Administration of Commercial Contracts
3 Days – Course No. CM02
Target AudiencE:
Contract Managers, Contract Administrators,
Procurement Managers, Project Managers
Prerequisites:
None
Learn How To:
◦ Effectively prepare for contract administration
◦ Avoid common problems and reduce risk
◦ Manage the change process more effectively
◦ Apply best practices of payment management, quality assurance and
completion criteria and acceptance
◦ Resolve disputes quickly and reduce costs
◦ Manage contracts to increase profitability
course Synopsis:
This course provides practical, in-depth
guidance on both carrying out the “routine” but vital responsibilities of
contract administration and handling the challenges that typically arise during
the life of a contract. You will learn how to use a proactive team approach to
successfully administer contracts of all types and sizes to increase
profitability and improve customer satisfaction.
This course introduces and clarifies basic
contract administration principles, policies, responsibilities, and proven best
practices. Using this foundation, you will then learn how to get contract
performance off to a good start through planning and kickoff activities. You
will also learn the importance of documentation and which specific types of
records and files must be maintained to protect your organization’s interests.
The course is highly interactive, using
discussion, exercises and case studies to teach effective approaches to
analyzing contract terms and conditions, assuring quality, managing changes,
resolving disputes and remedying inadequate performance. You will also see how
different legal systems affect contract administration practices.
course Topics:
Contract Administration: A Proactive
Process
◦ Purpose of contract administration
◦ Main tasks in contract administration
◦ Contract administration realities
◦ Contract administration is a team effort
◦ Buyer’s perspective vs. seller’s perspective
Contract Administration: Planning-Who
Does What, Where, and When
◦ Contract work breakdown structure (CWBS) as a tool
◦ Responsibility matrix
◦ Schedules
◦ Contract administration plans are a must
◦ Pre-performance meetings
•
Internal kickoff meeting
•
Meeting with the other party
Dispute Avoidance and Resolution-A
Proactive Approach to Problem Solving
◦ Open communication is critical
◦ Early identification of potential problems
◦ Measure/assess potential impacts
◦ Seek prompt resolution
◦ Importance of documentation
◦ Rules of contract interpretation
◦ Dispute resolution methods
•
Negotiation
•
Mediation
•
Arbitration
•
Litigation
Changes Management-Risk vs. Opportunity
◦ Types of changes
◦ Analyzing impacts
◦ Principles of changes management
•
Identification
•
Authorization
•
Estimation
•
Negotiation
•
Documentation
•
Implementation
◦ Do’s and don’ts
◦ Delegation of authority issues
Monitoring Progress-Tools and Techniques
◦ Performance observation
◦ Progress reports
◦ Performance variances
◦ Records
◦ Corrective action
Quality Assurance and Acceptance-What
Works
◦ Inspections and tests
◦ ISO 9000 series
◦ ISO 9001 and ANSI/ASQC Q91 and Q94
◦ Acceptance methods—what is best
◦ Acceptance criteria—what to do
◦ Types of warranties
◦ Warranty issues—cost vs. risk
Invoice and Payment Management-Cash Is
King
◦ Payment objectives
◦ Payment procedures
◦ Types of payments
•
Advance payments
•
Progress payments
•
Partial payments
•
Final payments
◦ Invoice preparation
◦ Early payment discounts
◦ Late payment penalties
Terminations-What to Know, What to do
◦ Mutual agreement
◦ Default or cause
◦ Notifications—what to say
◦ Settlements
Contract Closeout-Final Actions
◦ Administrative closeout
◦ Completion of work
◦ Closeout checklists
◦ Lessons learned database
Other Information:
Professional Development Units (PDUs):
22.5