Managing and Administering the Contracts Cost-Effectively

Introduction

This is the first course in our Contract Management Professional Contract administration is a broad term used to describe management of the parties’ responsibilities in delivering contracts. At the core of each responsibility is the contract. This course briefly reviews the formation and interpretation of contracts as the rules of engagement between parties embarking on a project. It then looks and the processes of administration and management of the contract throughout the course of a project. Furthermore, the course will provide the knowledge for developing practical procedures to deliver a streamlined contract administration process.

Participants will also review the crucial interface between the contract administrator’s role and responsibilities, and that of the project manager project management functions. Finally, as claims processes are fundamental concepts in contract administration, the course examines the most common claims, with an emphasis on claims for variations and delays. The approach to dealing with delivery defects is also addressed. Teaching methods will include the interpretation of the examples provided.

Objectives

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

• Clarify the roles of the contract manager and contract administrator
• Understand key aspects of contracts: as a contract manager how to read, interpret and evaluate them
• Examine fundamental facets of contract administration and claims processes
• Appreciate the contractual issues surrounding variations, delays, and defects; and develop procedures to effectively deal with these issues
• Ensure both contract administration and project management endeavors emphasize contract compliance throughout the delivery process
• Analyze key principles of effective document control, reporting, and communication systems
• Discover cooperative negotiation and partnering skills for dispute avoidance and resolution

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practice. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This practical introductory course is relevant for those involved with any aspect of the management or administration of contracts, including developing or evaluating contracts, and performing day-to-day contract administration, or interacting directly with those who do – in any industry sector.

Course Outline

UNDERSTANDING CONTRACT MANAGEMENT

• Contract management principles
• Pre-award, award, and post-award considerations of contract management from both buyers’ and sellers’ perspectives
• Detailing the role of the contract manager
• Understanding where contract management fits with the broader organizational goals
• Strategic considerations behind contract management

THE CONTRACT – A MANAGEMENT PERSPECTIVE

• Understanding quoting and tendering to ensure proper process is maintained
• Pre-contractual negotiations – How to use them to ensure your desired risk transfer is achieved
• Contract formation – Various approaches and what to be careful of
• Documentation – Understanding the purpose and importance of various documents that make up a the typical set of contract documents
• Contractual interpretation – How to use it to inform sensible contract management decisions

CONTRACT PLANNING AND RISK MANAGEMENT

• Developing the the overall management plan for the contract
• Aligning contract planning with established organizational systems
• Evaluating risks
• Using contracts as effective risk management tools and developing strategies for mitigating risk that arises from contracts
• Making the contract effective in practice

THE CLAIMS PROCESS – THEORY AND PRACTICE

• Overview of the claims process
• Key points in formulating claims
• Key considerations in valuing claims
• The contract administrator’s relationships and responsibilities, and those of the project manager
• The administrator's role and limits of authority
• Examining other roles in the contract management network and their associated limits of authority/decision making power (contracts manager, superintendent, project manager, project director, development manager, functional manager, etc.)
• The interpersonal communication to make contracts happen
• Ethics in contract management – Are contractual obligations and ethics the same thing?

CONTRACT ADMINISTRATION AND PROJECT MANAGEMENT

• The interface between contract administration and project management
• The importance of effective systems for the administration of contracts
• Establishing timelines, lookups, and prompts
• Contract compliance: monitoring, reporting, and adherence to standards
• Document control and milestone planning
• Developing communication systems within the contract delivery hierarchy

CONTRACT MANAGEMENT SPECIFIC COMMUNICATION SKILLS

• Understanding how effective contract specific communication can
• facilitate optimum contract delivery and administration outcomes
• Pre-award conferences, the benefits, and disadvantages
• Pre-contract conferences – Their value and how to run them effectively
• Delegating effectively
• Dispute avoidance and resolution-contractual principles and practical procedures

CLAIMS, VARIATIONS, DISAGREEMENTS, AND DISPUTES

• Payment claims – The legal principles and the practical procedures
• Variations – Legal principles and practical procedures
• Delays, extensions of time, delay costs and damages – Legal principles and practical aspects of their management
• Defects – The contractual remedies and the practical procedures for ensuring they are realized