Global Standard for Procurement and Supply

Current segment

Level: Professional

Theme: Contracting

Segment 5.6 Contracting for Major Programs and Projects

Segment 5.6 Contracting for Major Programs and Projects

Knowledge: Will know and understand Capabilities: Will be able to

The development and implementation of contracts

Advise and lead on the development and implementation of contracts

The use and application of a range of contracting options for major programmes, projects and complex procurement activity

Evaluate the range of contracting options for major programmes, projects or complex procurement activity, including the situations when each should be used, taking account the full scope of the project and the project outcomes

The use of standard model form contracts for procurement activity

Evaluate the range of standard model form contracts that are available for major programmes and projects. Select the most appropriate for the programme or project

The development of business cases, specifications, contract terms and lotting strategies

Create contracting plans with stakeholders that develop effective business cases, specifications, contract terms and lotting strategies

Key clauses included in contract forms for major programmes and projects

Interpret the key clauses included in contract forms for major programmes and projects to provide advice to colleagues and other stakeholders

The use of optional clauses and schedules 

Evaluate and make any necessary revisions to optional clauses and schedules included in contract forms for major programmes and projects

The use of pricing mechanisms for major programmes and projects, such as:

  • Fixed lump sum
  • Activity schedule
  • Bills of quantity
  • Target costing methods
  • Risk and reward pricing mechanism
  • Cost reimbursable

Evaluate the range of pricing arrangements available for major programmes or projects and recommend the most appropriate mechanism for the specified project, ensuring that the flows of money in the performance of contracts are equitable

The use of partnering relationships in procurement and supply

Encourage stakeholders to form effective on-going relationships with their supply chains

The use of early warning notices and risk reduction meetings in projects and programme management

Work to ensure suppliers perform contractual duties, and encourage good practice in the management of projects and programmes to avoid escalating costs and delays

Mechanisms for managing risks with suppliers in programmes and projects

Create risk registers and other mechanisms for managing risks in programmes and projects, and recommend arrangements for the sharing of risk with the organisation's supply chain to minimise disruption and costs

Timescales and approvals for contracts

Streamline contracting processes that maximise efficiency and effectiveness

Knowledge: Will know and understand

The development and implementation of contracts

Capabilities: Will be able to

Advise and lead on the development and implementation of contracts

Knowledge: Will know and understand

The use and application of a range of contracting options for major programmes, projects and complex procurement activity

Capabilities: Will be able to

Evaluate the range of contracting options for major programmes, projects or complex procurement activity, including the situations when each should be used, taking account the full scope of the project and the project outcomes

Knowledge: Will know and understand

The use of standard model form contracts for procurement activity

Capabilities: Will be able to

Evaluate the range of standard model form contracts that are available for major programmes and projects. Select the most appropriate for the programme or project

Knowledge: Will know and understand

The development of business cases, specifications, contract terms and lotting strategies

Capabilities: Will be able to

Create contracting plans with stakeholders that develop effective business cases, specifications, contract terms and lotting strategies

Knowledge: Will know and understand

Key clauses included in contract forms for major programmes and projects

Capabilities: Will be able to

Interpret the key clauses included in contract forms for major programmes and projects to provide advice to colleagues and other stakeholders

Knowledge: Will know and understand

The use of optional clauses and schedules 

Capabilities: Will be able to

Evaluate and make any necessary revisions to optional clauses and schedules included in contract forms for major programmes and projects

Knowledge: Will know and understand

The use of pricing mechanisms for major programmes and projects, such as:

  • Fixed lump sum
  • Activity schedule
  • Bills of quantity
  • Target costing methods
  • Risk and reward pricing mechanism
  • Cost reimbursable
Capabilities: Will be able to

Evaluate the range of pricing arrangements available for major programmes or projects and recommend the most appropriate mechanism for the specified project, ensuring that the flows of money in the performance of contracts are equitable

Knowledge: Will know and understand

The use of partnering relationships in procurement and supply

Capabilities: Will be able to

Encourage stakeholders to form effective on-going relationships with their supply chains

Knowledge: Will know and understand

The use of early warning notices and risk reduction meetings in projects and programme management

Capabilities: Will be able to

Work to ensure suppliers perform contractual duties, and encourage good practice in the management of projects and programmes to avoid escalating costs and delays

Knowledge: Will know and understand

Mechanisms for managing risks with suppliers in programmes and projects

Capabilities: Will be able to

Create risk registers and other mechanisms for managing risks in programmes and projects, and recommend arrangements for the sharing of risk with the organisation's supply chain to minimise disruption and costs

Knowledge: Will know and understand

Timescales and approvals for contracts

Capabilities: Will be able to

Streamline contracting processes that maximise efficiency and effectiveness

This segment was last updated on: 20th May 2021

The Global Standard for Procurement and Supply structure

Released in 2014 the Standard is a competency framework of procurement and supply skills, knowledge and capabilities that can be used by individuals and organisations to identity training and professional development needs at varying levels of competency.

The Global Standard for Procurement and Supply structure
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