How do you increase the price of the contract, assuming the change order varies the price? Suggest it's via a contract amendment. But, however you do it make sure it's legally enforceable!
from the similar situations, we have used change orders, what matters is here what is the object of change - increase in assigned resources, increase in delivery method,increase in delivery schedule, increase in scope of work. When the impact is on Resource/related service and requirements - we use change forms to update/prolong the current Statement of work. For me by nature Project Managers - they have the same work to follow-up on a Project timeline, budget, Scope - so to be assigned to a new project, it still for me sounds like to stay in the same role, only managing another project (with another timeline, resources, budget constrains).
Jack - a vehicle purchase will usually fall under either a category strategy and/or procurement process, leaving the decision to strategy and process rather than preference. If you are purchasing one vehicle, that acquisition might bring the transaction under the threshold of strategy/process guidelines, but that is rare. Please consider the total cost of ownership (TCO) of the acquisition, rather than simply the purchase price, as vehicles represent significant opportunities for overall cost savings.
• Forsythe and Long Engineering, Inc.
Usually evaluations are broken into two separate categories which are technical and commercial. There are usually team members that are specialized in certain areas that will review the Proposal for different requirements. (ie. the contract specialist may review the commercial portion of the proposal such as pricing and breakdowns. The Engineering team may review the technical side to ensure the Contractor has quoted all items within spec and has also included all items.) Are your RFP's for Lump Sum, T&M or Unit prices?
It is hard to share a general answer for this topic. It depends very much of the type of work, country and sector the customer is operating in. In the Netherlands "Best Value Procurement" is growing at Public companies. In many books are the techniques and processes described. For software development the understanding of function point analysis might help to understand the scoring of building software. And further are most evaluation processes described in the RFP.
I agree with your two respondents. My experience, and we consider this to be a best practice, is to do the technical evaluation first, separate from the commercial. This allows an unbiased review without people thinking about price or the price of their favorite vendor. Technical normally involves components like: HSE/Safety, technical capability, capacity, experience, past performance/recommendations, plant load, and possibly the personnel and their individual experience offered up to the project.
If you use the technical to create a weighting then the commercial evaluation can be weighted by the technical to determine the winner. This means a less technically efficient company would need to have a substantially better price than a more technically efficient one.
Examples of this kind of weighting I believe are listed in the IACCM's large Contracts reference manual.
• Forsythe and Long Engineering, Inc.
I also agree with the responses that have been provided in lieu of my initial response. I think it is a good practice to conduct the technical evaluation before the commercial. However, some of the technical evaluation can be conducted during the prequalification process. This may include capacity, safety, insurance, personnel, etc. If the contractor passes this stage and submits a proposal then the award may only be subject to technical requirements such as submitted equipment manufacturers, product types, and very project specific requirements. The commercial evaluation will remain the same.
Hi - thank you for raising this important point and sorry that you are missing out on active participation. In your user profile, you can actually make use of two email addresses - the primary one (that is used in the login process) and a secondary one, that is used if the primary one has issues. You can change these at any time, from your profile page: www.iaccm.com/members/, but clearly you will need to be able to log on to make the change. If you cannot log on for whatever reason, please contact the membership team (firstname.lastname@example.org) and we will happily make any changes for you, once we have verified your identity.
If you don't have a secondary email saved, perhaps now is the time to think about adding that. If you are currently associated with a Corporate membership and things have changed, you can always elect to leave the corporate membership and become an individual member. You can do that here: www.iaccm.com/members/. That way, you will continue to enjoy all the great benefits of IACCM membership.
I am in the situation where I am in between jobs, having finished in my last role at the end of March. The CoVID situation will most likely delay me getting new employment for some time. During this time I am focusing on catching up with IACCM events such as Webinars, AsktheExpert, etc, but find I am excluded from any Sponsors' webinar as I no longer have a work based email address.
Will this continue throughout the CoVID period? I feel it is a little short sighted of the Sponsors to exclude those not currently in employment from their webinars, it is exactly this time when I will have most opportunity to join and expand my knowledge and understanding of the marketplace.
Hi, Thank you for your response. Great to meet you - virtually that is.
