Contract and
Commercial
Management
Program
The Fundamentals
Fundamentals Program
Description
A 2 day program
accompanied by a
practical, readable
supporting text, which
provides the student basic
insights and understanding
of contracting principles
and the impact they have
on both their business and
personal life
Primary:
Account Managers, Bid
Managers, Relationship
Managers, Program/Project
Managers
Secondary: Ancillary
disciplines involved in or
supporting the contracting
process including
functional/technical subject
matter experts, finance
managers, IT managers,
facilities managers and
legal professionals.
IACCM
Contract and Commercial Management Program
The Fundamentals
IACCM is the global forum for innovation in trading relationships and practices.
We develop and communicate leading practices that support economic growth
and organizational success by ensuring commitments are ethical, achievable
and sustainable.
IACCM research has revealed rapid growth in executive management interest
in contract management. Some of that concern is because of today’s tougher
regulatory environment and reputational risk. But much of it is because of the
need to improve bottom-line performance. Contracts represent money.
But of course it is not just about having contracts, it is about insuring we have
the right contracts with the right terms that support and align with our people,
our processes and our systems. It is about not just equipping our contracts
organization with the best tools and practices, but also enabling the all customer
facing team members with the ability to participate effectively in the contracts
process, both before and after contract signature.
To that end, IACCM has developed the Fundamentals of Contract and
Commercial Management Program to complement its renowned Contracts
Professional courses specifically designed for the non-contracts business
professional. The program focuses on delivering contemporary best practices
information which will equip the student to participate effectively in the contract
process and does so in a manner which the student will find interesting and
immediately useful in their personal and professional life.
Learn the Basics Now!
© 2014 IACCM: International Association for Contract and Commercial Management
Course Summary
Syllabus:
The syllabus is the structure for a 2 day course, accompanied by a practical, readable supporting text,
which provides the student basic insights and understanding of contracting principles and the impact they
have on both their business and personal life.
Audience:
Individuals involved in or supporting contracting who want to improve their commercial management
skills; individuals in functions such as project management who need practical training in commercial
management; general audiences wanting to gain a basic understanding of commercial management.
Course Objectives
At the end of this course, students will understand:
• The significance & role of contracts & contracts professionals in the world of business
• The contract management lifecycle & the elements essential to each of its phases
• How to select from a broad range of knowledge, approaches and tools
• Key concepts in contracts & associated legal considerations
• Basic risk assessment techniques
• The principles & process of contract negotiation
• Effective contract delivery and operations post-contract signature
• How to prepare for & take the IACCM Contract & Commercial Management Fundamentals examination.
Outcomes
Participants will be able to:
• Understand and manage discussions about contracts in a commercial context.
• Manage suppliers and relate to customers to achieve a positive and effective working relationship.
• Contribute to pre-contract signature activities to increase the chances of successful contract delivery & outcome.
• Understand how to manage risk and opportunity in contracts.
• Know enough about contract law to avoid basic errors and involve experts as appropriate.
• Be aware of the steps required to support contract implementation.
• Know how to engage in contract change with positive outcomes for both customer and supplier.
Prerequisites
There are no specific certifications or credentials needed to take the exam. Classroom training should be delivered by
an accredited training organization.
Overview
The course provides key commercial contract knowledge structured to reflect a process-based view of contracting with
the following outline:
Module
1
2
3
4
5
6
7
8
Title
Introduction
Essentials of Contract and Commercial Management
Initiate
Bid
Develop 1: Preliminary and Basic Contracts
Develop 2: Characteristics of Different Types of Contract
Negotiate
Manage: 1: Transition & Change 2: Operations
© 2014 IACCM: International Association for Contract and Commercial Management
Details of Program
Module
Objective
Details
1
Introduction
Introduces the topic of contract and
commercial relationships and why the
skill sets associated with this function
are so critical for organizations. It
also outlines the connection between
the course participants’ functions and
the business benefits of effective
Contract Management.
Essentials of Contract &
Commercial Management
Covers the basic understanding of
what a contract is, and the core
principles associated with it: offer,
acceptance and consideration. It
explores the legal basics, pricing,
payment and negotiation. It describes
the five phases of contract
management and explains how the
fundamentals for successful
operation of the contract are laid
down incrementally through the
phases.
The Module will cover the following topics:
Commercial relationships: building a foundation

The relationship continuum

Using contracts to document commercial relationships

Choosing the best tool for the job
2
3
Initiate
This unit outlines the different levels
of commercial relationship, from
commodity through to trusted adviser,
and explains how to understand the
customer’s perspective from a sellside viewpoint.
4
Bid
This Module describes how
customers develop requirements and
highlights the common pitfalls they
face. It goes on to outline the
Request for Information (RFI) and
provides guidance on initial
evaluation of opportunities. The
Module explains the process of
managing bids and proposals from
both a supplier and a buyer’s view.
The Module will cover the following topics:
Essential elements of a Contract

Overview: what is a contract?

