Managing & Negotiating With Consultants & Contractors

Managing & Negotiating With Consultants & Contractors


Date & Location: (8-12/Jan) Kuala Lumpur – ( 22-26/Oct) Jakarta

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Course Overview


This training course is designed to provide knowledge in:

  • Sourcing & Selecting Consultants & Contractors
  • Issues to be considered before the Tender Invitation and Key contractual clauses
  • Raising the Invitation and Managing the Tender Process
  • Contract type and language for best outcome with Consultants and Contractors
  • Developing “Statements of Work” and Service Level Agreements as contract documents
  • Monitoring, measuring Consultant and Contractor performance and Negotiations with Consultants and Firms Supplying Contractors

Program Objectives:

  • How to evaluate bids and proposals
  • What key clauses to include in contract documents
  • Structure and application of incentive arrangements
  • Best Terms & Conditions to protect your company
  • Negotiation Planning and Strategy
  • Monitoring and measuring Consultants and Contractors performance


Who Should Attend?

This course will mainly benefit to purchasing managers, senior buyers, project managers, civil engineers, construction managers, contractors, sub-contractors, site engineers, senior management, and government agencies, architects, construction professionals, and anyone responsible for purchasing at a senior level who seeks to enhance their skills further.


Program Outline:


Establishing Contractual Relationships with Consultants and Contractors

  • Introductions
  • Purpose of the course and objectives

Defining the Difference between Consultants and Contractors

  • Role of Consultants & Responsibilities to Buyer

Defining the Relationship with Consultants and Contractors

  • Length of contract with consultant or contractor
  • Type of work to be accomplished
  • Reason for contracting out the work

Consultants & Contractor Firms Pricing Strategies

  • Top Down Strategy – Market based
  • Bottom Up Strategy – Cost recovery based

Sourcing & Qualifying Potential Consultants and Contracting Firms

  • Basic planning assumptions
  • Proactive sourcing & project scheduling
  • Use of the Internet
  • References from other known past users

Defining the Scope

  • Statements of Work (SOWs) – work packages
  • Service Level Agreements (SLAs) – Key Performance Indicators (KPIs)
  • Importance to overall success
  • Clear and Concise to both Buyer and Consultant/Contractor
  • Establishing Milestones for future progress reporting


The Bidding and Bid Evaluation Processes

Invitations to Tender (ITT)/Requests for Proposals (RFP)/Requests for Quotation (RFQ)

  • What type of request is best for a situation
  • Why use competition?

Proposal/Bid Evaluation

  • Bid evaluation schedule
  • Compliance matrix
  • Terms & Conditions Analysis
  • Factors that Affect Comparability

Contract Pricing & Price Adjustments

  • Fixed price or firm price?
  • Costs Plus (Time & Materials); Incentive based pricing
  • Contract Price Adjustment Criteria & Clauses
  • Price Adjustments using Price Indices
  • Price vs. Quality Factors – Value for Money

Cost Analysis of Proposals/Bids

  • Reasons for Cost Analysis
  • Requesting Additional Cost Information from Bidders
  • Cost Estimating Methods


Negotiations and Contract Development

Negotiations Strategies and Techniques

  • Supplier/Buyer Positioning – pre-cursor for the negotiation strategy
  • With Consultants
  • With Firms supplying Contractors
  • How to Negotiate with Sole Source
  • Incentive Arrangements – Structure and Application

Model Contract Formats

  • Formats for Consultants
  • Formats for Contractor Firms
  • Important Contract Articles

Financial Considerations

  • Specifics of items included in base price
  • Definition of expenses not included in base price
  • Hourly/Daily/Weekly/Project rates

Progress Reporting and Payment

  • Payment based on Milestones Achieved not Stage Payments (elapsed time)
  • Payment terms – When, Where, How, Currency Net payment terms and currency

Termination of Contract

  • Reasons for termination – Both Parties
  • Processes of terminating


Confidentiality, IPR, Insurance and Warranties

Confidential Information & Non-Disclosure

  • Need for Pre-contract arrangements
  • Access to confidential or proprietary information
  • Agreement not to use or divulge
  • How long in force after contract is complete

Insurance Coverage

  • What is insurable?
  • How much insurance required?
  • Nature of proof of insurance and possible impact
  • What type of coverage
  • Who bears the cost – Consultant/Contractor Firm or Buyer

Intellectual Property Rights

  • Definition of IPR – Patents, Design Rights, Trade Marks & Copyright
  • Background & Foreground Rights
  • Ownership rights and assignment

Warranties and Representations

  • No Conflict with Consultant/Contractor other work
  • Consultant/Contractor agrees to perform in professional manner

Restrictive Covenants

  • Consultant/Contractor will not provide like services to Buyer’s competitors
  • Will not publish without prior written consent of Buyer
  • Will not use in advertising, sales promotion or publicity without prior consent


Contract Award and Performance Evaluation

Awarding of Contract

  • Contract formation & contract effectiveness conditions
  • Notification of successful bidder
  • Notification of unsuccessful bidders
  • Official signatures and start dates

Monitoring and Measuring Consultant Performance

  • Performance based on Statement of Work
  • Milestones and progress against them
  • Project Management Processes

Monitoring and Measuring Contractor Performance

  • Performance based on Statement of Work
  • Individual project performance
  • Work expectations

Contract Administration

  • Ensuring performance of Consultant/Contractor as Invoiced
  • Resolving issues/problems from either party
  • Preparation for Renewing Agreement
  • Preparation for Terminating Agreement

Final Learning Review and Analysis

  • Delegate feedback forms
  • Analysis against objectives