Effective Purchasing and Contract Negotiation Strategies

Too often the wording used in contracts is not properly understood by those who are making decisions relating to those contracts and non-specialists are reluctant to get involved in the process of drafting and amending the documents which are critical to their company’s success. There may also be problems in assessing amendments proposed by the other party and determining whether these are reasonable or are eroding your company’s position. Your ability to be effective and to keep your company out of costly and time-consuming legal disputes depends on your knowledge or relevant laws but also on the ability to read and understand contracts and to draft or re-write such contracts effectively. By the end of the workshop, participants will be able to:

• Provide an understanding of contract structures and how and why contracts are drafted in particular ways
• Enhance understanding of the legal principles behind Purchasing and Contract Management
• Discuss the difference between similar clauses in different international standards and negotiating your way to success and better results for the organization

Content

Purchasing Management

• Introduction to Purchasing
• Procurement Cycle
• Functions and Contributions of Purchasing
• Purchasing System

How and Why Contracts are Drafted

• Why we use Contracts
• Formation of a Contract
• Terms and Conditions of Contract
• Forms of Agreement
• The Basic Structure of a Contract

Contract Clauses

• Obligation to Deliver/Perform
• Rework/Re-Performance
• Compliance with Law/Change of Law
• Indemnities and Insurance
• Liability in Negligence

Negotiation and Resolution of Disputes

• Dispute Resolution Clauses
• Negotiation, Compromise and Settlement
• Litigation and Arbitration
• Enforcement of Awards

Contract Documents

• Letters of Intent or Award
• Bank and Insurance Bonds
• Finance Arrangement
• Letters of Comfort or Awareness Collateral

For Whom: Contract Administrators, Purchasing Officers/Managers, Buyers, Supply Managers, Project Engineers/Managers, Claims Managers, Auditors, Negotiation Managers/Staff and others who perform related functions