Course Description
Good endings usually require good beginnings. This is
particularly true for contracting where best practices in tender management are
essential for a successful project outcome and minimization of total cost. This
program is designed to provide knowledge in:
·
Critical
issues of understanding owner and contractor objectives
·
Risk
mitigation thru contract types
·
Evaluating
proposals to determine-Did I get a good price?
·
Planning
for successful negotiations
Course Objective
Upon completion of this seminar, participants will know:
·
The
tendering process and the major steps that should be followed
·
Objects
of both owner and contractor
·
Pre-tender
Checklist
·
Mitigation
of risk by selection of contract type
·
Methods
of selection and qualifying contractors
·
The
criticality of the Statement of Work
·
Structure
and application of incentive arrangements
·
How
to evaluate the proposals using price analysis and/or cost analysis
·
Terms
& Conditions for economic price adjustments
·
Negotiation
Planning and Strategies
Who Should attend?
The program is designed for Engineering Project Managers,
Construction Managers, Tenders Managers, Contract Managers, Buyers, Purchasing
Managers, and financial personnel in organizations whose leadership wants
advanced skills sets in those involved in major contracting activities. The
program is a great way to develop those new to the function, or to prepare for
a major project, or useful as a refresher for veteran owner managers.
Course Outline
DAY 1
The Tendering Process
·
Major
Steps and flow of the Tendering Process
Objectives of the Parties
·
Owners
Objectives
·
Elements
of Reasonable Pricing
·
Contractor’s
Objectives
Contractor/Supplier Pricing Strategies
·
Cost
Based Models
·
Market
Based Strategies
Presolicitation Research
·
Reviewing
the Tender Request
·
Reviewing
the Price Estimate
·
Identify
Basic Planning Assumptions
Defining the Scope
·
Types
of Statement of Work
·
Work
Breakdown Structure
Tender Management Team
·
Team
Composition
·
Responsibilities
DAY 2
Types of Contracts & Risks
·
Contract
Types
·
Mitigating
risk by Contract Type
Methods of Payment
·
Progress
Payments
·
Issues
related to forward Pricing
Suppliers
1.
Qualifying
Suppliers
2.
Performance
Evaluation Criteria
3.
Obtaining
Financial Information
Bidding Process
·
Typical
Parts of the Tender
·
Model
Tender Check List
Model Agreement
·
Structuring
The Contract
·
Commercial
Terms & Conditions
·
Acceptance
Clause And Other Important Clauses
DAY 3
Price Analysis
·
Selecting
Prices for Comparison
·
Factors
that Affect Comparability
Economic Price Adjustments
·
Terms
& Conditions for Adjustments
·
Price
adjustments using price indexes
Structuring and Applying Incentive Arrangements
·
Cost
Incentive Pricing Arrangement
·
Award-fee
Pricing Arrangement
Quantitative Techniques for Contract Pricing
·
Cost-Volume-Profit
Analysis
DAY 4
Modifications and Clarifications
·
Basic
Policies
Key Cost Analysis Considerations
·
Reason
for Cost Analysis
·
Defining
Contract Cost
·
Cost
Estimating Methods
·
Requesting
Supplier’s Cost or Pricing Data
·
Analysis
of Supplier provided Cost Data
Cost Analysis - Direct
·
Identifying
direct materials and subcontract pricing
·
Analyzing
direct labor costs
·
Determining
and evaluating other direct costs
Cost Analysis – Indirect
·
Importance
of indirect cost in cost analysis
·
Identifying
indirect cost categories
·
Insuring
fair allocation of indirect costs
Profit Fee Analysis
·
Factors
to be considered
·
Examples
of weighted guidelines
DAY 5
Exchanges Prior to Negotiations
·
Determine
the need for Pre-negotiation Exchanges
·
Methods
for Conducting Exchange
·
Preparing
Participants for Face to Face Exchanges
Advanced Negotiation Planning and Strategies
·
Identifying
negotiation Issues and objectives
·
Assessing
bargaining strengths & weaknesses
·
Preparing
a negotiation plan
·
Bargaining
techniques
·
Important
Points for conducting the negations
Workshop Summary
·
On
the "Road to World Class” in Tenders Management
