Contract Management Principles and Practices

1. Introduction to Procurement Management

• Contract schedule network diagram
• Terminology - procurement and contracting
• Contract definition - practical and legal
• Purpose of contracts
• Risk transfer through contracting
• Definition of contracting success
• Stakeholder mapping
• Stakeholder expectations
• Communications chain

2. Needs Analysis

• Objectives to requirements documents
• Requirements documents to SOW
• Contract types
• Contract management mistakes
• Role of legal department

3. Plan Procurements

• Planning documents
• Requirement documents
• Procurement management plan
• SOW
• Bid packages
• Tender documents
• Source selection criteria

4. Conduct Procurements

• Stakeholder mapping
• Vendor participation
• Advertising and bidder conferences
• Proposal evaluation techniques
• Paper trail and due diligence
• Principled negotiations vs. positional negotiations
• Objectives of negotiations processes

5. Administer Procurements

• Stakeholder mapping
• Procurement team
• Vendor relationship management
• Monitoring performance
• Contract change controls
• Contract amendment
• Performance reviews
• Payment systems
• Claims administration

6. Close Procurements

• Stakeholder mapping
• Early termination
• Lessons learned
• Procurement audits
• Negotiated settlements
• Contracting problems and their solutions
• Ingredients for contracting success

Hands-On Exercises

• Contracting schedule network diagram: Estimating procurement durations and total elapsed time
• Strategic analysis of procurement strategy using SWOT technique
• Evaluating bid proposals: Source selection and ranking of bids
• Development of SOW documents: Source selection criteria and weighting system, performance and quality standards, and negotiating priorities
• Integration of contract type, terms, and conditions into project schedule and risk management plans
• Role playing: Negotiations between buyer and vendor over contract terms
• Contract closure and collection of lessons learned