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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contracts Administration: After the Award
Strategies For Contract Administrators to
Minimise Changes, Delays & Ensure Scope of Contract is Delivered as Agreed
Webinar
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Artin Vaqari Chief Executive Officer
Robi Bendorf CPSM, MCIPS, Lifetime CPM Senior Consultant
Purchasing & Procurement Center Inc.
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The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Robi Bendorf Over 30 Years Experience in Procurement &
Contracts. Lifetime CPM, CPSM – from Institute of Supply Management MCIPS – from Chartered Institute of Purchasing &
Supply Unique Experience As a Buyer & Contract
Administrator as well as Supplier/Contractor as Robi Served as Manager of Customer & Supplier Development for Westinghouse Trading Corp.
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
1. Questions
Write them down – We’ll answer what we can or reply later by email
2. Getting the Slides
Stay Until the end to get a Copy of this presentation
3. For those who want more on Contract Administration, we have something special at the end
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Do Contractor/Supplier Know What They Are Doing OR
Specifications Are a Total Mess OR
End Users Don’t Know What they are doing
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
What Is The Real Objective of Contract Administration?
The Causes of Contract Changes
Evaluating Price Changes
Why SOW is a Major Cause of Contract Changes?
3 Types of SOW & When To Use Each?
Monitoring Techniques to Expedite Work
Liquidated Damages or Penalty Clauses?
Why Inspection & Acceptance Is The Most Important Factor?
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The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Purchasing & Procurement Center Inc.
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
The objectives of contract administration are basically to assure:
• That the scope is being delivered as
agreed-- to the required level of
performance and quality.
• That all the conditions of the contract are
met by both parties.
• That all the objectives of the organization
for entering into an agreement with an
outside source are satisfied.
• The relationship between the two parties are open and constructive, so
as to avoid tensions and identify and resolve problems early.
The objectives can be summarized as : .
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Purchasing & Procurement Center Inc.
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Please identify the changes that have occurred in some of the contracts that you have been involved in.
What was the cause of the change?
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Purchasing & Procurement Center Inc.
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
The contract administrator should request a cost breakdown to be included with the proposal for any change.
The breakdown should include all elements of cost so that the proposal for price change can be evaluated as to the fairness and reasonableness of the proposal.
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Always ensure that the supplier deducts the price for scope of work not done as per original contract, when supplier
quotes new price for the change
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The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Purchasing & Procurement Center Inc.
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
A Statement of Work (SOW) is a statement outlining specific services a supplier is expected to perform, generally indicating the type, level, and quality of service, as well as the time schedule required..
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Most conflicts and problems in contract execution result from a poorly written SOW, so it is essential that those involved in the contract administration be able to analyze and understand the SOW.
Generally a Specification and SOW are not the same. A specification is usually a reference in the SOW that covers requirements and test procedures for parts, materials, equipment and or the services to be used with either associated specifications or specification sheets. .
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Purchasing & Procurement Center Inc.
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Although there are other types and variations of each, the basic types of SOW fall into three categories.
1. Design/detail SOWs tell the supplier how
to do the work. It may include precise
measurements, tolerances, materials,
quality control requirements, and other
buyer requirements that control the
processes of the supplier.
The buyer, to a large degree, requires the
contractor to follow the buyer's way of performing
the task or making the equipment.
This causes the risk of performance to be borne by
the buyer unless the supplier is negligent. .
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
The basic types of SOW: 2. Level-of-effort or Time and Material or Unit Rate
SOWs can be written for almost any type of service.
The real deliverable under this type of contract is an
hour of work and the material required to perform the
service, research, repair, development, etc..
These SOWs are usually very broad and describe the
general nature, scope or complexity of the services or
products to be procured over
a given period of time.
Extreme care must be exercised in
supervision of the work and the
reimbursement of material cost under
this type of SOW. .
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
The basic types of SOW:
3. Performance-based SOWs are generally the
preferred method of stating needs. A performance
based statement of work structures all aspects of an
acquisition around the purpose of the work to be
performed or equipment to be supplied and does not
dictate how the work is to be accomplished.
Performance based SOWs emphasize
performance that can be contractually
defined so that the results of the
contractor's effort can be measured
in terms of performance, technical
and quality achievement, schedule
progress, or cost performance. .
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Purchasing & Procurement Center Inc.
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Schedule Status Reporting
1. Supplier shall provide within 5 working days of the
signing of the Procurement Contract a detailed schedule
of all major tasks and events required to design,
purchase materials, manufacture, test and deliver the
scope by the required dates.
2. The supplier shall provide weekly a progress report of
the actual status adequate to allow Buyer to monitor
the progress against the original schedule and toward
the timely completion. Included in the report must be
the following:
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Schedule Status Reporting - Continued
2.1 Did the project achieve the milestones/ performance
due since the last report?
2.2 What milestones are due before the next report?
2.3 Has anything happened that will impact the final delivery
date?