Different types of agreement

Other business relationships

Complex and specialized agreements
Beyond the written word

Civil law versus common law

The UN Convention on Contracts for the International Sale of
Goods (CISG)

The Uniform Commercial Code (UCC)

Relevant regional law

Private commercial law
Cost, pricing, and payment

Customer perspective on costs

Basic pricing principles

Legal considerations

Factors that influence pricing

Pricing models/contract types

Estimating and job costing

Payment management

Main types of payment

Consignment sales

Standard Letters of Credit

Bonds
Negotiation principles

Negotiating approaches today

Negotiation styles

Negotiation planning and strategy

Integrating information for results
Overview of the contract management lifecycle

Initiate phase

Bid phase

Develop phase

Negotiate phase

Manage phase
The Module will cover the following topics:
Initiate phase: Requirements

The importance of requirements

Developing effective requirements

What goes wrong

Constructing an RFI or RFP

Supplier perspective
The Module will cover the following topics:
Bid phase: bid and proposal management:

Overview

The RFx documents and the buyer perspective

Bid and proposal management – the seller perspective

Summary
© 2014 IACCM: International Association for Contract and Commercial Management
5
Develop 1: Preliminary
Agreements and the Basic
Elements of Contracts
This Module outlines preliminary
agreements such as Non-Disclosure
Agreements, Memorandum of
Understanding and Letters of Intent.
Key content in this section identifies
the key issues associated with each.
It then describes the essential
components of good contracts.
6
Develop 2: Characteristics of
Different Types of Contract
This section looks at the different
types of contracts available from
simple to complex: it reviews
contracts for goods and services,
licenses and leases, agreements with
agents and distributors and finally
complex agreements. Key content in
this section includes the description
of the commercial contract and the
key issues associated with each
component of the contract. It also
explains the linkage between cost
and risk in contract terms.
7
Negotiate
This Module explains the different
types of negotiation strategy and
negotiating style, how to plan for
negotiations and avoid the common
pitfalls. It includes an assessment of
the terms that are most commonly
negotiated.
8
Manage 1: Transition & Change
This Module provides an overview of
the contract management activities
relating to transition and change. It
explains the process of transition
after contract signature to a new
operational service, focusing on the
role of the contract manager. It also
explains the process of change
control in a contract, which ensures
that proposed contract changes are
formally evaluated and agreed before
implementation.
Manage 2: Operations
This Module provides an overview of
the operational contract management
activities. It focuses on day-to-day
operational activities including using
KPIs, delivery, invoicing,
benchmarking and other regular
management activities.
The Module will cover the following topics:
Develop phase: selecting a contract type

Preliminary agreements

Selling goods and services

Licenses and leases

Other business relationships

Complex and specialized agreements
Develop phase: preliminary agreements

Non-disclosure agreements

Memorandum of Understanding

Letters of Intent
Develop phase: selling goods

Sale of goods only
The Module will cover the following topics:
Develop phase: selling goods and services

Contracts for services

Contracts for the sale of both goods (products) and services
Develop phase: licenses and leases

Licenses

Leases
Develop phase: other business relationships

Working with agents and distributors

Location really matters

Selling with business consortia, joint ventures and alliances

Prime/subcontractor agreements

Implementing alliances through teaming agreements

A second relationship continuum
Develop phase: complex and specialized agreements

IT solutions

Major infrastructure

Outsourcing
The Module will cover the following topics:
Negotiation phase: unplanned negotiation

Why negotiate?

When to negotiate

What to negotiate

Who negotiates?

Where to negotiate

How to negotiate
The Module will cover the following topics:
Manage phase: transition to a new contract

Culture and attitude

Understanding the contract

Communication
Manage phase: managing changes and disputes

The pervasiveness of change

Initiating and documenting change

Contract claims

Contract disputes

The causes of disputes

Resolving common operational disputes

The contract and dispute resolution

Consequences of disputes

Avoiding a dispute

The formal dispute resolution process
Manage phase: managing performance

Key performance indicators

Delivery

Invoicing

Benchmarking pricing

Contract targets and other measurements

Regular management of the contract
© 2014 IACCM: International Association for Contract and Commercial Management
Industry Praise for IACCM’s Guide for Non Practitioners
‘This is a good practical guide of sound commercial principles; a must for anyone working in a contracting relationship!’
Nancy Nelson, Global Contracts Director, CSC
‘Good commercial and contract management is fundamental to the success of businesses and increasingly a source of
innovation. Its reach and impact are wide and touch almost all areas and functions from finance to project
management, and business development to delivery. This book provides a consistent and common framework and
language for all who come into contact or interface with commercial and contract management.’
Adrian Furner, Director & Founding Partner, Kommercialize Limited
‘Offers a broad perspective across the range of commercial and contracting activity so provides a good grounding in
the subject for the business reader; some useful and informative demystifying of some of the legal issues surrounding
the subject.’
Jason Waterman, Senior Procurement Advisor, UK Government
‘I found this guide to be particularly instructive regarding the basics of contracts and contract management, regardless
of function or business. I would highly recommend this book for anyone with customer-facing responsibilities, be they
Sales, Project Management, Proposals, Channel Partners, et al. This is an excellent tutorial for those who require an
overview of contracting essentials.’
Tim MacCarthy, Rockwell Automation
© 2014 IACCM: International Association for Contract and Commercial Management