Contract Management Sample - CorporateTrainingMaterials.com

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Contract Management Sample

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TABLE OF CONTENTS

Preface .................................................................................................................................................... 3

What is Courseware?........................................................................................................................... 3

How Do I Customize My Course?.......................................................................................................... 3

Materials Required .............................................................................................................................. 5

Maximizing Your Training Power ......................................................................................................... 5

Icebreakers.............................................................................................................................................. 7

Icebreaker: Related Topic .................................................................................................................... 8

Instructor Guide Sample .......................................................................................................................... 9

Module Two: Defining Contract Management ....................................................................................... 10

What is Contract Management? ........................................................................................................ 10

Contract Types .................................................................................................................................. 11

Contract Elements ............................................................................................................................. 12

Risks of Poor Contract Management.................................................................................................. 13

Practical Illustration .......................................................................................................................... 14

Module Two: Review Questions ......................................................................................................... 16

Appendix ............................................................................................................................................... 19

Sample Worksheet 1.......................................................................................................................... 20

Quick Reference Sheets ......................................................................................................................... 21

Certificate of Completion ...................................................................................................................... 24

PowerPoint Sample ............................................................................................................................... 26

Full Table of Contents ............................................................................................................................ 31



Preface

What is Courseware?

Welcome to Corporate Training Materials, a completely new training

experience!

Our courseware packages offer you top-quality training materials that

are customizable, user-friendly, educational, and fun. We provide your

materials, materials for the student, PowerPoint slides, and a take-

home reference sheet for the student. You simply need to prepare and

train!

Best of all, our courseware packages are created in Microsoft Office and can be opened using any

version of Word and PowerPoint. (Most other word processing and presentation programs support

these formats, too.) This means that you can customize the content, add your logo, change the color

scheme, and easily print and e-mail training materials.

How Do I Customize My Course?

Customizing your course is easy. To edit text, just click and type as you would with any document. This is

particularly convenient if you want to add customized statistics for your region, special examples for

your participants’ industry, or additional information. You can, of course, also use all of your word

processor’s other features, including text formatting and editing tools (such as cutting and pasting).

To remove modules, simply select the text and press Delete on your keyboard. Then, navigate to the

Table of Contents, right-click, and click Update Field. You may see a dialog box; if so, click “Update entire

table” and press OK.

(You will also want to perform this step if you add modules or move them around.)

If you want to change the way text looks, you can format any piece of text any way you want. However,

to make it easy, we have used styles so that you can update all the text at once.



If you are using Word 97 to 2003, start by clicking the Format menu followed by Styles and Formatting.

In Word 2007 and 2010 under the Home tab, right-click on your chosen style and click Modify. That will

then produce the Modify Style options window where you can set your preferred style options.

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Now, we can change our formatting and it will apply to all the headings in the document.

For more information on making Word work for you, please refer to Word 2007 or 2010 Essentials by

Corporate Training Materials.



Materials Required

All of our courses use flip chart paper and markers extensively. (If you prefer, you can use a whiteboard

or chalkboard instead.)

We recommend that each participant have a copy of the Training Manual, and that you review each

module before training to ensure you have any special materials required. Worksheets are included

within the Appendix of the Instructor Guide and the participant’s Training Manual, and can be

reproduced and used where indicated. If you would like to save paper, these worksheets are easily

transferrable to a flip chart paper format, instead of having individual worksheets.

We recommend these additional materials for all workshops:

• Laptop with projector, for PowerPoint slides

• Quick Reference Sheets for students to take home

• Timer or watch (separate from your laptop)

• Masking tape

• Blank paper

Maximizing Your Training Power

We have just one more thing for you before you get started. Our company is built for trainers, by

trainers, so we thought we would share some of our tips with you, to help you create an engaging,

unforgettable experience for your participants.

• Make it customized. By tailoring each course to your participants, you will find that your results

will increase a thousand-fold.

o Use examples, case studies, and stories that are relevant to the group.

o Identify whether your participants are strangers or whether they work together. Tailor

your approach appropriately.

o Different people learn in different ways, so use different types of activities to balance it

all out. (For example, some people learn by reading, while others learn by talking about

it, while still others need a hands-on approach. For more information, we suggest

Experiential Learning by David Kolb.)

