1. Contract Manager – Roles .......
Adjudicator
Arbitrator
Juggler
Accountant
Diplomat
Contract
Expert

2. The Essentials of Contract Management
We do not “manage” the inevitable! This is about directing and prioritizing effort systematically to achieve organizational goals
Management
Corporate strategy
SRM
Commercial strategy
Contract Administration
Contract strategy
Terms & Conditions
Payment Management

3. The Essentials of Contract Management4
Supply upside opportunities versus downside risks
These must be understood and will “inform” corporate and commercial strategy
Task specification 5
“Market Making”
(supply market)
Market testing
Supplier goal-setting
Supply economics
Risk appreciation
Contract negotiation

4. CONTRACT MANAGEMENT LIFECYCLE1
Project Development 6
Mobilise 8
“Delivery” Management 2
Contract Development 7
Implement C.M.P 9
Commissioning and sign-off 3
Contract Management Plan
Technical Workstream 7a 4
Negotiate Contract
Financial Workstream 7b 5
Execute Contract
Stakeholder Management 7c

5. Stakeholder Engagement
Stakeholder Buy-in .....
Review of commercial strategy
Outline business case
Re-confirm roles & responsibilities +
Project governance
Audit trail
Negotiation phase
Final business case
Delegated authorities
Draft & finalize contract
Sign-off
Stakeholder agreement and commitment

6. Stakeholder Management
Who is responsible for delivering the contract?
Legal
The Board
Sales
Executive Director
Procurement
Budget Holder
Head of Business Unit
Manufacturing
Project Manager
Quality
Contract Manager
End - User

7. BCMR – Basic Contract Materiality Assessment
CREF
BCMR
Mechanism to
Assess materiality
of a contract
Risk should lie where risk
is best managed
Client organisation should
formally identify projects
where a formal risk review
will be undertaken
Simple Excel format
Organisation
must
understand
and
articulate
its own
risk appetite
5 inter-acting
‘dimensions’
Risk register used
Contract ‘Materiality’
review is undertaken
Risk should be considered
Within regulatory framework
SD5A

8. Commercial Project Strategy – major considerations
Buying or Selling ?
IPRs
Passing of Title
Payment
Risk distribution
Turnkey / Management Contracting
Pricing
Law / Arbitration
Project Strategy
Buying
State of the Art ?
R&D ?
Outsourcing core functions
Outsourcing non-core functions
Supply
Maintenance
Consultancy / Professional Services
Selling
State of the Art ?
Client Account attractiveness
Routine or Special ?
Distributors or Direct ?

9. Contract Management - Foundations
Privity and Recitals
Outputs / Deliverables
IPR’s
Liabilities and indeminities
Ownership – passing of title
Money
Programme / Time
Contract Management Plan
Contract Pricing Strategy
Commercial / Project Strategy

10. Contract Management - Foundations
Who in your organisation is
Responsible for considering these things?

11. Performance Shortfall
Why contracts need managing
What are the areas where problems are likely to occur?
Cost Increase
Performance Shortfall
Time delay
Disaster recovery / Force Majeure
IPR infringement