Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Efficient Contract Review for Effective Compliance

1,175 views

Published on

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

Efficient Contract Review for Effective Compliance

  1. 1. Efficient Contract Review for Effective Compliance Breakout Session #: C14 Presented by: Robert E. Jones, CFCM, CCCM Date: July 22, 2013 Time: 4:00 PM – 5:15 PM
  2. 2. Agenda 1. Goals 2. Efficient Process 3. Documentation 4. Compliance 3
  3. 3. Why is contract review important? • What can go wrong in a contract? • Can you identify that up front? • How do some of you review contracts today? 4
  4. 4. 1.0 Goals of Contract Review 1. Confirmation 2. Expectations 3. Risk Analysis 5
  5. 5. 1.1 Confirmation • Did the customer order what they said they were going to order? • Correct quantity and pricing? • Same T&C as pre-negotiated? 6
  6. 6. 1.2 Expectations • What are the T&C, Spec, and SOW requirements? • Can we meet the delivery deadlines? 7
  7. 7. 1.3 Risk Analysis • What kind of risk is involved? – Technology – Schedule – Financial/T&C • How can we mitigate the risk? 8
  8. 8. Risk Assessment Tool 9
  9. 9. 2.0 Keys to an Efficient Process 1. Identify subject matter experts (SME) (department managers?) 2. Define a system for tracking documents, revisions, reviews, and approvals (Document management, SharePoint, ERP) 3. Regular meetings and follow-up (weekly huddle) 10
  10. 10. 2.1 Subject Matter Experts (SME) • T&C - payment terms, warranty, insurance, termination, liquidated damages, etc. • Quality - quality requirements or certifications • Spec - can we build the product and meet the spec? • Exports - product jurisdiction, classification, and licensing requirements 11
  11. 11. 2.1Subject Matter Experts (SME) • Materials - do we have the supplies and can we get them in time? • Software - do we have updated test software? • Planning - is there capacity to build the product? • Program Management - are there any SOW issues? 12
  12. 12. 3.0 Documents for EVERY file 1. Signed Contract or Purchase Order – Including a record of negotiations, with references to other documents 1. Terms & Conditions – including any Quality clauses 1. Non-Disclosure Agreement (NDA/PIA) 2. Specification and/or Drawing – what is being built, designed, or serviced 13
  13. 13. 3.0 Documents for EVERY file 5. Statement of Work – how and where the work is to be performed 5. Export Review – including restricted party screening and product or service jurisdiction and classification 5. Quote Package – including original RFP/Q and Basis of Estimate 14
  14. 14. 4.0 Effective Compliance There are two aspects of compliance: 1. Compliance to the review process and your internal procedures 2. Compliance to the contract 15
  15. 15. 4.1 Compliance to the Process 1. Implement a review process – defined process, released procedure 1. Define a document management system 2. Reporting and Metrics for TAT(turn around time) 3. Training 4. Internal audit – could be part of QMS/AS internal audit 16
  16. 16. 4.1.1 Review Process • Hold a Kaizen event • Have a defined process and written procedure 17
  17. 17. 4.1.2 Document Management • Seven documents for every file • Defined naming and filing system • Document retention requirements 18
  18. 18. 4.1.3 Reporting & Metrics • Define metrics • Provide reports and feedback 19
  19. 19. 4.1.4 Training • Provide training as a result of Kaizen and updated process • Train new employees • Refresher training for those not actively involved in the process 20
  20. 20. 4.1.5 Internal Audit • Incorporate into your QMS/AS audit • Have a sister company audit • Have another department audit 21
  21. 21. 4.2 Compliance to the Contract • Whole separate set of issues 22
  22. 22. Review & Connect 3 keys to implementing an efficient contract review process: 1.Identify subject matter experts (SME). 2.Document management – 7 Documents for EVERY File 1.Follow-up – 5 Steps for Effective Compliance 23
  23. 23. Questions Robert E. Jones CFCM, CCCM Contracts Manager, Pole/Zero Corporation rjones@leftbrainpro.com (513) 728-1163 www.linkedin.com/in/rjones330 www.leftbrainpro.com 24

×