• Make it fun and interactive. Most people do not enjoy sitting and listening to someone else talk

for hours at a time. Make use of the tips in this book and your own experience to keep your



participants engaged. Mix up the activities to include individual work, small group work, large

group discussions, and mini-lectures.

• Make it relevant. Participants are much more receptive to learning if they understand why they

are learning it and how they can apply it in their daily lives. Most importantly, they want to

know how it will benefit them and make their lives easier. Take every opportunity to tie what

you are teaching back to real life.

• Keep an open mind. Many trainers find that they learn something each time they teach a

workshop. If you go into a training session with that attitude, you will find that there can be an

amazing two-way flow of information between the trainer and trainees. Enjoy it, learn from it,

and make the most of it in your workshops.

And now, time for the training!



Icebreakers

Each course is provided with a wide range of interactive Icebreakers. The trainer can utilize an

Icebreaker to help facilitate the beginning of the course, as it helps “break the ice” with the

participants. If the participants are new to each other, an icebreaker is a great way to introduce

everyone to each other. If the participants all know each other it can still help loosen up the

room and begin the training session on a positive note. Below you will see one of the

icebreakers that can be utilized from the Icebreakers folder.



Icebreaker: Related Topic

Include a short activity here that is related to the topic of the workshop. You can use the one below if

you like.

1. Ask the participants at each table answer the following:

a. Why are they here?

b. What is their level of experience with contract management?

c. What they hope to get from this class?

d. What was their most memorable vacation or trip?

2. Have someone be designated a scribe and have them jot down the answers to question C above.

3. On a separate piece of paper, have the scribe write down the most interesting or exotic vacation

or trip from only one table member.

4. Have the scribe hand the note with the answers to question C to you.

5. Have the scribe stand and introduce the table to the class.

6. Then have the scribe share the most interesting vacation or trip from their group.

7. Have the class guess the person that had the most interesting or exotic trip or vacation.

8. Go around to each table until all have given you their answers to question C and shared their

most interesting trip or vacation.

9. Debrief by sharing all the answers to question C with the class.

10. Thank participants for sharing.



Instructor Guide Sample

On the following pages is a sample module from our Instructor Guide. It provides the instructor

with a copy of the material and a Lesson Plans box.

The key benefit for the trainer is the Lesson Plan box. It provides a standardized set of tools to

assist the instructor train that particular lesson. The Lesson Plan box gives an estimated time to

complete the lesson, any materials that are needed for the lesson, recommended activities, and

additional points to assist in delivering the lessons such as Stories to Share and Delivery Tips.



Module Two: Defining Contract Management

Every business relationship relies on contracts. Contracts are made

with vendors, employees, customers, partnerships, etc. These

agreements must be managed carefully, which is where contract

management comes into the picture. In order to effectively

implement contract management, however, it is necessary to

understand what it entails.

What is Contract Management?

Contract management is not just contract administration. Rather than simply

drawing up the contracts, the manager works to ensure that the entire process runs

smoothly. The contract manager is involved in, not just the planning and

development, but also the execution of the contract and beyond to the point of

renewal. Typical contract management activities include:

• Contract creation

• Negotiation

• Assessment

• Relationship management

• Contract amendment

• Audits

• Renewal

Over the course of this instruction, you will develop a better understanding of these roles.

Thoroughly read all your contracts. I mean

thoroughly.

Bret Michaels



Estimated Time 7 minutes

Topic Objective Review the definition of contract management.

Topic Summary What is Contract Management?

Discuss the different aspects of contract management.

Materials Required Flipchart/board, marker

Planning Checklist None

Recommended Activity

Discuss the characteristics of contract management. Consider the different

activities that apply to contract management. Write some of their answers

on the board/flipchart.

Stories to Share Share any personal, relevant stories.

Delivery Tips Encourage everyone to participate.

Review Questions What is not contract management?

Contract Types

All contracts are legal documents that establish the right and responsibilities of the

parties involved. Contracts can be created for almost any situation, and will ideally

involve legal. There are four basic contract types, and they are chosen based on the

factors and data available. While the list is not exhaustive, it is a good starting point.

These common contracts are:

• Fixed Price Contracts: The price of the item or service is usually fixed and will not change, which

benefits the buyer. Variations of this contract include firm fixed price, fixed price with

adjustment, fixed price with incentive, fixed price with downward price protection, and fixed

price with redetermination.

