IACCM Certified Contract and Commercial Management Practitioner

Introduction

People enter Contract and Commercial Management discipline from a wide variety of backgrounds, often with little or no specific training. They may be financial or legal professionals, they may have come from sales or from a market intelligence function.

A key-value offered is that the IACCM learning provides everyone with a consistent base level of knowledge. IACCM also introduces the concept of a professional standard and matching certification, to encourage individuals in their continued development. This enables IACCM to deliver a valid assessment of current capabilities at Associate, Practitioner and Expert level.

Objectives

This course is designed to empower the participant with the skills and knowledge to understand and apply contracting principles and techniques in an operational or managerial role.

Practitioner Level (CCMP) is ideal for experienced (and semi-experienced) contract or commercial managers from both the public and private sector who would like to demonstrate significant achievements in the field, by gaining knowledge, methodologies, and exposure to best practices. At the practitioner level, it is expected that candidates will have some varied experience.

Training Methodology

Participants to this course will receive a copy of a comprehensive manual, copy of all slides and handout material with a thorough explanation of all the related subjects covered by the course outline with the presenter utilizing a variety of proven learning teaching and facilitation techniques. Student participation is encouraged with syndicate work, DVD material, case studies, and assessments.

Who Should Attend?

The course is also suitable for technical people, focal points, commercial managers, contract officers, customer account managers, sales managers, business development managers, project managers, team leaders and finance managers who have a responsibility for managing contracts, but may not be contract or commercial specialists, also This highly practical and interactive course has been specifically designed for:

• Contracting Professionals
• Contract Negotiators
• Contract Managers and Administrators
• Contract Attorneys
• Contract Drafting Professionals
• Contract Strategists
• Procurement Professionals
• Strategic Sourcing Professionals
• Supply Chain Management Professionals
• Commercial Managers
• Sales Account Managers
• Commercial Project Managers

Course Outline

Day 1: Initiate Topics

Module 1: Contract and Commercial Management Introduction

• This module introduces the course, and establishes the standards by which we work the principles of contracting.
• Outlines the concepts of best practice in contracting
• Define contract management and our role in contracting

Module 2: Contract Administration

• The purpose of the contract manager
• Pre-award and post-award responsibilities
• Involvement in contracting strategy
• Undertaking competitive and market research on commercial terms, policies and practices

Module 3: Requirements Definition

• The role of requirements as a basis for the scope of work
• The impact of a deficient requirements gathering processes
• Staying aligned with business drivers
• Requirements gathering tools and techniques
• Prioritization of requirements
• Frequently encountered issues in requirements gathering
• Causes for delay or failure

Module 4: Cost Benefit Analysis

• Total cost of ownership (TCO) and Return on investment (ROI)
• Payback period and break even analysis
• Balanced scorecard
• Cash flow analysis
• Using financial analysis to support effective business cases

Module 5: Sourcing Options

• Uncovering the build versus buy decision
• Evaluating and aligning with potential project scope
• Examining options and alternate methods of contracting
• Manage the sourcing processes
• Avoid the common sourcing mistakes
• Principles, drivers and risks of outsourcing

Module 6: Undertaking a Terms Audit

• Benefits of a terms audit and the consequences of inappropriate terms
• Approach to conducting a terms audit
• Scope and description
• Frequency and indications of need

Module 7: Cost Identification

• Finalizing the cost estimates
• Ultimate investment will depend upon effectiveness of negotiations and post-award management
• Tax and inter-company considerations (allocations)
• Fundamentals of finance and accounting
• Costing and pricing the bid

Day 2, Bid Topics

Module 8: RFI, RFP, RFQ

• Understand when to use an RFI, RFP, RFQ and their differences
• Defining and managing the content of each request type
• Managing the RFP process
• Assure strong representation in creating the RFP
• Supporting bids and RFPs

Module 9: Responding to RFPs

• Information on executing non-disclosure agreements
• The rationale for a bid process
• The bid process itself
• The role of Contract Management in the bid process

Module 10: Bid Process and Rules

• Describe the end to end bidding process
• Approaches to scoring and ranking suppliers
• Definition and contents of the RFP
• Managing the RFP process
• Managing the bidders and responding to their questions
• Pricing considerations
• Supplier notification and the BAFO process

Module 11: The Influence of Laws on the Bid Process

• Whose law will control and will it affect this contract?
• U.N. Convention on Contracts for the International Sale of Goods (UNCISG)
• Creation of a contract, offer, acceptance and revoking offers
• Closing the deal and dispute resolution

