This document discusses contract management principles and practices. It defines a contract as a voluntary and legally binding agreement between two or more parties. Contract management involves creating, executing, and analyzing contracts to maximize performance while reducing risk. It also includes negotiating terms, ensuring compliance, and documenting changes. The document outlines the key elements of a contract as well as common contract types like fixed price, cost reimbursable, and time and material. It also describes the major phases of contract preparation, award, and administration. Tips provided for effective contract management include reading contracts thoroughly, establishing monitoring protocols, managing issues and variations, and documenting lessons learned.

1. Contract Management, Principles &
Practices
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2. Defining Contract
 A contract is a voluntary arrangement between two or
more parties that is enforceable by law as a binding legal
agreement.
 A contract arises when the parties agree that there is an
agreement. Formation of a contract generally requires an offer,
acceptance, consideration, and a mutual intent to be bound.
 Contract management is the process of managing contract
creation, execution and analysis to maximize operational and
financial performance at an organization, all while reducing
financial risk.
 Contract management is the management of contracts made
with customers, vendors, partners, or employees. Contract
management includes negotiating the terms and conditions in
contracts and ensuring compliance with the terms and
conditions, as well as documenting and agreeing on any
changes or amendments that may arise during its
implementation or execution.
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3. Elements of Contract
An agreement Between competent
parties
Based on genuine
assent of the parties
Supported by
consideration
Made for a lawful
objectives
In the form required
by law, If any3 Pritesh Gharat

4. Contract Types
Fixed Price
Cost
Reimbursable
Time & Material
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5. Contract Framework
Preparation Evolution Award Administration
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6. Contract Preparation
1. Identify need
2. Develop
Business case &
Market research
3. Develop
acquisition plan
4. Evolution of
resources
5. Contracting
plan
6. Scope of
work
7. Pre-
qualification
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7. Poll: Problems in Contract
Management
 What do you think number one reasons for challenges
we face in managing contracts in the Middle East?
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8. Scope of work
 Documents that describe goods & services
required in sufficient details so as to provide
potential contractors with complete
understanding.
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9. Elements of Scope of work
Objective
Description of
work required
Performance
standard
Reporting
requirements
Staffing
requirements
Resources to
be provided
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10. Evaluation
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11. Award Phase
 Negotiate?
 Pre-award meeting
 Documentation
 Contract award & finalization
 Commencement order
 Approval for materials, equipments & HSE
procedures
 Approval for monitoring procedures
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12. Contract Administration
 Process of ensuring that contractors
performance meets contractual requirement
Compliance
Day to day
administration
Provide notices
on time
Obtain
authorization &
approvals
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13. Contract Administration includes-
Mobilization Communication
Schedule & cost
management
Variation order Claims Extension
Dispute
resolution
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14. Contract Management Tips
Read, understand & analyze your
contract
Established monitoring protocol
Documentation
Manage issues & variations
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15. CM Best Practices
Standardize your process
Communicate effectively &
appropriately
Document lessons learned
Create online repository for contract &
commonly used terms
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16. Thank You…
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