Contract Administration & Financial Risk Analysis

ADVANCED TREASURY MANAGEMENT

With the ever-increasing dependency on contractors to carry out functions that might previously have been done in house, Contract Administration is emerging as an essential competency for many professionals and managers. Many of the functions of contract administration involve the planning and development of contracts. These functions include an understanding of all the major components of the contract. The components can include delivery dates, disbursement dates and amounts and terms to accept or dissolve the agreement.

Contract administrators often will include the means by which to measure the performance of both parties to determine if they are meeting their obligations, as well as procedures to monitor the performance of both parties. When contracts are administered then there is a need for financial risk analysis. All employees involved in the contracting process need to be able to deploy best practices in post-award contract administration to enable their organisations to get the full benefit from procurement activity.

Financial Risk Analysis is very essential as it introduces employees in the field of finance and administration, alternative concepts, measures and approaches to the evaluation of financial risks present in the corporate, financial and insurance sectors. To provides the opportunity to develop a depth of understanding regarding the alternative strategies and instruments used in the management of these financial risks.

This course is designed to give practical case studies and introduces a multidisciplinary approach to tackle relevant policy and strategy issues. It explores cutting-edge financial models for active risk analysis and contract administration.

COURSE OBJECTIVES

This intensive seminar is designed to emphasize on the tools, skills and techniques required by executives to strengthen awareness and interest in best practices, widely used and recommended to excel as multifaceted leaders in today’s dynamic business world. At the end of the workshop participants should be able to:

Understand the contract legal implications (fully documented or ‘design and build’)
Overview of requirements, documents, specifications, plans and processes
Roles of the parties under the contract
Identify and address delays in performance
Modify contracts and exercise options
Select and pursue a formal contract remedy and recognize fraud
Identify and resolve contract disputes
Describe contract claims procedures
Assessment of the operational efficiency
Prediction of profitability and growth prospects
Assess and prepare for uncertainties in markets, commodities pricing, exchange rates, and contract fulfillment
Better invest cash reserves, and contract for loans and credit in ways that balance risk and expected returns
Understand and assess the levels of risk to better guide your investment

Module 1

ROLES AND RESPONSIBILITIES OF A CONTRACT MANAGER

Drafting skills
Formalities, structure and format
Drafting with or without precedents
Commencing the contractual process
Relationship building
Setting Targets, timelines and periodic review
Defining expectations
Project Manager – Outsourcing contracts

Module 2

CONTRACT ADMINISTRATION FOCUS

Monitoring Process
What is project or programme monitoring?
Types of monitoring
Roles of monitoring
The systematic collection, analysis and use of information from projects
Scope and benefits of monitoring
The monitoring report
Evaluation Process
Techniques of evaluation
Scope and methods of evaluation
Roles and responsibility
Systematic and objective assessment of ongoing project or programme
Comparative analysis of processes: Monitoring and Evaluation (M & E)
Appraisal and comparison of processes
Government and implementing agencies – Responsibilities to M & E
Strategic planning process of Government
Institutional framework & arrangement for M & E – Policy, Planning, Monitoring & Evaluation Departments (PPMEDs)
Overview of World Bank tools , methods and approaches to Monitoring and Evaluation

Module 3

FEATURES OF CONTRACT MANAGEMENT

Contract Management Process
Contract Administration
Negotiating and Managing Performance through Service Level Agreements
Identify issues to be managed
Establish an effective team
Lists of services and deliverables expected
Importance of having a well-constructed SLA
Evaluating and managing contractor performance
Developing, implementing and measuring Key Performance
Indicators to monitor the quality of service
Drive business value to meet company’s goals
Statement of Works
Change Orders
- Assessment of Past Performance an Current Position
- Prediction of Net Income and Growth Prospects
- Prediction of Bankruptcy and Failure Outsourcing Contracts

FINANCIAL STATEMENT ANALYSIS

Module 4

FINANCIAL RISK ANALYSIS CONCEPTS

Module 5

Developing Financial Risk Models