Advanced Procurement & Contract Management

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Advanced Procurement & Contract Management

Course Objectives:      

Through this Master class you will be able to understand:

  • The requisite knowledge in order to operate their tender process with the highest levels of accountability and governance.
  • Both buyer and seller perspective in Tendering and submitting proposals.
  • Legal rights of parties at the Tender stage.
  • Commercial terms frequently used in a Tender document
  • The practices and procedures of governing tendering including: issuing, receiving and evaluation.
  • Expose participants to international best practices in dealing with LOI, MOU and NDA
  • Examine the business environment to foresee how the supplier/contractor may perform
  • Legal requirements of contracts and their implications
  • Have knowledge of contractual clauses
  • Explore the ethical issues in procurement
  • Examine the risks in Procurement
  • Understand Risk transfer through contracting terms and conditions
  • Effectively negotiate procurement contracts
  • Effectively handle claims, variations and disputes
  • Examine the steps involved in Pre-Award, Award and Post Award phase.
  • Lessons learnt and Best Practices.

Course Content:

Day One:

Session 1: Tender Basics

  • Definition of Tender
  • The competitive bidding processes
  • Two Step Sealed Bidding
  • Terms and Definitions
  • Types of Tender
  • E- Tendering
  • RFP, RFQ and ITB
  • EOI
  • Tendering Law (Case Study)

Session 2: Understand Contract Fundamentals with regard to Tendering & Procurement

  • Definition of Contract (when does an Agreement LOI/MOU become a Contract)
  • Offer or Proposal
  • Rejection of an offer / Counter offer.
  • Acceptance
  • Consideration
  • Purchase Order/Work Order
  • The battle of forms
  • Issues to considered when signing confidentiality/NDA
  • Letter of Acceptance/Letter of Tender/Letter of Intent & Letter of Award
  • Master Services Agreement (MSA)
  • Service Level Agreement (SLA)

Session 3: Tender Process Management

  • Tender Planning
  • Types of Tender
  • Contents of Tender
  • Pitfalls to avoid when drafting SOW
  • Steps involved in Tender Process
  • Tender Documents
  • Evaluation of Tender
  • Finding a Competent Contractor
  • Negotiations
  • Award

Session 4: Understanding Bid from the Sellers Perspective

  • How to write a powerful proposal
  • Evaluate Proposals
  • Understand Proposal Management
  • Understand Cost Benefit Analysis
  • Tips for Preparing Proposal that Win Contracts.
  • Best Practices in developing proposals

Session 5: International Best Practices in dealing with LOI, MOU and NDA-Documents signed at the time of Bidding.

  • Letter of Intent/Award
  • Memorandum of Understanding
  • Non -Disclosure Agreements

Day Two:

Session 6: Introduction to Procurement/Contract Management

  • Definition of Procurement/Contract Management
  • Four Key Components of Contract Management
  • Managing Service Performance
  • Managing Relationship
  • Contract Administration

Session 7: Ethics in Procurement

  • Introduction
  • Code of Conduct
  • Vendor/Supplier Code of Conduct
  • Vendor/Supplier Declaration
  • Ethical Concepts and Principles
  • Ethical Risk and Actions to Manage them.

Session 8: The risks associated with procurement/ Tools to Minimize the Risk

  • Dealing with Vendor non-conformance (NCR)
  • Breach/Material Breach of Contract
  • Liquidated damage’s/ Extension of Time (EOT)
  • Defects Notification Period (DNP)
  • Monitoring vendor/contractor service performance
  • Termination of Contract
  • Performance Guarantee/Bond
  • Retention Clause
  • Tender /Bid Bond
  • Advance Payment Bond
  • Parent Company Guarantee

Session 9: The methods of contracting

  • Contracting methods
  • Simplified methods
  • Formal Competitive methods
  • Sealed Bidding
  • Key steps in Source Selection
  • Reverse Auction

Session 10: ricing Arrangements in Procurement Contracts

  • Uncertainty and Risk in contracting
  • Fixed Price Contracts
  • Contract reimbursable Contracts
  • Time and Materials contracts
  • Unit/Item rate Contracts

Day Three:

Session 11: Pre-Contractual Phase: Planning

  • Prepare Procurement Plan
  • Write Scope of Work (SOW)
  • Develop the procurement strategy
  • Develop the solicitation document
  • Determine the appropriate contractor selection methodology

Session 12: Phase: Bidding and awarding of contract

  • Solicitation Process
  • Best Value and MEAT
  • Respond to inquiries from potential bidders
  • Hold Bidders’ Conferences
  • Negotiations
  • Conduct Site Visits
  • Evaluate competitive bids
  • Award a contract
  • Debrief unsuccessful bidders

Session 13: Contract management phase: After the contract is awarded

  • Contract Administration
  • Roles and Responsibilities
  • RASCI
  • Kick off Meetings
  • Contract governance
  • Variations and Dispute Management
  • Contract Close out
  • Lessons Learn
  • Disputes and Claims.

Session 14: Getting to grips with terms when reading Procurement contracts

  • Guarantee
  • Warranty
  • Misrepresentation
  • Implied provisions in contract
  • Condition Precedent/ Condition Subsequent
  • Assignment
  • Delegation
  • Indemnity
  • Force Majeure

Session 15: When things go wrong – Limit contractual risk for your organisation

  • Exclusion Clause – Limitation of Liability
  • Consequential Loss
  • Third Party Liability
  • Cap Indemnity Liability
  • Types of Insurance
  • Subrogation

Session 16: Rules of Interpretation of Contract

  • How are contracts interpreted
  • Dealing with ambiguity in contracts
  • Importance of priority of documents