• Cost Reimbursement Contracts: These contracts benefit the seller. The buyer agrees to pay a

price, fee, or partial fee. Common types of these contracts include cost-sharing and cost without

fee.

• Letter Contracts: These contracts allow the suppliers or vendors to take action before the

details of the agreement are finalized. The buyer is at risk if liability limits are not clear.



• Partially Defined Contracts: Created when one or more aspects, such as goods, services, and

deliveries, are not known ahead of time. These include value contracts, quantity contracts, and

time and material contracts.


Topic Objective Review the types of contracts.

Topic Summary Contract Types

Discuss the different characteristics of independent agent marketing.


Planning Checklist Bring in examples of each type of contract, and pass them out to the class.

Recommended Activity Consider the pros and cons of each type of contract, and list them on the

flipchart/board.



Review Questions What are the four common contracts?

Contract Elements

Every contract is unique, but there are three basic elements most contracts

need to be considered legal and binding. These elements are the offer,

acceptance, and consideration.

• Offer: The offer is the promise of goods or services in exchange for agreed upon rates or

exchanges. An offer is different than a negotiation because an offer is binding once accepted.

• Acceptance: The offer is accepted based on words or actions required by the individual making

the offer. A counter offer occurs when the offer is not accepted, but new conditions are

proposed.

• Consideration: This happens when the exchange is made based on the accepted offer. Payment

is an example of consideration.

These definitions are not all-encompassing, and there are exceptions to every rule. The legal

department should always be consulted when creating a new contract. Still, these elements are useful

starting points for all contracts.




Topic Objective Review the basic contract elements.

Topic Summary Contract Elements

Discuss the basic contract elements.

Materials Required Worksheet 1: Offers


Recommended Activity Complete the worksheet individually. Share your answers with the rest of

the class.



Review Questions What are the three basic contract elements?

Risks of Poor Contract Management

Poor contract management is not just weak negotiation; it can occur at any step

of the contract cycle. It also costs business relationships, delays projects, causes

litigation, and damages the bottom line. Common problems identified by the

International Association for Contract & Commercial Management include:

• Over commitment

• Contracts lack full scope

• Agreement disputes

• Pricing arguments

• Subcontractor issues

Effective contract management will address the contract process from its creation through the renewal

or end. Preparation and ongoing management of contract relationships are essential to the success of

any business.




Topic Objective Review the effects of poor contract management.

Topic Summary Risks of Poor Management

Discuss the effects of poor contract management.



Recommended Activity

Discuss poor contract management experiences as a group. List some

situations on the flipchart/board and consider actions that could prevent

them as a group.



Review Questions What organization monitors contracts?

Practical Illustration

Cameron is looking for vendors for his retail space, and Daniel seems to be a

good fit with his company. Daniel met with Cameron, and they discussed the

ideas. Daniel informed Cameron that he wanted 900 square feet of space and

signs a contract. Cameron, however, only provided 750 square feet of space in

the building. The contract is not clearly worded, and Daniel demands an

increase in area. Cameron already promised the space to someone else, but he is not sure what his

options are. He considers releasing Daniel from the contract to prevent any problems.


Topic Objective Outline the Defining Contract Management Practical Illustration.

Topic Summary Practical Illustration

Discuss the characteristics of contract management.

Materials Required None




Recommended Activity Discuss the outcome of the Practical Illustration. What could Cameron have

done differently?



Review Questions What type of space does Cameron have?



Module Two: Review Questions

1.) What is Not involved in contract management?

a) Advertising

b) Negotiation

c) Relationship management

d) Assessment

Contract management involves the entire contract process, which includes contract creation

negotiation, assessment, relationship management, contract amendment, audits, renewal. A

contract manager does not directly oversee advertising.

2.) At what point in the contract cycle does contract management stop?

a) Assessment

b) End

c) Audit

d) Negotiation

Contract management oversees the entire contract cycle. The end of the contract relationship is

when contract management ends. If the contract is renewed, the process begins again.

3.) What is a cost sharing contract?

a) Fixed price

b) Cost reimbursement

c) Letter

d) Partially defined

Cost sharing contracts are cost reimbursement contracts. In these contracts, the buyer agrees to

pay a price, free, or partial fee, and they typically benefit the seller.

