Managing & Negotiating With Consultants & Contractors

Course Code: PJ09

►Course Objective


  • 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


►Target Audience


  • managers
  • senior buyers
  • project managers, civil engineers
  • construction managers
  • contractors, sub-contractors
  • site engineers, senior management
  • government agencies
  • Purchasing and supply chain managersProject managers


►Course 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

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Date & Location

Date : 21 April 2019

Duration : 5 days

Place : Kuala Lumpur

Join This Course Now

Date : 20 October 2019

Duration : 5 days

Place : London

Join This Course Now

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