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The emergence of complex procurement projects with multiple goals and stakeholders has underlined the need for innovative contracting models. This workshop, taught by Paul Emanuelli through the Supply Chain Management Association of Ontario (SCMA Ontario), will explore a broad range of contracting structures and strategies that serve as the building blocks for designing the appropriate contract for your complex procurement projects.

Drawing from a wide spectrum of industry practices ranging from large construction and infrastructure projects to complex services and technology initiatives, this seminar will cover the following topics with a focus on the business implications:

  • Assessing contracting structures through an analysis of the six advanced contract planning factors: (i) design responsibility; (ii) contract management burden; (iii) pricing structures; (iv) innovation incentives; (v) timing incentives; and (vi) cost saving incentives.
  • Understanding the “DNA of the Deal” by establishing clear scoping and pricing structures and identifying the distinction between specification-based scoping and conceptual end-requirement scoping.
  • Analyzing different pricing models to understand which structure or structures are best suited to the different components of your specific project.
  • Identifying the eight categories of advanced contracting terms that are impacted by the “DNA of the Deal”: (i) interpretive provisions; (ii) contracting roles and responsibilities; (iii) performance standards; (iv) payment mechanisms; (v) confidentiality safeguards; (vi) intellectual property provisions; (vii) indemnity, insurance and limitation of liability clauses; and (viii) dispute resolution and termination protocols.
  • Comparing the advantages and disadvantages of using standard and newly emerging contracting structures ranging from stipulated sum, cost-plus, and time and materials contracts to advanced construction management, design-build, P3, and integrated project delivery models.
  • Anticipating emerging issues in advanced contracting, including the integration of technology terms within construction contracts for complex infrastructure projects, the application of integrated project delivery techniques within P3 frameworks, the realignment of contract architectures for migrating from installed software solutions to cloud-based systems, and the layering of tiered contract terms for multi-use and multi-institutional procurement initiatives.
  • Applying the appropriate analysis to identify which tendering format and strategy is best suited to the contract models used in your different projects.

Day 1 will provide an overview of advanced contract design principles to assist procurement advisors with their major project planning:

  • Design Factors Overview
  • The DNA of the Deal
  • The Underpinnings of Pricing Structures
  • Moving Beyond Boilerplate Battles
  • Advanced Contracting Strategies

Day 2 will consist of practical group-based workshops exploring the themes covered in Day 1:

  • Designing scoping statements that properly anchor into pricing structures and align to different pricing models and payment sequencing strategies.
  • Identifying the key leverage point distinctions between design-bid-build, contract management, design-build, and integrated project delivery models as they relate to prefabricated specification designs and supplier-driven designs.
  • Understanding how the key building blocks of stipulated sum, cost-plus, and time and materials contracts differ from advanced construction management, design-build, P3, and integrated project delivery models, and assessing the key strategic factors for establishing a contract structure that is properly tailored to the specific procurement.
  • Assessing how the burden of managing multiple contractors impacts the overall approach to contract design and limits an institution’s range of contract design options.
  • Selecting a tendering format that properly aligns with your contracting strategy and understanding how the contract design details impact the evaluation and award process.
  • Exploring high-profile case studies dealing with change order issues and identifying the sources behind ongoing cost overrun problems.
  • Understanding how to properly integrate timing incentives and cost-saving bonuses into your contracts to create realistic leverage points for contract management.
  • Developing strategies to properly deal with confidentiality considerations and proprietary rights in the design of complex project specifications.
  • Establishing the proper approach to risk allocation and limitation of liability by tying contract breaches to clear performance terms, defining direct damages for contract breach, and establishing appropriate dollar values for liability caps.
  • Integrating appropriate dispute escalation procedures into your complex contracts to enable issue resolution, integrate clear break fees, and establish effective project off-ramps.

Current, high-profile complex projects will be explored to illustrate the issues being covered.

For pricing information or to register, please visit the SCMA Ontario event page.