2.4 Are there any new significant risks, and if so what is
being done to treat the risk.
3. The progress report will be provided in the following format
(e.g. form, MS Projects, etc.) and transmitted by digital file
via (hand, internet, phone line, mail, etc.)
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The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Purchasing & Procurement Center Inc.
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Status Checking: Determining current progress, promised delivery, shipping status.
The most accurate information comes by sending your own
personnel to the supplier’s location. It is best to use those
trained in project monitoring. Include surprise visits. If it is
not possible to visit consider the following when obtaining
status:
• Use Open ended questions that cannot be
answered without actually checking:
Good: At what stage is my contract?
Not Good: Is my contract on schedule?
Good: What time did the material ship?
What is the vessel and ocean bill number?
Not Good: Did my shipment go?
• Document name, time, and status.
• Be a fanatic about requiring up-to-date accurate
status from your suppliers. .
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The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Purchasing & Procurement Center Inc.
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Is the following a penalty clause or a liquidated damages clause?
Delivery of the Equipment at the time described above is critical to Buyer. Should the supplier fail to meet the above delivery date and Buyer does not contribute to the delay, Supplier agrees to pay the amount of 1% per week of the original contract price for every week that delivery is not made up to a maximum of 10 weeks.
- Penalty Clause
- Liquidated Damages Clause
- Don’t Know/Got No Idea
.
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The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Purchasing & Procurement Center Inc.
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
In many countries Penalty clauses are not enforceable.
◦ For a contract provision to be enforceable it must contain Legal subject matter.
If the court feels that the clause was intended to apply undue force to the other party to perform his part of the agreement then it will not be considered as legal subject matter.
◦ Damages for breach by either party may be liquidated in the agreement but only at an amount which is reasonable in light of the anticipated or actual harm caused by the breach,
the difficulties of proof of loss, and
the inconvenience or nonfeasibility of otherwise obtaining an adequate remedy.
◦ A term fixing unreasonably large liquidated damages may be void as a penalty.
.
.
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The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Inspection & Acceptance phase is one of the most important since the word “acceptance” is very significant under most of contract laws. ◦ Before acceptance occurs, the buyer has few obligations
and some very good remedies for any nonconforming items it receives, including the right not to pay for those items and even possibly canceling the contract.
◦ After the point of acceptance the buyer has abandoned his right to reject the goods and the buyer’s rights become more limited and its obligations increase.
◦ It is therefore very important to be as detailed and specific as possible regarding how the deliverables will be inspected and accepted.
.
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
How to take your contract administration to the next level and achieve successful
completion with minimal changes
and delays and within time and
Budget. Be on Your Way to
Becoming a Pro in Contract Administration
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
An exclusive invitation to Best Selling Training Program with Robi Bendorf
CONTRACT ADMINISTRATION:
From Start To Finish
A Chance to See Robi Live & Meet Face to Face
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The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Administration: After the Award
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
“At the beginning I thought that it is worth coming to this course, but now after attending I am damn sure that it is worth
every penny.” Head of Contracts,
Oman Airports Management
“After attending … I feel excited and can’t wait
to go to office and start work.” Contract Management Specialist
Petronas, Malaysia
Is This The Best Program?
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
What if you used these best practices, how would that affect your day to day job - you, your end users & your suppliers and contractors?
What if all your suppliers and contractors did what they promised to do how would your day be like?
How these proven strategies on contract administrations would affect your career and possibly your pay?
How About You?
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Comprehensive Manual:
What Do You Get?
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Post Conference Award Meeting with the Supplier:
Checklist & A Detailed Sample Record of such Conference
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Contract Performance Evaluation
Sample Report
Performance Criteria Evaluation
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Managing Contract Risks – 22 Categories of Risk
Using 4 Response Types to Any Risk Category
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Expediting: - Making Things Happen Minimizing Contract
Changes: Detailed Example of a 21 steps approach to use for contract changes
Detailed Cost Estimate
Summary Sheet Sample Request To
Suppliers For Submitting Cost Proposals When Cost Data Are Required
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
Payment Terms:
The 3 types of Progressive Payments – Which One to Use
How Much of Total Cost Should You Pay the Supplier before contract is fully delivered?
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
This Program Is Not Going to Solve ALL Your Problems
BUT
We Promise that You Will Do Much Better in Your Contract Administration
- Less changes,
- Less Delays,
- Less Complications with Suppliers and End Users
- Professionally Deal with All Stakeholders, bosses, peers, end users, supplier.
Click Below to Register http://ppc-inc.com/contract-admin-webinar-special/
Is This For You?
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Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
$ 400 Off The Regular Investment
Available for the next 72 hours
Special Deal for Webinar Attendees:
http://ppc-inc.com/contract-admin-webinar-special/
Contract Administration: After the Award
The Most Sought After Experts in Procurement & Contracts Learning & Competency Building Programs
One of the true tests of leadership is the ability to recognize a problem before it
becomes an emergency.
~ Arnold Glasow