Summary Fundamentals of Contract and Commercial Management

ISBN-10 9087537131 ISBN-13 9789087537135
319 Flashcards & Notes
2 Students
  • This summary

  • +380.000 other summaries

  • A unique study tool

  • A rehearsal system for this summary

  • Studycoaching with videos

Remember faster, study better. Scientifically proven.

This is the summary of the book "Fundamentals of Contract and Commercial Management". The author(s) of the book is/are International Association for Contract and Commercial Management. The ISBN of the book is 9789087537135 or 9087537131. This summary is written by students who study efficient with the Study Tool of Study Smart With Chris.

PREMIUM summaries are quality controlled, selected summaries prepared for you to help you achieve your study goals faster!

Summary - Fundamentals of Contract and Commercial Management

  • 1.1 The relationship continuum

  • What are suppliers of a commodity?
    • Product is viewed exactly the same as several other produces (same specifications, grade and quality)
    • Price and availability are the traditional differentiating factors 
    • Examples are paper goods, heating oil, hardware  
  • What are Suppliers of functioning equipment/systems?
    • Meets the customer's minimum standards. 
    • Include suppliers of computer servers, large-scale copiers, or corporate vehicles. 
  • What are Value-added products/systems and services?
    • Viewed as a reliable and value-added supplier of products and services. 
    • Contractual arrangements are fulfilled on time
    • products are provided conveniently
    • additional services may be provided such as training) technical or financing support
    • Price remains important, but may not be the main criterion. 
    • customer becomes less likely to shop around competitors and the cost of switching may be high. 
    • include suppliers of integrated technology, engineering or construction service 
  • What are Consultant/critical business advisor?
    • Based on providing value-added products and systems and extra service
    • Helping the customer to deal better with some of its important business issues.
    • Understanding the customers business situation and objectives, by generating workable ideas for solving problems, advantage of opportunities, jointly planning with the customer, being sensitive to the customer's organzational issues 
  • What is a transactional buyer
    • easily switch all parts of its purchasing from one supplier to another. 
    • low internal costs of switching between suppliers. 
    • easy for a new supplier penetrate the customer and harder for an incumbent to defend. 
    • Price, features, support, and delivery intervals are important cU criteria. 
    • Timeframes between purchasing decisions are usually short
    • Maximize their negotiating power 
    • Comparisons between suppliers is easy
    • buyers try to commoditize every purchas
  • What is a relationship buyer?
    • customer faces high costs of switching suppliers and changes suppliers
    • Changes require substantial investment
    • The perceived risk of changing is high due to the critical nature of the product 
    • Difficult to penetrate
  • Chart of how business relationships are changing
    Emerging needs of success
  • 1.2 contracts to document commercial relationships

  • Which are agreements requiring contractual arrangements?
    • Teaming and partnering agreements 
    • Franchises, distribution agreements 
    • Agency and representative agreements 
    • License and right to use agreements 
    • General sales agreements 
    • Service agreements 
    • Outsourcing agreements 
    • Engineer, build and install agreements 
    • Professional consulting agreements 
    • Standard purchase orders 
  • Why is the importance of an agreement not reduced due to the fast moving business environment
    All of these types of business arrangements require specific understanding of the roles and responsibilities and the expectations from each party.
    The extent of change and the need for speed increase the importance of a foundational agreement that accurately records the underlying business objectives and associated commitments.
  • What are benefits of effective contractmanagement?
    • Improved quality of service and customer focus 
    • Greater value for money and cost control 
    • Reduced crisis management 
    • Decreased level of risk 
    • Effective implementation in relation to changes or development in the market 
    • Continued improvement through incentive based contracting and risk sharing 
    • Early identification and resolution of poor contract performance and associated problems and disputes 
    • Controls over performance, costs and standards 
    • Identification of things that worked well and not so well to inform and benefit future contracts 
  • 1.3 Choosing the best tool for the job

  • Why is involvement from the business important when creating a contract?
    The only way contract can effectively represent and support the desired relationship is if it is created with input from the business people involved. 
    The input from business professionals becomes critical and is often the difference between success and failure.   
    inaccurate or incomplete requirements and scope are the most frequent sources of contracts failing.
  • On which three needs shoulds customers focus according to sellers?
    • Customers want to narrow their focus to the few things they do best and outsource the rest without the added overhead costs of supervising their suppliers. 
    • Customers want their sellers to know their business well enough to create products and services they wouldn't have been able to design or create  themselves
    • Customers want evidence that their supplier has added value in excess of price. 
  • Factors affecting suitability of partnering relationship
    Factors affecting suitability of partnering relationship
Read the full summary
This summary. +380.000 other summaries. A unique study tool. A rehearsal system for this summary. Studycoaching with videos.

Latest added flashcards

How wil data become useful business information?
Data is organized into information, and then information is put into context to become knowledge. This creative layering of data points into useful business information is in many ways the central theme of commercial management.
Questions to ask about change control and dispute resolution?
  • Is this change the result of an error or omission in the original contract? 
  • Is the change going to increase or decrease the price of the contract? 
  • Is the program duration changed? 
  • Will the quality of the project deliverable be affected? 
  • Is the service level changed? 
  • Is the scope of work increased or decreased? 
  • Who needs to initiate contract change? 
  • Who needs to approve a change? 
  • What is the change control procedure? 
  • Does the process use the available technology? 
  • Is the change control form easy to use?
  • Is there a history of claims with this trading partner?
  • Is there a dispute process specified in the contract? 
  • How can I reduce the chance of a claim or dispute? 
How can litigation be described?
parries use a court of competent jurisdiction the evidence in an adversarial manner in accordance with the doctrine precedent and the rules of natural justice, to hand down a final and binding determination, notwithstanding any rights to appeal.
How can arbitration be described?
parties use a third party neutral arbitrator or team of arbitrators to hear the positions in an agreed forum, such that an award determined by the arbitrator after reasoned deliberation in accordance with the common law and the rules of natural justice.
Depending on the terms of the contract and the applicable legal system the arbitral decision may be final and binding or subject to possible subsequent litigation.
How can mediation be described?
parries use a third party neutral mediator to guide them through a structured process to determine the most sustainable outcome
How can negotiation be described?
Parties participate in a negotiation to determine the root cause of the issues and the losses involved to decide a sustainable outcome based on the interests of both parties.
Which steps are recognized within a dispute proces?
Negotiation, mediation Arbitration and litigation
What provides the best opportunity for a cost effective solution?
Resolving issues at the operational level
What is recommended for ongoing contracts?
To from time to time undertake a risks audit, reviewing the contracts and projects that are ongoing to ensure that lessons have been learned from past mistakes.
What is the best way to avoid disputes?
define the project well at the outset, develop an appropriate contract, and then manage those contracts and projects effectively.