Negotiating and Contracting in Procurement & Supply

INTRODUCTION

One of the fundamental competencies in the business world is the art of negotiation. Individuals and teams that engage in negotiations with customers and contractors play a crucial role in fostering better external commercial relationships. In the realms of procurement and contract management, this skill becomes a valuable asset for organisations striving to gain competitive advantages. However, it's essential to be well-versed in the strategies and tactics that others may employ to ensure favourable outcomes.

This engaging and immersive training course empowers participants to delve into the critical aspects of contract creation and negotiation within the customer-supplier relationship. The course employs role-play and other interactive techniques, allowing delegates to practice effective strategies while steering clear of potential pitfalls in crafting commercial agreements.

Participants in this training course will develop the following key competencies:

• Grasp the legal intricacies associated with contract formation.

• Comprehend the principles and diverse strategies for negotiating commercial agreements.

• Learn how to prepare for negotiations with contractors and suppliers effectively.

• Understand the pivotal negotiation factors related to costs and prices.

• Gain insights into various approaches to conducting commercial negotiations.

TRAINING OBJECTIVES

The Negotiation and Contract Management in Procurement and Supply training course is designed to achieve the following objectives:

• Refresh participants' understanding of the contract creation process.

• Examine the essential components of legally binding agreements.

• Master the elements necessary for the formation of a contract.

• Recognize the role of contract terms in mitigating commercial risks.

• Differentiate between various negotiation styles, comprehending their merits and demerits.

• Formulate negotiation plans and execute them effectively.

• Apply negotiation techniques to reach mutually beneficial agreements.

• Analyse costs and pricing for negotiation purposes.

• Implement negotiation skills at different stages of the contracting cycle.

WHO SHOULD ATTEND?

The Negotiation and Contract Management in Procurement and Supply training course is ideal for a broad spectrum of professionals engaged in procurement and supply chain management. Specifically, it offers significant value to:

• Contract Team Leaders and Administrators

• Contract Engineers and other Contract Professionals

• Project Managers and Coordinators

• Specifiers and Buyers

• Procurement Executives

• Service Delivery Professionals

• Individuals who employ negotiation as a strategic tool in dealings with contractors, external suppliers, customers, or commercial partners.

TRAINING APPROACH

The training course adopts an engaging and interactive approach, incorporating a diverse range of teaching methods. These include practical negotiation exercises, role-play scenarios, case studies, interactive Q&A sessions, and collaborative group discussions. Each module is complemented by a presentation that emphasizes key focal points.

Participants will receive comprehensive training materials featuring illustrative examples. Moreover, delegates are encouraged to actively engage in exercises, enabling them to receive personalized feedback on their performance. Discussions will provide insights into contemporary negotiation practices and their practical application in real-world scenarios.

TRAINING OUTLINE

Day 1 – Essential Aspects of Contract Formation

• The journey towards contract creation

• Deconstructing a typical commercial agreement

• Unravelling the interplay of different contract components

• An array of commercial agreements between customers and suppliers

• Legal guidelines that transform agreements into binding contracts

• Harnessing contract terms for managing commercial risks

Day 2 – Fundamentals of Contract Negotiation

• Alternative strategies for crafting successful agreements

• Employing distributive negotiation to steer the bargaining process

• Assessing the merits and pitfalls of win-lose approaches

• Leveraging integrative negotiation to address underlying interests

• Exploring the benefits and challenges of pursuing win-win outcomes

• BATNA – Building a viable Plan B

Day 3 – Practical Tools and Techniques for Effective Negotiations

• Crafting a strategic negotiation plan

• Analysing the sources of power within the relationship

• Setting clear negotiation objectives

• Defining roles and responsibilities

• Securing the necessary negotiation mandate

• Practicing essential skills to enhance negotiation outcomes.

Day 4 – Analysing and Negotiating Costs and Prices

• Distinguishing between costs and prices

• Utilising cost-based pricing techniques

• Navigating pricing considerations in the context of the market

• Employing cost breakdowns and open book information to inform negotiations

• Crafting effective negotiation strategies for pricing discussions

• Linking pricing to other negotiable elements

Day 5 – Utilising Negotiation in Contract Development and Management

• Identifying negotiation opportunities throughout the contracting cycle

• Formulating proposals and engaging in bargaining to transfer contract risks

• Enhancing contract terms through skilful negotiation

• Navigating the negotiation of contract variations and change orders

• Leveraging negotiation in addressing claims and disputes

• Collaborating with third parties to facilitate negotiated settlements

Certificate of Completion: Upon successful completion of the course, participants will receive a Certificate of Completion from Al-Majd Pathways Centre (APC).