I am very sorry to hear you are experiencing an issue registering for the IACCM sponsored webinars.
We continuously contact sponsors asking them to be sensitive to this issue. However, as the registrations are done on their websites, it is a challenge to get them to change their policies.
In any case, the webinar presentations and recordings are typically posted in the IACCM Member Library within 24 hours of all sponsored webinars, so they are available to you to review at your convenience.
Here is the link to the latest content on our resource library. www.iaccm.com/resources/contract-management-resources/
In the meantime, let us know if you need any additional information.
Jennifer Jarrard MEI SRMP
Director, Corporate Member Operations, IACCM Council and Networks
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God day Sedef - well, again, I hate to see a good question like this sitting there all along unanswered, so here goes my contribution.
Firstly, if you get to create your own KPI's, I think that this is an awesome opportunity for you. It's a great opportunity for you to pick some criteria on which to have your performance judged by.
I think it's an opportunity though for you to think about whether or not you want these KPI's to relate to your performance alone, or contribute to or align directly with organisational performance. This could be a factor of where you feel you are as a team with procurement maturity, as well as your ability to influence the organisation's plans. Let me explain by way of example.
Four years ago, for our team, it was all about how quickly we could turn around tenders, time to contract, and the number of complaints (which thankfully were none) about the conduct of our tenders. So for us then, the KPI's were team focussed and didn't really track well into organisational plans.
Fast forward to the present day, the team has pushed back into the business to be engaging with them at a much earlier stage. The KPI's we are moving to are around developing category plans with the business and presenting them to the senior leadership team, monitoring and reporting on the significant contracts in their portfolio and working with the teams on meaningful social procurement outcomes that are relevant to their categories. As you can see, these are less about the team, and track really well into where we want to be as an organisation.
Oh, and like all KPI's, it perhaps goes without saying, but make sure that they're SMART (Specific, Measurable, Attainable, Relevant, and Time-Bound) or SMARTER (adding Explainable and Relative to the mix).
So Sedef, my advice would be to jump the opportunity to set your KPI's, and make them relevant to where you are and where you want to be. I think you are the best person to work that out, rather than me just telling you what you need based upon your one paragraph question.
Have fun with making them - and it would be great learning for others within the forum for you to tell everyone what you ended up with !
• Ngamuru Advisory
Following on from Darren's excellent points, I wanted to find out how you went? Did you find the missing one? I started my Performance Based Contracting (PBC) journey in 2004 designing, implementing and managing performance measures (not just KPIs!). Over this time I have seen many, many performance measure that can be used depending on what you are trying to achieve. Indeed, over the years we have actually formed the opinion that there are more than simply KPIs, since most humans can only handle 3 - 5. Therefore, having dashboards of 20 it too much information. So while there are a number of websites that can give you a variety of performance measures, can I suggest you have a look at why you want to measure; what is the outcome you are trying to achieve? Is it the standard project ones (scope, schedule and cost), or are there other things such as the health of the relationship, the culture of safety, etc. And if you think you can't measure the last ones, you can! Just takes a bit more work to set-up. So best to work that out first.
To help, as an IACCM Fellow I write on blog where I write about this (www.performancebasedcontracting.com), which sometimes become articles for IACCM (part of the role of an IACCM Fellow). Therefore, I'd suggest you have a look here and see if this helps. There is probably a lot of content (all free!), but hopefully it helps.
Anyway, I hope this helps you on your journey. And don't be afraid to ask for help!
Thanks, Phyllis, I am glad that you found the webinar helpful; it was certainly a great session to moderate, with some really good questions at the end. I agree - we often don't pay enough attention to the learning style and the impact that has on how information is absorbed. Paul Branch
Personally, I would say the 10 are still applicable today (Jan 2020). I also think the point about how fast the world is moving - particularly technology wise - is true and it has only sped up even more in the past 5 years.
Me too. I would be interested to hear what others have found in selection of a CLM.
I am not a buyer of CLM solution but a seller. I work for EY and have developed a easy plug-in and use SharePoint based CLM solution. Would be happy to participate in the RFP/RFI process. My email ID is: Kulbir.firstname.lastname@example.org.
As for my tool the below features are available at extremely reasonable pricing and very easy to use format.
