Global Contract Management

Introduction:

Globally, businesses face diverse values, customs, and regulations. They must navigate different governmental expectations and legal jurisdictions. Policies and legal instruments applicable domestically may not be enforceable internationally. Hence, companies are encouraged to adopt a global perspective when interpreting contractual obligations. In addition to domestic tendering and contractual issues, international contract management introduces complexities such as transportation, customs regulations, technical requirements, country-specific taxes, payments, and currency exchange. This course is designed to be practical and solution-oriented, focusing on effective strategies for managing international contracts.

Objectives:

At the end of this International Contract Management course, participants will be able to:

• Protect against risks arising from foreign currency fluctuations.
• Draft and formulate international contracts to safeguard organizational interests.
• Understand global labor rates.
• Develop and source suppliers through global sourcing.
• Identify and procure goods and services globally.
• Manage supplier changes and replacements effectively.
• Evaluate various global sourcing strategies and their advantages and disadvantages.

Training Methodology:

• Case Studies
• Group Discussions
• Simulations
• Interactive Workshops
• Expert Presentations
• Role Playing
• Scenario Analysis
• Problem-Solving Exercises

Course Outline:

Unit 1: Benefits of Global Sourcing

• Reasons for considering outsourcing and global expansion.
• Advantages of global sourcing for market penetration.
• Components of global sourcing and international labor costs.
• Steps for selecting products and services for global sourcing.

Unit 2: Global Sourcing Approaches

• Sales offices and third-party agents in various countries.
• International purchasing offices and direct supplier contacts.
• Defining potential vendors and managing international tenders.

Unit 3: Cost Elements in International Transactions

• Pricing strategies and currency restrictions.
• Duties, freight costs, and INCOTERMS.
• Payment methods and financial considerations.

Unit 4: International Terms and Conditions of Sale

• Key international legal frameworks (UNCITRAL, CISG, ICC).
• Standard terms and conditions, liquidated damages, performance bonds.
• Clauses on modifications, applicable law, suspension, and anti-corruption measures.

Unit 5: Negotiations, Dispute Resolution, and Project Completion

• Contract administration and finalization in an international context.
• Checklists for contract review, export, shipment, and import.
• Warranty provisions and dispute resolution clauses.