Negotiation and Contracting in Procurement and Supply

Introduction

The Multilateral Development Banks, led by the World Bank are introducing changes to modernize their procurement practices with more robust strategic planning, more choice of procurement options, and a greater focus on value for money and fit for purpose solutions. The changing economic needs of parties over the duration of long term projects need to be reflected in mechanisms to change existing contracts without having to revert to new procurement processing. This requires both careful appraisal and management of risk apportionment at the outset of the procurement process and the ability to deliver change without fracturing party relationships to the cost of both.

This workshop will feature a comprehensive best practice understanding of:

• How to Undertake Contract change both Before and After Procurement of Equipment and Works
• How to Manage and Reduce Cost and Risk
• The Mechanics of Change in Standard Form Contracts
• How to Preserve Project Budgets
• Meeting the Challenge of Re-programming

Objectives

By the end of this workshop, participants will be able to:-

• Develop a procurement strategy which accepts the need for potential contract change
• Avoid conflict in change management
• Appraise what is required to measure and deal with risk management
• Select the optimal procurement arrangements
• Develop a contract management plan

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 practices. 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 Contract Management in Public Procurement workshop is suitable to a wide range of professionals but will greatly benefit those who need a sound working knowledge of the new Procurement Frameworks of the World Bank and African Development Bank, including the personnel of European Agencies & Institutions, Government Offices & Agencies, International Organizations, Universities & Research Institutes, etc.

• Project Managers and Team Leaders need to understand strategic procurement planning
• Technical Specialists such as Engineers involved in the procurement
• Professionals that need to understand the new approach to procurement financed by Development organizations
• Procurement Professionals that need to understand a best practice approach to procurement

Course Outline

Contract Change Risk and Strategic Procurement in the Context of World Bank Financed Projects

• Introduction to Strategic Procurement in the World Bank Context

• Contextualizing the Problem of Contract Change and Analysing Risk in Contracting

• Standard Form Contracting as a response to meeting Risk

• Risk Analysis from Operating Context, Supply Market, and Previous Experience

• Options to Manage Supply Risks through the Procurement Arrangements

• Organizational Needs and Legal Requirements

Using the Contract to Facilitate Change

• Contract Terms Restricting Change and Deemed to Know Provisions

• Assignment, Alienation of Rights and Sub-contracts, Force Majeure and Frustration

• Contract Terms used as a Vehicle for Change: Variations Clauses, Change Orders and Notices

• Contract and Risk Management Plans: Linking Needs to Specifications, Evaluation Criteria and KPIs

• Measuring the Impact of Change

• Summary and Key Learning

Contract Formation and Management

• The key elements of a Competitive Tendering Process

• Delivering the contract’s objectives in Scope, Cost, Time and Quality

• An assessment of different contract types including partnering

• Using contract strategies to manage supplier risk

• The value of a contract management plan

Bidder Selection, Tender Evaluation, and Negotiations

• Sourcing the Bidders – ensuring value and a decision ­ audit trail

• Developing evaluation criteria – aligned with your required outcomes

• Tips on ensuring an efficient – and effective – tendering process

• Managing the contract award

• Developing and using negotiation skills – key points to consider

Managing the Performance of the Contract and Next Steps

• The Criticality Of Good Contract Administration

• Managing Contract Changes – effectively

• Handling contract claims and disputes

• Review and Summary

• Program highlights and final observations