Contracts Management Skills

28-08-2022 - 01-09-2022 3300 Abu Dhabi


Course Introduction:


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



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.



Course Outline:



·         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



Course Fees:


This rate includes participant’s manual, Hand-Outs, buffet lunch, coffee/tea on arrival, morning & afternoon of each day.


Course Timings:


Daily Course Timings:

    08:00 - 08:20       Morning Coffee / Tea

    08:20 - 10:00       First Session

    10:00 - 10:20       Coffee / Tea / Snacks

    10:20 - 12:20       Second Session

    12:20 - 13:30       Lunch Break & Prayer Break

    13:30 - 15:00       Last Session

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