Integration with Clients' system
Repository of Contracts
Templates uploading and downloading
OCR File Scanning
Dashboards and Reports
Alert and Notifications
Multiple Filtering options
Selecting form Templates
Download Reports/Export meta data to excel
Upload templates to a selected workspace
Create new user accounts
Reset user accounts
Edit access to users
create new workspace
upload templates to a master database
Easily Customizable App UI
Contract Clause Library
Intake form that can integrate with single sign on (SSO)
Compliance with other regulations
• Fire and Emergency NZ
Hi Geoff. We found a lot of the systems on the market, whilst all really good, focussed on workflow. Emails and notifications of moments and issues galore. I've always found that you don't need that if you have the right team, this isn't needed. They know what thy have to do, what stage in the process and when. So that for me was a major issue.
The second thing is a lot of them have lots of functionality around the back and forth and negotiation of clauses. I'd suggest again if you have really good templates and good early engagement, you reduce the back and forth required and can get the benefits of quicker turnaround and e-signatures without a bigger system.
I would flag that you should not underestimate the work required to get your current information into the new system. It's probably going to be more than the annual fees to set up. In the RFP / RFI - get them to tell you their plans and costs for getting the records in the system. It's not just the scanning of records, but also the information in the contracts (milestones, conditions) that need to come in.
Finally, I'd really recommend that you bring in as many people as possible into this process, especially in the procurement team. The users and the team are the ones that will have to use this solution going forward and keep your records in that format for all of those wonderful visuals and reports that the new system spits out. I've seen and heard of many instances where the new CLM has failed because the team and users haven't brought into the solution.
We've been lucky with our solution (it's a simple one that we developed in house) because :
(a) it wasn't an all at once deployment. People have had time to think about the system and what it could do
(b) the team have then been able to take the system to an even higher level than anything I had in mind. Templates for contracts, evaluation and issues registers - all really awesome stuff that went way beyond my initial ideas.
I hope this aids your thinking, and if you want to talk further, please message me.
• BDO USA LLP
I saw your post this morning and wanted to reach out about your question. I lead the consulting practice at BDO USA LLP that focuses on precisely the scenario you are asking about. We are solution/platform agnostic and seek to ensure the "right" solution - regardless of vendor - is selected so that something that is too big or too complex isn't inadvertently chosen from the many, many good solutions out there. Feel free to give me a call at 703-770-4453 or email at email@example.com. I'd be happy to share my thoughts with you. Thanks! Tom
• Nimblex by EBMS
Our experience is to stay away from the big overnight system implementation but to partner with a super flexible technology so that you can start small and then incrementally digitise the processes the way you want and your staff would like to work. This is a more incremental way and allow for the necessary change management to run parallel.
Flexibility is the key i.e. shape the software around your processes, framework, desired way of working and policies. Do not try to shape your work procedures to fit a certain software. A good example is getnimblex.com/case-studies/yvw-procurement-and-contract-management/
I understand your requirement. I am a CCMAP, IACCM certified Contract Management professional and I work for the most innovative CLM tool pioneer organization.
Challenges faced by most organisation during the RFI/RFP phase can be understood as per below:
The client wanting the lowest price, the highest quality, access to innovation and new ideas and products, extensive audit rights, and the flexibility to renegotiate to get a better deal. In this kind of environment, it can be challenging to form a close, business partner relationship.
Challenges faced by most organisation during the Implementation/post deployment phase can be understood as per below:
Change of specifications, change of scope, change of marketplace dynamics, change of personnel, minimal joint planning and joint problem solving
The above problems are faced when you do not have an effective CLM management process and an alliance manager.
The major problem is that organisations tend to follow a positioned approach instead of principled approach and do not come up the relationship continuum pyramid.
You may want to contact us to provide you with a best CLM solution that will help you build good Supplier relationship management process and likewise.
Organization - Sirion Labs - www.sirionlabs.com Most Innovative truly digital CLM tool that provides insight driven granular Contract Authoring, Managing Commercial and legal aspects of the obligations, Provides trends powered with BI, Assists in Change variations, Helps develop a Price Book, Provides Financial Management support, Assures Efficiency and never ends