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ICTD International Centre for Training and Development

Procurement & Contracts Management Skills

Aug 25—29, 2019
5 days
Abu Dhabi, United Arab Emirates
USD 3300
USD 660 per day

How it works

Disclaimer

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Description

This course is designed to help companies award the right contracts to the best providers. Contracting involves many roles that must work together to negotiate, document, and ensure a reliable supply of goods and services for capital projects and ongoing operations. Everyone involved in contracting with suppliers and service providers must understand the entire process, the keys to success, and what is required of their role if contracts are to be effective in managing supply risks. Materials and exercises in this course are specifically built around oil and gas industry issues.

Course Objectives

At the end of the course participants will be able to:

  • Manage project and legal risks with the contracting process

  • Successfully manage disputes and contract performance issues

  • Know what is required in a successful tender package

  • Identify the appropriate contract price strategy to minimize financial risks and contract costs

  • Know the difference between cost and price analysis and how to use each technique to evaluate a proposal

  • Be appropriate commercial and legal contract terms and conditions

    Course Outline

Negotiation

  • Introductions

  • Purpose of the programme and objectives

  • Negotiation – a definition

  • The four phases of negotiation

  • The three types of negotiator – red, blue and purple

  • Comparing Approaches in Negotiations

  • Win/Win Win/lose or lose/lose approach

  • Exercise: Defining Negotiation Skill sets

  • Preparing for a negotiation

  • Preparation – the critical first step?

  • The most important thing to remember in negotiations

  • Steps in Negotiation Preparation

  • What is negotiation?

  • Identifying the “tradables”

  • Entry & Exit Points

  • Prioritizing

  • Time – reality perception?

  • Business cycle

  • Market conditions

  • Lead-time

  • Time limits – time as a tactic

The Purchasing Process

  • Supplier/buyer positioning

  • Rights and obligations of both buyer and seller

  • Raising and managing competitive invitations to tender

  • Requirements definition and prioritizing – the prelude to the negotiation

  • Tender evaluation criteria – ranking and weighting

  • Evaluating the proposal

  • Assess Strengths & Weaknesses

  • Setting the negotiation strategy

  • Pricing & Payments terms

  • Interim Payments – stage or milestone

  • Through life costs and considerations

  • Cost drivers – Transportation issues – title and risk transfer

  • Cost implications of inventory – JIT

  • Volume, Specification and Quality Standards

The Supplier’s View

  • Understanding elements of supplier cost to price structure

  • Understanding Supplier margins

  • Reducing Supplier prices without attacking their margins

  • Contracts and Special Clauses:

  • Types of contract

  • Warranties – standard, extended, design defect

  • Conditions – the core of the contract

  • Acceptance criteria – who, what, how, where and when

  • Spares, repairs, documentation and training

  • Failure to perform – remedies including Liquidated damages

  • Contract Price Adjustment Criteria

  • Fixed price or firm price?

  • Contract Price Adjustment Criteria & Clauses

  • Use of Price Indices

Preparing the Negotiating Strategy

  • The Discussion Phase

  • Team or individual negotiations

  • Preparing the team for pre-negotiation discussions

  • Confirming assumptions about initial positions

  • Negotiation objectives matrix

  • Impact of available competition

  • Final Preparation

  • How to handle the issue of authority

  • Determine strategies

  • Where and when

  • Planning the agenda

  • Team negotiations and roles

Common Negotiation Tactics & Countermeasures

  • Non-verbal communication

  • Undermining

  • Delaying Action

  • Questioning

  • Concessions

  • The “if” Statement

  • Comparative Options

  • Final Learning Review and analysis

  • Delegate feedback forms

  • Analysis against objectives

Course Methodology

A variety of methodologies will be used during the course that includes:

  • (30%) Based on Case Studies

  • (30%) Techniques

  • (30%) Role Play

  • (10%) Concepts

  • Pre-test and Post-test

  • Variety of Learning Methods

  • Lectures

  • Case Studies and Self Questionaires

  • Group Work

  • Discussion

  • Presentation

Who should attend

Individuals involved in any aspect of sourcing, tendering, selecting, forming, and executing contracts with suppliers of goods and services to the oil and gas industry. Included are project technical roles such as facilities engineers, drilling engineers, project engineers, commissioning engineers, contracts engineers, and planning engineers.

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Detailed Description
Detailed Description

Next dates

Aug 25—29, 2019
5 days
Abu Dhabi, United Arab Emirates
USD 3300
USD 660 per day

How it works

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