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Contract Management Corporate Training Materials. Module One: Getting Started. The whole duty of government is to prevent crime and preserve contracts . Lord Melbourne.
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Contract Management Corporate Training Materials
Module One: Getting Started The whole duty of government is to prevent crime and preserve contracts. Lord Melbourne • If contracts are managed well, business relationship will flourish. If they are not, companies face financial loss, relationship harm, and damaged reputations.
Module Two: Defining Contract Management Thoroughly read all your contracts. I mean thoroughly. Bret Michaels • 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.
Module Two: Review Questions • What is Not involved in contract management? • Advertising. • Negotiation. • Relationship management. • 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. • At what point in the contract cycle does contract management stop? • Assessment. • End. • Audit. • 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.
Module Two: Review Questions • What is a cost sharing contract? • Fixed price. • Cost reimbursement. • Letter. • 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. • What type of contract is used when there are unknown elements? • Fixed price. • Cost reimbursement. • Letter. • 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.
Module Two: Review Questions • What is true once an offer is accepted? • There are 30 days to change it. • The negotiations begin. • Cannot be changed. • Counter offer. • Offers may be changed by the offeror before they are accepted. An offer is binding, however, once it is accepted. • What is an example of a consideration? • Payment. • Negotiation. • Counter offer. • 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.
Module Two: Review Questions • Besides preparation, what will prevent poor contract management? • Subcontracting. • Ongoing management. • Over commitment. • 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. • What is NOT associated with poor contract management? • Over commitment. • Communication. • Pricing arguments. • 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.
Module Two: Review Questions • 9. How many square feet of space did Daniel want? • 750. • 675. • 900. • 950. • Daniel requested 900 square feet of retail space. Cameron only provided 750 square feet of space in the end. • What space did the contract define? • 750 sq./ft. • None. • 900 sq./ft. • 250 sq./ft. • Daniel requested 900 sq./ft. and Cameron only gave him 750. The contract was not specific about the size of the space, creating a dispute between Cameron and Daniel.
Module Three: Legal and Ethical Contract Management A man without ethics is a wild beast loosed upon this world. Albert Camus • Contract management is rooted in laws and ethics. A contract is not enforceable if it is not a legal. It is essential to have an understanding of the laws that govern contracts and adhere to the ethical standards established in order to avoid problems in the future.
Module Three: Review Questions • Why do states require certain contracts to be in writing? • Prevent confusion. • Federal law. • Increase fees. • Prevent fraud. • Oral contracts are legally enforceable. Certain contracts, however, are required to be in writing, which varies by state. Contracts are out in writing to protect people from fraud. • Who would Not be competent to sign a contract? • College student. • Elderly. • Minor. • Bilingual person. • Minors are not typically considered competent to sign legal contracts. Individuals who lack adult comprehension are also incompetent. There are tests to assess competency if it is necessary.
Module Three: Review Questions • What needs to be included in online contracts? • Business name. • Refund policies. • Address. • All of the above. • In most cases, the laws require business names, addresses, refund policies, and methods for complaints must be prominent for a contract to be upheld. These laws vary according to federal and state regulations. • What is necessary for an electronic signature to be valid? • They are not valid. • They need to be duplicated. • They need to be large. • They need to be signed three times. • Electronic signatures can be legally valid, but it must be possible to duplicate them for them to be valid. Additionally, electronic signatures are not allowed in certain cases, which varies by state.
Module Three: Review Questions • What should companies instill to ensure ethical contract management? • National Contract Management Association. • Online surveys. • Contact forms. • Code of Ethics • The National Contract Management Association does have a Code of Ethics. Individual companies, however, should have their own Codes of Ethics that relate to contract management and the employees. • What does certification indicate? • Qualification for work. • Ethical breach. • Nothing. • Ethical interest • Part of ethical contract management is that the individuals are qualified for the work. Having a certification provides evidence that the contract manager or employee has the necessary qualifications to perform the job.
Module Three: Review Questions • What is intentional misrepresentation? • Conflict of Interest. • Fraud. • Kickback. • Gift. • Fraud occurs when there is any intentional misrepresentation. Direct communication, indirect communication, and the failure to communicate different ways that fraud can occur. Fraud must always be reported. • What determines ethical violations? • Federal law. • International law. • State law. • All of the above. • Ethical violations are often cultural. Laws vary between countries and states, so it is important to balance, state and federal laws with any international laws that may apply to the business dealings.
Module Three: Review Questions • Why did Samantha give Jonah a gift card? • It was his birthday. • She wanted to thank him. • She was trying to bribe him. • She owed it to him. • Samantha knew Jonah casually. She gave him a $50 gift card after meeting with him. She gave him the gift card, however, because it was his birthday. • What Did Jonah do after receiving the gift card? • Use it. • Contact a peer. • Thank Samantha. • Return it. • Jonah returned the gift card without any explanation. Samantha was insulted by this action and assumed he thought she was trying to bribe him.
Module Four: Contract Management Requests Life presents many choices, the choices we make determine our future. Catherine Pulsifer • RFPs and other requests will determine who partners with you, so they need to be the best. Choose your bidders and design your RFPs carefully.
Module Four: Review Questions • Who determines the qualifications and skills that bidders should have? • Company issuing the RFP. • Government agencies. • Bidders. • Clients. • Bidders must be able to provide the necessary skills and qualifications. The company issuing the RFP will need to determine what skills and qualifications are necessary for bidders to have before the process begins. • What will narrow down bidders? • RFP. • Contract. • RFQ. • RFI. • Before issuing RFPs companies may choose to issue RFIs or Requests for Information. The RFIs will identify which companies have the necessary skills, experience, and resources to complete the required tasks.
