Contract Management Optimisation

Speaker: Gustavo Perez

Perth, Western Australia 11 March 2015

(ABN: 36826470905)

Alkimos WA 6030

Ph +61-432-887-108

clients

profit organisation development

Start up

Pre-qualification

Tender, Negotiation

Service execution

Close out

Pitfalls – pre-award

• Lack / deficient procuring strategy

• Lack / poor pre-qualification

• Non-competitive process

• Incomplete ITT and poor ITT analysis

• Lack of feedback from former projects

• Late involvement of execution team

• Superficial site visit

• Ineffective clarifications

• Incomplete work method statement

• Incomplete deliverables list

• Poor risk analysis

• Deficient work schedule

• Inaccurate cost estimate

• Deficient evaluation plan

• Ineffective tender presentation

• Ineffective negotiation

• Award without contract

Pitfalls post-award

• Lack of contract management plan

• Superficial handover

• No training

• No communications protocol

• Not learning from the past

• Mobilising without plan /minimum requirements

• Deficient kick off meeting

• Late progress reports

• Ineffective progress meetings

• Poor records

• Site - head office disconnection

• Lack of performance management

• No customer relationship management

Losses

• Monetary

• Reputation

• Morale

Optimisation measures

• Develop procuring strategy

• Improve processes

• Prepare contract management plans

• Train personnel

• Implement performance management

• Establish customer relationship management

• Capture / spread lessons learned

• Set up an issues management system

• Keep good records

• Create cost consciousness

• Improve change management

• Manage risks and opportunities

• Ensure positive cash flow

• Be thorough preparing contractual documents

Unleashing Value

• Equitable contracts

• Lower risks

• Increase recovery costs / EOTs

• Sufficient risk costs

• Unambiguous price schedules

• Less disputes

• Complete within schedule, budget, quality

• Avoid LDs / claims for breach

• Satisfied clients / vendors

• Proud, competent, committed employees

• Learnings captured / shared

• Productivity /cost feedback to tendering

• Increased reputation: new jobs

• Increased profit

Way Forward

Call us and we will help you unleash value

from your contracts!

0432 887 108

Gustavo Perez