Why Choose this Course?
This course will examine the latest contracting techniques to deliver service performance, including service level agreements, output based contracts, payment by outcome and contract scorecards. This is important because Procurement professional and/or specialist are increasingly being asked to find new ways of helping their organisations achieve strategic goals through better purchasing. The budgets of commercial and Government organisations are under pressure like never before. Such an approach requires new and sophisticated methods to manage supplier performance, in order to deliver the desired results.
This course will feature:
- The movement from risk allocation to collaborative working
- The benefits of using service level agreements for quality assurance
- How to improve contract relations with internal and external contractors
- Knowledge of the means to identify, evaluate & manage risks through result-based methods
- Deploying practical skills to apply the methodology in practice, constructing & controlling contract negotiations & disputes
What are the Goals?
By the end of this course, participants will be able to:
- Develop strategies to transfer risks from client to the supplier.
- Create a results-based specification to set service performance frameworks that achieves results.
- Provide better outcomes from contracts & harness the benefits of output-structured requirements.
- Evaluate bid responses that offer results-based contracted services.
- Construct a results-based remuneration for contractors.
Who is this Course for?
This course will benefit all levels of personnel engaged in purchasing and procurement, commercial and contracts management departments, and technical operatives providing performance under service level or other performance related agreements. This course is suitable for a wide range of professionals but will greatly benefit:
- Engineering Project Managers, Construction Managers, Tenders Managers
- Contracts Administrators, Project Managers/Coordinators, Contracts Officers & Managers
- Maintenance Managers and Systems Managers
- Those who are involved in the planning, evaluation, preparation and management of tenders, awards, and service contract performance services
How will this be Presented?
This course will utilise a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. This includes high levels of participant discussion, group interaction, delegate group exercises and case studies. Materials include existing contemporary English language contracts in many jurisdictions. Delegates will be encouraged to raise their own issues and problems faced within their industry or organisations for discussion on a confidential basis.
The Course Content
The Context for Results-Based Contracting
- Traditional contracting methods under the spotlight
- SWOT analysis – defining requirements by inputs
- How does a results-based approach differ?
- What is the application for results-based contracting?
- Implications on supplier selection procedures
- Moving beyond lowest cost evaluation
Developing a Results-Based Customer Requirement
- Inputs, Outputs and Outcomes
- Creating a results-based specification
- What are the task outputs?
- Developing a framework for managing contract risk
- Analysing the performance standards we need
- Quantifying and costing the work required
Using the Service Level Agreement Framework to Derive Results-Based Contracting
- What will contract success look like?
- What should be measured?
- Focusing on performance - Carrots or sticks to encourage achievement?
- Sourcing measurement data and reporting on achievement
- Key elements of the SLA
- Structuring the SLA
Using a Contract Scorecard
- Origins of the scorecard approach and KPI
- What value does a scorecard add?
- Balancing the needs of stakeholders
- Planning and constructing a scorecard
- The scorecard quadrants: • Financial • Quality • Relationship • Strategic
- Testing and reporting
Managing a Results-Based Contract
- The ‘running in’ period
- Keeping the contract refreshed
- Managing contract variations
- Monitoring achievement and intervention options with an under performing contractor
- Building Contract Governance structures
- Learning and applying lessons for the next outsource
- AZTech Certificate of Completion for delegates who attend and complete the course