Module Four: Review Questions • What determines a score’s weighting? • Cost. • Personal preference. • Priorities. • Company record. • Weighting is done by priority. Greater emphasis is given to the criteria with higher priorities. Weighted is used in distinct scores based on weighting can be calculated as well as combined scores based on weighting. • What is the criteria for a RFP based on? • Work for little money. • Necessary skill sets. • Quit whenever they want. • Act as managers. • The necessary skill sets identified before the RFP is issued will become the criteria. The criteria is used to calculate the value of the different bids.
Module Four: Review Questions • What will protect privacy in the bidding process? • Open bids. • Closed and sealed bids. • Security. • Blind reviews. • Closed and sealed bids will protect the privacy of the bidders in the bidding process. Along with the protection of privacy, it will prevent any information about the process being leaked to the candidates before it is announced. • What is true of RFP goals? • They should be achievable. • They should be high. • They should be low. • They do not have to be in writing. • The goals of RFPs should be achievable. If goals are not achievable, the bidders will not be motivated to take on the project.
Module Four: Review Questions • What is true of a panel? • Everyone should have the same point of view. • It should only meet once. • Only three people should be involved. • It should provide different perspectives. • A panel should provide a well-rounded point of view, which is why the panel should be made up of people from different aspects of the business. The number of people on the panel will vary with the business. • When should the announcement be made? • When a decision is made. • After the contract is finalized. • It does not matter. • The candidate may lose interest. • The announcement should be made when the contract is signed and finalized. If the top choice falls through, the second choice will not realize they are the second choice for the contract project.
Module Four: Review Questions • Why did Chris favor his top choice? • The quality. • The customer service • The timeframe. • The price. • Chris favored the cheapest bid. His top priority is to save the company some money in the long-term. Mike placed a higher priority on customer service. • Why did Mike object to the Chris’s top choice? • High turnover. • High price. • Poor product. • All of the above. • Mike objected to Chris’s top choice because the company had a high rate of turnover and did not train the employees well. He believed this would affect the customer service. Chris did not think it was an important factor.
Module Five: How to Create a Contract Civilization exists by geological consent, subject to change without notice. Will Durant • We have already addressed some basic contract types and laws. When beginning the contract process, it is important to ensure that the contract created is legal, beneficial for all parties, worded correctly, and that the terms for compliance are clear.
Module Five: Review Questions • What is the benefit of contract management software? • It is free. • Templates are free. • Creating standardized contract formats. • There are none. • Softwarewill create standardized formats that will make issuing contract in the future easier. It also provides information on legality and clauses. • What is a good starting point for creating contracts? • RFPs. • Templates. • RFIs. • Technology. • There are many free templates online, and they can reflect different types of legal contract. While they are useful as a good starting point, templates may not cover all of the applicable laws.
Module Five: Review Questions • Which clause identifies the parties involved? • Jurisdiction. • Arbitration. • Governing law, • Opening. • All of the answer choices are clauses that can appear in contracts. The opening clause identifies the parties who are involved in the contract. Names and titles are included in the opening clause that begins the contract. • What is an alternative to the jurisdiction clause? • Arbitration clause. • Opening clause. • Governing law. • There is none. • The jurisdiction clause determines which court will hear any disputes between the parties named in the contract. An arbitration clause ays out the groundwork for arbitration and replaces the jurisdiction clause.
Module Five: Review Questions • What should wording in contracts be? • Specific. • Brief. • Understandable. • All of the above. • The wording of contracts need to specify what is required from each party involved. The specific wording, however, should be brief and to the point. Above all, the wording of the contract needs to be understandable and limit legalese. • What will determine which clauses and wording to include in a contract? • Scope. • Timing. • Jurisdiction. • All of the above. • The clauses and wording used in the contract will be determined by the scope of the project. The business model will also guide the contract, including the clauses and wording that are necessary.
Module Five: Review Questions • What occurs when noncompliance creates legal problems for a company? • Jurisdiction review. • Damage to the bottom line. • Nothing. • New legal team. • If an organization faces legal problems due to noncompliance, even vendor noncompliance, the reputation of the company will also suffer. As the company reputation suffers, so does the company’s bottom line. • What occurs if a contract is not legally compliant? • The creator is arrested. • It is still legal. • Nothing. • It is void. • If contracts are not legally compliant, they are void. Depending on the contract and level of the noncompliance, other legal problems can develop for the parties who are involved.
Module Five: Review Questions • What laws did Alec’s contract reflect? • Texas • California. • Federal. • Unknown. • Alec used a contract from his former company, which was based on Texas. It was not compliant with the laws that governed the contract he was drawing up with Maggie because the contract was governed by California law. • What did Alec and Maggie do before moving forward? • Rewrite the contract. • Use another template. • Consult legal. • Purchase software. • Alec and Sophie knew that the contract was not in compliance. Since it was going to be governed by California law, they chose to contact the legal department before moving forward in the process.
Module Six: Contract Negotiations Failing to prepare is, generally speaking, preparing very well to do the wrong thing. John F. Kennedy • While the goal of negotiation is to create an agreement that is beneficial for both parties, it is also a good time to go over the contract with a fine tooth comb and identify any noncompliance or potential pitfalls
