Course Description
This course provides practical, in-depth guidance on carrying out the vital responsibilities of contract administration and handling the challenges and problems that 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.
The course introduces and clarifies 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
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
Completion criteria and acceptance
Resolve disputes quickly and reduce costs
Manage contracts to increase profitability.
Agenda
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
Preperformance 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 payment
+ 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