Webina ebinar Contra ract Administ istra ratio ion: n: After the Award Contracts racts Administratio istration: n: Afte ter r the Award Strate ategies gies For Contract ract Adminis inistra rato tors rs to Minim nimis ise Changes ges, Delays ys & Ensure ure Scope of Co Contrac ract t is Delivered ivered as Agreed ed The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs Contra ract ct Administ istra ratio ion: n: After the Award Robi i Bendorf rf Arti tin n Vaqari ri CPSM, MCIPS, Chief Executive Officer Lifet etim ime e CPM Senior Consultant Purchasing & Procuremen ment t Center ter Inc. The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs 1
Contra ract Administ istra ratio ion: n: After the Award Robi i Bendor orf Over 30 Years Experience in Procurement & Contracts. Lifetime CPM, CPSM – from Institute of Supply Management MCIPS – from Chartered Institute of Purchasing & Supply Unique Experience As a Buyer & Contract Administrator as well as Supplier/Contractor as Robi Served as Manager of Customer & Supplier Development for Westinghouse Trading Corp. The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs Contra ract ct Administ istra ratio ion: n: After the Award 1. Questions Write them down – We’ll answer what we can or reply later by email 2. Getting the Slides Stay Until the end to get a Copy of this presentation 3. For those who want more on Contract Administration, we have something special at the end The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs 2
Contra ract Administ istra ratio ion: n: After the Award The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs Contra ract ct Administ istra ratio ion: n: After the Award The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs 3
Contra ract Administ istra ratio ion: n: After the Award Do Contract ctor/ r/Suppl Supplie ier r Know What They Are Doing OR Specifica cificatio ions ns Are a Total Mess OR End Users Don’t Know What they are doing The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs Contra ract ct Administ istra ratio ion: n: After the Award The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs 4
Contra ract Administ istra ratio ion: n: After the Award The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs Contra ract ct Administ istra ratio ion: n: After the Award What t Is The Real Objecti ective e of Contr tract ct Admin minis istra rati tion on? The e Causes ses of Cont ntra ract ct Chang nges es Evalu luati ting g Price e Changes nges Why y SOW is a Major or Caus use e of Cont ntra ract ct Changes? ges? 3 Types es of SOW & When n To Use Each? h? Moni nitori oring g Techn hniq iques ues to Expedi edite e Work Liqui uidated ted Damages ges or Penalt lty y Clause uses? s? Why y Insp specti ection on & Acceptance ce Is The Most st Import ortant nt Facto tor? r? The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs 5
Contra ract Administ istra ratio ion: n: After the Award Purchasing & Procuremen ment t Center ter Inc. The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs Contra ract ct Administ istra ratio ion: n: After the Award The objectives of contract administration are basically to assure: • That the scope is being delivered as agreed-- to the required level of performance and quality. • That all the conditions of the contract are met by both parties. • That all the objectives of the organization for entering into an agreement with an outside source are satisfied. • The relationship between the two parties are open and constructive, so as to avoid tensions and identify and resolve problems early. The objectives can be summarized as : . The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs 6
Contra ract Administ istra ratio ion: n: After the Award The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs Contra ract ct Administ istra ratio ion: n: After the Award Purchasing & Procuremen ment t Center ter Inc. The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs 7
Contra ract Administ istra ratio ion: n: After the Award Please identify the changes that have occurred in some of the contracts that you have been involved in. What was the cause of the change? e? The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs Contra ract ct Administ istra ratio ion: n: After the Award Purchasing & Procuremen ment t Center ter Inc. The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs 8
Contra ract Administ istra ratio ion: n: After the Award The contract administrator should request a cost breakdown to be included with the proposal for any change. The breakdown should include all elements of cost so that the proposal for price change can be evaluated as to the fairness and reasonableness of the proposal. The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs Contra ract ct Administ istra ratio ion: n: After the Award Alway ays ensure re that the supplier r deduct cts the price for scope of work k not done as per original nal contract, act, when supplier r quotes new price for the change ge The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs 9
Contra ract Administ istra ratio ion: n: After the Award Purchasing & Procuremen ment t Center ter Inc. The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs Contra ract ct Administ istra ratio ion: n: After the Award A Statement of Work (SOW) is a statement outlining specific services a supplier is expected to perform, generally indicating the type, level, and quality of service, as well as the time schedule required. . The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs 10
Contra ract Administ istra ratio ion: n: After the Award Most conflicts and problems in contract execution result from a poorly written SOW, so it is essential that those involved in the contract administration be able to analyze and understand the SOW . Generally a Specification and SOW are not the same. A specification is usually a reference in the SOW that covers requirements and test procedures for parts, materials, equipment and or the services to be used with either associated specifications or specification sheets. . The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs Contra ract ct Administ istra ratio ion: n: After the Award Purchasing & Procuremen ment t Center ter Inc. The Most Soug ught ht After Experts in Procur urement nt & Contracts Learning ng & Competenc ncy Building Programs 11
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