4.) What type of contract is used when there are unknown elements?

a) Fixed price

b) Cost reimbursement

c) Letter

d) Partially defined

Partially defined contracts are used when there are unknown elements. Examples of these

contracts include value contracts, quantity contracts, and time and material contracts.



5.) What is true, once an offer is accepted?

a) There are 30 days to change it

b) The negotiations begin

c) Cannot be changed

d) Counter offer

Offers may be changed by the offeror before they are accepted. An offer is binding, however,

once it is accepted.

6.) What is an example of a consideration?

a) Payment

b) Negotiation

c) Counter offer

d) Communication

When the exchange is made based on an offer that has been accepted, it is a consideration.

Payment for goods and services is an example of consideration.

7.) Besides preparation, what will prevent poor contract management?

a) Subcontracting

b) Ongoing management

c) Over commitment

d) Nothing

Effective contract management will address the contract process from its creation through the

renewal or end. Preparation and ongoing management of contract relationships are essential to

the success of any business.

8.) What is NOT associated with poor contract management?

a) Over commitment

b) Communication

c) Pricing arguments

d) Subcontractor problems

Proper communication will benefit contract management. Common issues with contract

management are Over commitment, Contracts lack full scope, Agreement disputes, Pricing

arguments, and Subcontractor issues.



9.) Every business relationship relies on _________.

a) Friendship

b) Money

c) Contracts

d) None of the above

Every business relationship relies on contracts.

10.) Which of the following are included in contract management?

a) Creation

b) Negotiation

c) Amendment

d) All of the above

Typical contract management activities include - Contract creation, Negotiation, Assessment,

Relationship management, Contract amendment, Audits, Renewal



Appendix

During the facilitation of a lesson, Worksheets may be utilized to help present the material. If a

lesson calls for a Worksheet it will be listed in the Lesson Plan box under Materials Required.

The trainer can then utilize the Appendix of either the Instructor Guide or the participant’s

Training Manual for the corresponding material and then provide it to the participants.



Sample Worksheet 1

Offers

Use the spaces below to quickly write a brief offer. It does not have to relate to work and can be about

anything.

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

After the class discussion, refine your offer below.

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________



Quick Reference Sheets

Below is an example of our Quick Reference Sheets. They are used to provide the participants

with a quick way to reference the material after the course has been completed. They can be

customized by the trainer to provide the material deemed the most important. They are a way

the participants can look back and reference the material at a later date.

They are also very useful as a take-away from the workshop when branded. When a participant

leaves with a Quick Reference Sheet it provides a great way to promote future business.



Certificate of Completion

Every course comes with a Certificate of Completion where the participants can be recognized

for completing the course. It provides a record of their attendance and to be recognized for

their participation in the workshop.



[Nam

e]

Has m

astered the course C

ontract Managem

ent

Aw

ard

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this _

__

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da

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f __

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, 20

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Title



PowerPoint Sample

Below you will find the PowerPoint sample. The slides are based on, and created from, the

Instructor Guide. PowerPoint slides are a great tool to use during the facilitation of the

material; they help to focus on the important points of information presented during the

training.



Full Table of Contents

Preface .................................................................................................................................................... 7

What is Courseware? ............................................................................................................................... 7

How Do I Customize My Course?.......................................................................................................... 7

Materials Required .............................................................................................................................. 9

Maximizing Your Training Power ......................................................................................................... 9

Module One: Getting Started ................................................................................................................ 11

Housekeeping Items .......................................................................................................................... 11

The Parking Lot ................................................................................................................................. 12

Workshop Objectives ......................................................................................................................... 12

Action Plans and Evaluation Forms .................................................................................................... 13

Action Plan Form ............................................................................................................................... 14

Evaluation Form ................................................................................................................................ 15

Pre-Assignment ................................................................................................................................. 16

Pre-Test ............................................................................................................................................. 17

Pre-Test Answers ............................................................................................................................... 21

Module Two: Defining Contract Management ....................................................................................... 26

What is Contract Management? ........................................................................................................ 26

Contract Types .................................................................................................................................. 27

Contract Elements ............................................................................................................................. 28

Risks of Poor Contract Management.................................................................................................. 29


Module Two: Review Questions ......................................................................................................... 32

