conditions of Contracting

• General Conditions and Layout of Contract

• Contract Documents, Administration and Close-Out

• Case Study: Analysis of a real project failure due to improper contract documentation and legal oversight

• Practical Exercise: Review and critique a sample contract for legal completeness and risk exposure

Module 2: Contract Terms and Conditions & Tendering Processes

Essential terms and conditions that should be included in all contracts and the various tendering processes.

• Conditions of Contract

• Primary Clauses for Consideration

• Contract Performance and Termination

• Dispute Resolution

• Supplier Sourcing, Contract Award and Administration

• Pre-Award Stage Preparations

• Award Stage Preparations

• Post-Award Stage Preparations

• Contract Execution

• Contract Administration

• Key Project Analysis Issues

• Case Study: Lessons learned from disputes arising from ambiguous contract clauses

• Practical Exercise: Draft key clauses for a sample contract, ensuring clarity and compliance

Module 3: Contract Types and Compensation

The range of typical contracting and compensation arrangements enable delegates to select the most appropriate contracting arrangement for the work to be done.

• The Pricing Arrangement Strategies

• Fixed Price contracts & pricing

• Cost-Plus contracts & pricing

• Incentive contracts & pricing

• Fixed Price Incentive

• Cost Plus Incentive

• Case Study: Comparing contract performance outcomes under Fixed Price vs Cost-Plus arrangements

• Practical Exercise: Determine the most suitable contract type for a given project scenario

Module 4: Contract Negotiation Strategy

The elements of the negotiation process, the various stages of negotiation, the sources of power during negotiation and the negotiation preparation process.

• The Ability to Influence

• Dealing with Conflict

• Primary Negotiation Styles

• Power and Negotiation

• Stages of Negotiation

• Preparation for Negotiation

• Preparation – A Systematic Process

• The Negotiation Plan

• Case Study: Successful negotiation tactics applied in a multi-million-dollar procurement deal

• Practical Exercise: Role-play negotiation with assigned positions and objectives

Module 5: Aligning Incentive Contracts with Earned Value Management

The relationship between the contract and the work to be performed and how to monitor project progress and costs against the conditions of the contract.

• Earned Value Control Process

• Progress Control Charts – Trend Analysis

• Schedule and Cost Variance Forecasting

• Estimated Cost at Completion

• Estimated Duration at Completion

• Progress Tracking and Monitoring

• Case Study: Using Earned Value Management to detect and correct project schedule and cost deviations

• Practical Exercise: Apply earned value calculations to a sample project scenario and interpret results