Advanced Contracts & Purchasing Management

Sourcing contracts can consist of anything from a brief document with a price list attached, to hundreds of pages of legal documentation, terms, schedules, and flow charts. This program explores key concepts forming the basis of strategic procurement and moves though leading edge issues that confront the purchasing organization today. Initiating and managing contracts can be a complex process that requires a thorough understanding of specific planning and procurement activities. Successful sourcing relationships are based on careful and detailed preparation before the contract is signed. Both parties need a clear understanding of the type of relationship desired. Therefore, contract management is a systematic process in the procurement of services and products that involves specific phases and associated activities, including: planning and purchasing, award and implementation.Choosing the right Contract Strategy is the primary factor in determining contractor performance. It defines the way work will be allocated among contractors, the type of contractors to use, form of contracts (e.g.., lump sum or reimbursable cost), the allocation of risks, and how benefits or incentives will be used. Contract strategies are unique and must reflect cost and savings objectives, the level of scope definition, prevailing market conditions, technology involved, people to be managed, location, specialized skills and services required, and the allocation of responsibilities between owner/proprietor and contractor.