Pro-D Supply Management (Procurement) Track
Module 5
Principles of Contracting (CP)
Module Summary
Do you work with contracts on a regular basis? If you are saying to yourself “no,” are you sure? How about purchase orders?
It is interesting, when your trainer normally asks the first question to an audience, about half of the folks raise their hands. Then when they asks the second question, all of the audience raise their hands. Then they asks the first question again, and they (you?) get the point. A purchase order is a contract!
Do your contracts and customer/supplier agreements have “teeth” or are they nothing more than a collection of legal jargon that nobody reads, much less understands; until there is a legal issue?
This course is twofold:
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First, the basics of contracts are covered. To start, all contracts will have four basic elements: (1) an offer and acceptance, (2) consideration, (3) competent parties and (4) a legal purpose.
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Next the course will differentiate between Price contracts (typically issued for a product) vs. Cost contracts (typically issued for a service).
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Although most agreements are typically one-sided in favor of the author, students will learn how to structure language in the intent of partnering, to still maximize customer expectations, but to benefit the supplier as well.
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To round out this course, you will have the opportunity to complete a 50-question quiz to test your knowledge and apply what you learned. Successfully pass this module and the other 5 modules to earn your Certificate of Achievement from Missouri State University.
Benefits of Attending
Upon completion of the Principles Of Contracting course, the participant will:
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review the four key elements of a contract which are: offer and acceptance , consideration , competent parties and a legal purpose
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define the UCC-Uniform Commercial Code and how its language should mirror the contract
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review a key UCC provision: The Statute of Frauds and how it applies to written vs. oral contracts
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establish the relationship between the purchase order and the contract
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review the two types of Letters of Intent
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compare and contrast Price type contracts including Firm Fixed Price, Fixed Price with Adjustments and Fixed Price with Incentives
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compare and contrast Cost type contracts including Cost with Fixed Fee, Cost with Award Fee and Cost Plus Incentive Fee
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define Indefinite Delivery type contracts and where they would be applicable
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define Service Level Agreements (SLAs) and where they would be applicable
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review key T’s & C’s including Intellectual Property, Indemnification, Limitation of Liability, Reservation of Rights and Force Majeure
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compare and contrast UCC provisions on buyer’s remedies vs. seller’s remedies in the case of a breach
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develop the teeth clause: Price Change,
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develop the teeth clause: Volume Rebates Based On Business Growth,
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develop the teeth clause: Mutual Cost Reduction Programs,
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review the five key objectives of Contract Administration
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understand the role of Work Control including compliance and contract closeout based on Suspension (temporary), Conclusion (for cause or convenience) or Termination (natural life)
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compare and contrast the methods for dispute resolution including mediation, arbitration or litigation
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understand how to roll out these great techniques to your supplier including the use
Self-Paced Learning
You will be provided with access to the BMTG e-Learning Academy which will guide you through Module 1: Fundamentals of Supplier Relationship Management.
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To ensure a smooth learning experience, each Module is presented as a comprehensive "Course Book" within the user-friendly BMTG e-Learning Academy.
The Course Book is divided into four chapters, providing you with in-depth study materials and practical insights.
Here's what you can expect in each Course Book:
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Chapter 1: Learning Objectives: Three downloadable PDFs serves as your study materials offering detailed information on the course topic comprising of a set of learning objectives that you can refer to it at your own pace, allowing you to absorb the content effectively.
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Chapter 2: PowerPoint Slide Deck with Audio: As an additional learning resource, the PowerPoint Slide Deck is accompanied by audio narration to guide you through the study materials. This audio-led approach ensures a dynamic learning experience.
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Chapter 3: Review Points: A summary PDF of the key learning outcomes to be studied prior to attempting your online assessment.
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Chapter 4: 50 Question Multiple Choice Assessment: To assess your understanding of the course content, each Course Book includes a 50-question multiple choice assessment. The passing score for the assessment is 65%, thereby ensuring you have grasped the core concepts effectively. You will be able to take and retake the assessment until you pass.
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