Thursday, March 8, 2012

Cradle to Grave Procurement Contract Management Tasks

In my blog KnowledgeToNegotiate I've focused on providing knowledge that is needed to negotiate contracts. This is the initial post of my complimentary blog on contract management To start I wanted to list all the tasks that I associate with contract management from cradle to grave. I will then add new about contract management starting with a blog about contracts systems.Then I will start posting from # 22 on the list as 1 through 21 are addressed in the other blog.I will list all posts on my website under a Contract Management page. If you have suggestions for things to add please send me a message using the information on my website .

Cradle to Grave Procurement Contract Tasks
1. Gather internal requirements.
2. Qualify suppliers
3. Select contract approach
4. Select contract strategy
4. Select or create the contract template
5. Modify the template for requirements, work risks, supplier risks and contract approach.
6. Gather and review specifications, statement of work or scope of work.
7. Prepare bid or proposal documents
8. Provide supplier with all documents to bid upon or provide quotes against
9. Review supplier bid or proposal, assumptions, exceptions, and red-line.
10. Analyze the impact of all for cost, risk, and impact of changes.
11. Identify No’s or non-negotiable points that never will be agreed. Provide those to supplier
12. Establish goals and minimums for each point.
13. Determine the negotiation approach, tactics,
14. Gather the tools and information you need to use.
15. Create your negotiation plan
16. Gather and brief your team
17. Schedule the negotiation
18. Prepare negotiation tools to help persuade
19. Negotiate terms and cost.
20. Get necessary approvals
21. Contract execution.
22. Contract filing and creation of contract management file.
23. Manage negotiations during mobilization of the work, requests for changes.
24. Manage and document performance.
25. Manage deliverables.
26. Negotiate changes.
27. Negotiate claims or disputes.
28. Negotiate amendments and file amendments
29. Manage payment or receivables
30. Manage bailed, loaned, or consigned items and their accounting or return.
31. Manage confidential information provided or received.
32. Manage any early terminations with or without cause.
33. Manage meeting minutes and correspondence.
34. Manage notices as required.
35. Manage acceptance and test activities required by the contract
36. Provide information or reporting on compliance.
37. Manage final acceptance and turnover of all required documents.
38. Manage collection and return of any items that must be returned upon completion.
39. Close or renew contract.
40. Produce documents and provide support for any litigation.
41. Include documents for retention in accordance with your retention plan.

At any point in time you may be asked to identify:
What agreements are active or closed?
What is the spend status and how much remains on the contract?
What are the current terms?
What were the terms on a specific date or period?
Who the parties are?
What type of business they are?
Where are they from?
How much do you spend with them?
Who the internal customer(s) are for the contract?

If you were ever to divest a portion of you business or outsource and transfer contracts to the outsource supplier you would need to identify:
a) What contracts are applicable?
b) Can they be assigned?
c) Do you need to retain the agreement for use by other businesses?
d) What is the best approach to meet the needs of needing to both assign the agreement and still have a contract?

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