Contracts Strategy and Management

Course Duration (4 days)
Course Objectives
Developing your own effective procurement and Supply Chain Management (SCM) strategy can make valuable quantifiable contributions to your company’s performance. This practical course shows you how to adopt a “best-practice” model, and outlines the latest thinking in upstream petroleum industry procurement.
What you will learn
How to develop and implement a highly effective procurement strategy and plan for your organisation to reduce the overall cost of purchasing
How to manage your supply chain in order to deliver maximum value at minimum cost
How to develop and implement a best-practice process for the management of contracts and the supply chain
How to adopt innovative ways to select contractors and prepare tender documents
How to choose the type of contract and compensation terms that best achieves the contract’s objectives
How to prepare tender evaluation criteria and evaluate a tender submission
How to manage contract risk
Training method
This workshop makes extensive use of oil industry case studies, examples and exercises, with delegates working in syndicates to analyse problems and recommend solutions.
Who Should Attend?
This course is aimed at personnel at all levels and in all disciplines who have responsibility for and involvement in, the entire procurement process. This includes line operational managers and specialists (the “end users”), as well as contracts managers and contracts specialists.
Course Content Summary
What is a contract?
• the contract as a legal instrument
• the contract as an investment tool
What is the supply chain and how do we manage it?
• illustration of supply chain management (SCM)
• benefits of defining SCM
• SCM analysis for opportunities to save money
Developing a best-practice procurement process
• a suggested process for managing contracts from beginning to end
• the role of end-users and the contracts specialist
What makes the petroleum industry different?
• the role of government, national oil companies (NOC’s) and co-venturers
What is a contracts strategy and how do we develop one?
• oil industry case studies and examples
• the essential ingredients of a contracts strategy
• the process of developing a contracts strategy
The role of contracts policy and procedures
• the vital relationship between contracts strategy, policy and procedure
• oil industry examples of contracts policy and procedure

Alternative contracts strategies
• oil industry examples and case studies
The role of contract risk assessment
• the importance of contract risk assessment in strategy and contractor selection
• how to carry out a contract risk assessment
Alternative tendering strategies
• functional versus technical specifications
• oil industry examples
Different types of contracts
• strengths and weaknesses of alternative contract types
• how to choose an appropriate contract compensation method
How to prepare contractor selection criteria
• oil industry examples
• traditional versus non-traditional selection criteria
How to evaluate tender submissions
• how to ensure best-value selection
• how to avoid common mistakes
Understanding the “small print”
• getting to grips with contractual language and terms and conditions
How to manage the contract after it has been awarded
• the role of the “kick-off” meeting
• preventing and resolving disputes
• managing cost and performance
• how to give contractor feedback