Contract Writing, Planning and Management

Introduction

The contract is at the heart of all commercial transactions. Those involved in these transactions have the duty as agents of the organization to develop a high level of competency in contract writing, planning, and management. This program is designed to assist in that development by providing:

• The contract planning process
• Thorough understanding of contract types
• The critical elements of a contract
• Specific contract clauses to improve performance

Objectives

By the end of this course participants will be able to:

• Review contract planning by risk assessment
• To gain knowledge of Contract types
• Learn how to write contract clauses to protect the owner
• Be presented important elements of a Contract
• Explore how to develop better contract provisions
• Be able to structure economic price adjustments
• Review specific contract clauses to improve performance
• Discuss Important elements of Contract Management

Target Audience

• Contracts, Purchasing, and Projects personnel
• Engineering, Operational, and Maintenance
• All other personnel who are involved in the planning, development, approval, and management of contracts that cover the acquisition of materials, equipment, software, and services and who are in organizations whose leadership want high levels of competency in those involved in these activities

Purchasing & Logistics Outline

The course covers the following topics:

Important Elements of Contract Management

• Essential Activities in Contract Management
• Planning the Contract
• Identify Basic Planning Assumptions
• Reviewing Historical Data Check List
• Basic Items That Should Be in A Statement Of Work
• Elements of Risk
• Determining Contract Type by Risk Strategies

Planning the Contract Document

• Developing the Economic Price Adjustment Clause
• Managing Expectations
• Obligation Documents
• Important Elements and Objectives of The Contract
• Use A Contract Check Lists
• Important Implications of The Integration Clause
• Buyer’s Rights Before Performance Is Due

The All-Important Commercial Clauses

• Example Clauses Inspection, Acceptance, Rejection
• Major Issues Related to Warranties
• The uniqueness of Service Contracts
• Including Performance Measures in The Contract
• Does the Penalty Clause Add Value?
• Methods of Payment
• Don’t Overpay Progress Payments
• Large Software Acquisitions

Contract Issues after the Award

• How to Deal with Contract Changes
• Types of Contract Termination
• Breach of Contract
• Bonds and Guarantees
• Preparing for Contract Disputes
• Contract Clauses for Disputes
• Legal Concepts That May Supplement Written Terms

New Issues to Consider in Contract Writing and Management

• Buying in Groups
• The New Engineering Contract (NEC)
• Supporting E-Commerce
• Clauses Related to Fraud Prevention
• Contract Review Process
• Improve Personal and Project Management