Module Three: Legal and Ethical Contract Management ........................................................................ 35

Contract Law (I) ................................................................................................................................. 35

Contract Law (II) ................................................................................................................................ 37



Defining Ethical Contract Management ............................................................................................. 38

Ethical Breaches ................................................................................................................................ 39


Module Three: Review Questions ....................................................................................................... 41

Module Four: Contract Management Requests ..................................................................................... 44

Choosing Potential Bidders ................................................................................................................ 44

RFPs and Technology ......................................................................................................................... 45

Calculating Value .............................................................................................................................. 46

Making a Choice ................................................................................................................................ 48


Module Four: Review Questions......................................................................................................... 50

Module Five: How to Create a Contract ................................................................................................. 53

Templates and Software .................................................................................................................... 53

Compliance ....................................................................................................................................... 54

Wording ............................................................................................................................................ 55

Risks of Noncompliance ..................................................................................................................... 56


Module Five: Review Questions ......................................................................................................... 58

Module Six: Contract Negotiations ........................................................................................................ 61

Be Prepared ...................................................................................................................................... 61

Prioritize Terms ................................................................................................................................. 62

Remain Professional .......................................................................................................................... 63

Execute the Contract ......................................................................................................................... 64


Module Six: Review Questions ........................................................................................................... 66

Module Seven: Assess Performance ...................................................................................................... 69



What Performance Can Be Assessed .................................................................................................. 69

Creating Metrics ................................................................................................................................ 70

Measuring Performance .................................................................................................................... 71

Improving Performance ..................................................................................................................... 72


Module Seven: Review Questions ...................................................................................................... 75

Module Eight: Relationships .................................................................................................................. 78

Qualities of Effective Relationships .................................................................................................... 78

Relationship Pitfalls ........................................................................................................................... 79

Building Trust .................................................................................................................................... 80

Maintaining Relationships ................................................................................................................. 81


Module Eight: Review Questions........................................................................................................ 84

Module Nine: Amending Contracts ........................................................................................................ 87

Redlines and Strikeouts ..................................................................................................................... 87

Replacing Clauses .............................................................................................................................. 88

Describing Amendments .................................................................................................................... 89

Amendment Status ............................................................................................................................ 90


Module Nine: Review Questions ........................................................................................................ 92

Module Ten: Conducting Audits............................................................................................................. 95

Why Audit? ....................................................................................................................................... 95

Plan ................................................................................................................................................... 96

Establishing Procedures ..................................................................................................................... 97

Investigate and Report ...................................................................................................................... 98




Module Ten: Review Questions ........................................................................................................ 100

Module Eleven: Renewing Contracts ................................................................................................... 103

Involve Stakeholders ........................................................................................................................ 103

Review ............................................................................................................................................ 104

Check for Accuracy and Changes ..................................................................................................... 105

Update or Cancel ............................................................................................................................. 106

Practical Illustration ........................................................................................................................ 107

Module Eleven: Review Questions ................................................................................................... 108

Module Twelve: Wrapping Up ............................................................................................................. 111

Words from the Wise....................................................................................................................... 111

Review of Parking Lot ...................................................................................................................... 111

Completion of Action Plans and Evaluations .................................................................................... 112

Appendix ............................................................................................................................................. 113

Worksheet 1 .................................................................................................................................... 113

Worksheet 2 .................................................................................................................................... 114

Worksheet 3 .................................................................................................................................... 115

Worksheet 4 .................................................................................................................................... 116

Worksheet 5 .................................................................................................................................... 117

Worksheet 6 .................................................................................................................................... 118

Worksheet 7 .................................................................................................................................... 119

Worksheet 8 .................................................................................................................................... 120

Worksheet 9 .................................................................................................................................... 121

Worksheet 10 .................................................................................................................................. 122

Worksheet 11 .................................................................................................................................. 123

Worksheet 12 .................................................................................................................................. 124

Worksheet 13 .................................................................................................................................. 125



Worksheet 14 .................................................................................................................................. 126

Worksheet 15 .................................................................................................................................. 127

Post-Assessment ............................................................................................................................. 128

Post-Assessment Answers................................................................................................................ 132

Recommended Reading List ............................................................................................................. 137


Contract Management Sample - CorporateTrainingMaterials.com

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