Contract Negotiation: Skills and Techniques

INTRODUCTION In many occasions, project managers or the end users usually care less on how the contract will be structured and written. Project managers or the end users tend to forward the contract management process to the procurement, legal & contract department since they assume that such process relates to procurement and/or legal/contractual matters. However, the contract management process is not only a simple contract writing process but it involves a bigger picture of the process. The project managers and/or the end users’ participation in that process determines whether the entire contract management process is a success. As the executor of the project & user of certain services, project managers and/or end users are highly recommended to participate in the contract management process starting from the beginning of the contract development & bidding process up to the negotiation process, contract execution and close out. This way all requirements related to the project will be well covered in the contract and there will be no flaws that may create disputes at present or in the future. One thing to remember is that project managers & end users are the persons responsible to run and manage the contract for the entire period of the project. Therefore project leaders & end users are recommended to understand about the contract and its financial & legal implications in addition to the scope of work and financing management. COURSE OUTLINE Day 1 Supply Chain Management What is Supply Chain Management Who are involved in the Supply Chain Management Relationship between Supply Chain Management and Contract Management Prevailing Regulation Procurement Process - Stage 1 Planning and Budgeting The existence of Bid Committee Determining the Procurement Process : Direct Appointment, Direct Selection, Tender/Bidding Pre-Qualification Process: Selection of Vendors/ Bidders Procurement Process - Stage 2 Preparing the bid package Elucidation Meetings Evaluation of Bids Letters of Intent Award Notification Major issues in Letter of Intents Letter of Intent vs Letter of Award Is Letter of Intent binding ? Tender Compliant/Protests Causes for tender compliant/protests Legal/contractual implication Day 2 Contract Management What is Contract Management Difference between agreement and contract What is a contract Types of Contract Unilateral contracts Bilateral contracts Multilateral contracts Pre-Contract process Offer Contractual Negotiation Acceptance Agreement Provisions of a Contract Subjects of a contract Contract Term : commencement and expiration date Termination provisions Technical provisions: People and Equipment Commercial provisions : terms of payment Liability provisions Warranty provisions Force Majeure Liquidated Damages Penalty clause Amendment/Addendum /Variation of Contract Assignment provisions Governing Law Dispute Resolution : amicable, mediation, arbitration, or court Legal Advices Who should you ask for Legal Advice Internal Legal Advice External legal advice Contract Execution Time consistency Scope of Work compliance & monitoring Invoicing procedure Cost Control Management of Variation/ Amendment/ Addendum Contract Expiry or Termination Control of the Contract Term Performance based evaluation Cost effective evaluation Contract reference for upcoming future similar project Contract close-out Day 3 Negotiation Skills and Techniques Types of Negotiation: Positional Negotiation and Interest-Based Negotiation Basic Rules of Negotiations How to represent your company in a negotiation process Determining your objectives in a negotiation Attitude towards negotiation Persuasive attitude Bargaining Position Technical Negotiation Commercial Negotiation Legal/Contractual Negotiation Effective negotiation process: Who should attend, what are being negotiated and the aim of negotiation End result of Negotiation: Win-Win Solution, Agreement, Deadlock or Dispute Requirement on management decision Bonds, Penalty & Liquidated Damages Rules of bonds requirement Penalty implementation & negotiation Liquidated damage philosophy Basic International Contract Types Fixed Price Cost Plus Fixed Fee Outsourcing Time and Material Incentive or Award Economic Price Adjustment Engineering Procurement & contraction Class Activities: Negotiation is Fun Participants are required to participant in class room discussions by reviewing a draft agreement and role play on negotiation process. WHO SHOULD ATTEND The program is designed for Engineering, Operational, Maintenance, Purchasing, and Contracts personnel at all levels who are involved in the planning, development, approval, and management or contracts that cover the acquisition of materials, equipment, software, and services and who are in organizations whose leadership want high levels of competency in those involved in these activities. Contract Negotiation: Skills and Techniques

Instructor Ir. Joko Margono, MBA Schedule October 28-30, 2009 3 days Venue Grand Serela Hotel Bandung Tuition Fee Rp. 5.450.000,-   per participant, excluding accommodation & tax. Registration Send by email -or- fax to: PT. FOCUS TRACO INDONESIA Wisma Pakuan, Jl. Pakuan 12 BOGOR – 16143 (021) 7009-9943   (0251) 2169-150 (0251) 7534-984 training@focustraco.com