Module 12: Evaluation Criteria

• Evaluation framework and the rules for its application
• Weighting evaluation criteria and achieving consensus
• Confirm strategic priorities and relative ranking
• Common issues to be aware of in an evaluation matrix
• Implementing the evaluation framework
• Who should participate in the evaluation
• Scoring definitions and reconciling differences in approaches
• Evaluating alternatives to the responses

Module 13: Stakeholder Management

• The identification of stakeholders and their prioritization
• Understanding stakeholder needs
• Communicating with the stakeholder community
• Developing suppliers as stakeholders

Module 14: Understanding Markets and Opportunities

• Identifying potential markets and selecting the right agreement
• Market segmentation and competitive analysis
• Judging customer contracting sophistication
• Evaluation scope and techniques
• Evaluating the relationship and future opportunity

Day 3, Develop Topics

Module 15: Contract and relationship types

• Defining major contract types when they should be used
• Addressing contract issues
• Identify different relationships and their requirements.
• Outline different types of contract that can be entered into
• Consortium, a prime contractor and a sub-contractor

Module 16: Terms and Conditions Overview

• Basic contract components
• Common contract terms
• Contract review processes
• Evaluate clarity and completeness of basic contract elements
• Understand relevance of term and condition provisions

Module 17: Partnerships, Alliances and Distribution

• Describe why agents and distributors are used
• Factors that favour one or other approach
• Addressing relationship issues and dealer protection legislation
• Identify each relationship's requirements.
• Understand local, national and international laws that control the relationships
• Joint ventures, consortiums and teaming agreements
• Back to back agreements

Module 18: Statement of Work/Service Level Agreement Production

• SOW Key terms/functions
• Why a SOW is required
• Statement of work versus scope of work
• SOW/SLA Relationship
• Definition of an SLA and what customers require from an SLA
• Leading and lagging indicators
• Top tips for creating a robust statement of work

Module 19: Drafting Guidelines and Considerations

• Contract structure and supporting process
• Contract interpretation guidelines
• Understand drafting principles and rules
• Clarity above all else makes for a good contract
• Use (and misuse) of contract terminology
• Contract visualization

Module 20: Other Strategic Considerations

• How does your contracting function measure its value
• Approaches to streamlining contracts
• Outline example contract review checklists
• Incoterms
• Managing and identifying contract risk and approaches to minimise value leakage
• Principles and challenges of electronic contracting

Day 4, Negotiate Topics

Module 21: Negotiation Planning, and Objectives

• Principles and best practices of negotiation
• Understand the internal inhibitors to successful negotiated outcomes and how to control them

Module 22: Framing, Strategy and Goals

• Presuppositions of a negotiation
• Understanding the other side in the negotiation
• Developing a negotiations strategy
• Negotiation Stages
• What negotiators must understand before commencing a negotiation

Module 23: Negotiation Styles

• Understand the options for negotiation approaches
• Understand advantages and disadvantages of each
• Positional negotiation
• Principled negotiations
• Other approaches to negotiation
• When to use an approach, the risks and opportunities of alternative approaches

Module 24: Negotiation Techniques

• Understanding motivations
• The use of experts in negotiation
• Issues of relative power
• Opening the negotiation
• Responding to an opening offer
• Tactics, strategies and ethics
• Best alternative to a negotiated agreement (BATNA)

Module 25: Tactics, Tricks and Lessons Learned

• The "last gap"
• Behavioral analysis and proving worth
• Strategies and ethics
• Tricks and ploys

Module 26: Pricing and Financial Considerations

• Costing and pricing principles
• Price methods and structures
• Links to risk management
• Term variables
• Case studies and examples

Day 5, Manage Topics

Module 27: Implementation and Communication

• What makes for a risky deal and how to mitigate that risk
• Developing a communications plan
• Pre-award to post-award handover activities
• Communication to the various stakeholders
• Communications cycle
• A six step communication planning process
• Analyzing the contract

Module 28: Monitoring and Performance Management

• Schedule management
• Performance monitoring
• Quality control
• Tracking deliverables and acceptance

Module 29: Contract Change Management

• What is a change and who can initiate it?
• Examples of changes
• The effect of change
• Who can initiate change
• How do you design a change control process?

Module 30: Dispute Handling and Resolution

• Types of issues in a dispute
• Common causes of disputes
• Consequences of a formal dispute
• How to avoid a dispute
• Resolution steps, mediation, arbitration and litigation

Module 31: Contract Closeout

• Types of termination and close-out
• Required actions
• Termination of relationship
• Continuing obligations
• Records and knowledge capture
• Smoothly manage the contract closeout process
• Capture and utilise lessons learned for future use