As every Procurement negotiation that is successful is represented by some form of contract, if you want to negotiate in Procurement there is much that you need to understand about contracts. Contracts Knowledge falls in several basic areas.
1. Undestanding Contracts and Contract Law Principles
- Basic Elements
- Breach and Remedies
- Commitment Standards
- Defenses making contracts voidable
- Contract Construction
- Qualifying language
- Actions to manage enforceability
- Liability
- Protection against Supplier Actions
- Negotiating a clause
- Whose contract to use
- Breach and termination
- Understanding what should be in contracts and why.
- Understanding potential costs and risk that exist in procurement relationships and how to manage them
- Cost, Total Cost and how terms in contracts tie to cost.
- How to drive the Supplier’s behavior.
- What’s needed to manage performance.
- Understanding how Suppliers try to manage or avoid liability, cost and risk
- Qualifying language.
- Limits of liability
- Knowledge Qualifiers
- How to draft and negotiate effective contracts and terms that will be enforced.
- How to do standard contract tasks
