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18 - CMN - Contract Management and Negotiation Skills

CMN 131 - Outsource Maintenance Contracts

Code Start Date Duration Venue
CMN 131 30 October 2023 5 Days Istanbul Registration Form Link
CMN 131 25 December 2023 5 Days Istanbul Registration Form Link
Please contact us for fees


Course Description

In the competitive environment of today, availability and reliability of assets are more than ever an important issue. A significant trend in maintenance is outsourcing maintenance activities to contractors. Maintenance contracts are being applied as a highly effective way to manage and control the relationship between the service provider and the end-user, both internally and externally. It manages the expectations of both parties, sets out the parameters of responsibility and offers performance indicators.

This highly interactive Maintenance Engineering training seminar on Maintenance Contracting & Outsourcing will ensure that you understand how to decide rationally what maintenance activities to outsource and what's not, how to select the best maintenance contractor and how to evaluate the delivered performance of all parties involved. Participants will understand the different contract types, get the most from your contracts, avoid the potential pitfalls and improve the performance of your assets. Maintenance contracts used in several branches will be discussed. They will have the opportunity to discuss the existing contracts used in your organization. Through a combination of formal lectures and group work, participants will leave the seminar with the tools to improve your contracts and contract management.

Course Overview

  • Understanding Outsourcing considerations
  • Contracting Types, including Service Level Agreements (SLA’s)
  • Key Performance Indicators (KPI’s) to Monitor Performance
  • Developing Contracts – The Contracting Cycle
  • Negotiating Skills
  • Continuous Improvement and Performance Management: How to Evaluate the Performance with All Parties Involved

Who Should Attend?

  • Project managers
  • Senior managers
  • Project executives
  • Board members

Course Details/Schedule

Day 1

  • Outsourcing: Introduction & Definitions
  • Types of Maintenance
  • Asset Management - The Business Impact of Maintenance.
  • Considerations in Outsourcing Maintenance – What to outsource and what not?
  • Risks Involved.
  • Outsourcing Maintenance Activities – case study.

Day 2

  • Maintenance Contracts & Types
  • The Tendering Process – Modern Ways of Tendering.
  • Vendor Management & Choosing the Right Contractor.
  • Costing the Service.
  •  What to outsource and what not outsourcing?
  • Key Performance Indicators (KPI’s)
  • Balanced Score Cards (BSL)
  • Interactive Exercise and Examples.

Day 3

  • How to mitigate Risks in outsourcing maintenance contracts?
  • Developing the Maintenance Contract.
  • Assess, Determine and Specify the Required Service Levels. (SLA)
  • Contract Performance Management.
  • Periodic Evaluation & Improvement
  • Interactive Exercise: Review Some Existing Contracts.

Day 4

  • Grounding and Negotiating the Contract:
  • Expectations about Availability, Reliability and Costs.
  • The Extensive Preventive Maintenance Schedule – “tricks” of Maintenance Contractors.
  • Using the Maintenance Concept to Negotiate More Effectively Lean Maintenance Contracts.
  • Negotiating the Contract – negotiation ploys & tactics
  • Negotiating Tips.
  • Interactive Exercise and Role Play Regarding Negotiating.

Day 5

  • Success factors in management of outsource contracts
  • Problems with outsourcing
  • Techniques & Tools to facilitate the outsource Decision
  • When the right time to start outsourcing?
  • Defining the Requirements and Service Levels.
  • Scope of work, offers, bids and Results