Contracts Management – A Business Perspective

Introduction

“My word is my bond”, an age old saying where the spoken word was so potent and relationships, whether business or otherwise, were conducted based on trust and the reputation of the people involved. The world has changed. Risks of non-performance of either a social contract or business transaction has compounded into costly outcomes. Mere words may not be sufficient to mitigate unforeseen risks. Business organizations are embarking on airtight agreements to eliminate risks that could be managed. A written document that precisely spells out commitment and obligations of each party in a business relationship is the norm now. This written document – a contract, is a complicated, disciplined approach to outline, identify, manage and control the business relationship for mutual benefits of all parties involved. The document is written in precise language to avoid ambiguity and misinterpretations. Any business relationship will encounter challenging situations that may need immediate solutions. However, not all solutions will benefit everyone involved. A contract, then, has to address these and minimize risks and assign responsibilities.

In business contracts are agreement between two or more parties to conduct business in a specific manner that identifies risks and assign responsibilities and commitment of all parties involved. This document is an outcome of intense negotiation. Effectively negotiating, executing and controlling agreements is an important task, yet many organizations do a poor job of managing contracts. While negotiation plays an important role in the culmination of a contract, however it is the execution and management of the contract that ensures a successful business relationship. Failure to manage a contract effectively leads to cost inefficiencies and overruns, scope creep, project delay etc. Improper management of the contract further leads t protracted contract development and negotiation cycles, improper contract approvals, limited contract vi9sibility and control, and an inability to ensure compliance with established contract terms

How Will You Benefit

Upon completion of this programme, the participants will be able to :

• Understand your company needs and objectives
• Know preliminary work to be done before looking at contracting
• Understand what is a contract and how it works
• Understand the contribution of the SOW and RFP in a contract
• How to manage contract risks
• How to monitor contract performance and its progress
• The changing methods of managing contracts through software

Who Should Attend

• This course is designed for Procurement Managers & Executive, Contract & Client Managers & Executives, Project Managers / Leaders, Finance & Admin Officers, GLC & Government Contract Officers, Entrepreneurs
• Level for Admin Officers and above

Methodology

This course is essentially participative and practical, emphasizing learning through interactive lectures, group discussions, exercises / cases, questions and answers

Module

• ESTABLISHING CONTRACT NEEDS
• PRE-CONTRACT FUNDAMENTALS
• UNDERSTANDING CONTRACTS
• THE CONTRACT DRAFTING
• THE ESSENTIAL PRELIMINARIES OF A CONTRACT
• CONTRACT PERFORMANCE AND PROGRESS MONITORING
• SOFTWARE TO MANAGE CONTRACTS