Global Standard for Procurement and Supply

Current segment

Level: Managerial

Theme: Contracting

Segment 5.5 Managing Contractual Risks

Segment 5.5 Managing Contractual Risks

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

Legal issues relating to the formation of contracts with customers or suppliers, such as;

  • Offers
  • Counter offers
  • Acceptance
  • Precedence of documents

Analyse the legal and commercial implications relating to the formation of contracts and explain these to colleagues and other internal stakeholders

The main express terms that are commonly applied in contracts for the supply of goods or services, such as:

  • Indemnities and liabilities
  • Sub-contracting and assignment
  • Insurances
  • Guarantees
  • Liquidated damages
  • Payment
  • Delivery and completion

Interpret and revise key contract terms that are included in contracts

The main remedies for the default or breach of contract

Review contracts and recommend appropriate action to be taken in the event of default or breach of contract, including sub-contracting work without agreement

The main provisions that cover variations, claims or compensation events

Evaluate and recommend appropriate action to be taken to resolve variations, claims or compensation events

The main methods for dispute resolution including negotiation, alternative dispute resolution through mediation, conciliation and expert determination, adjudication, arbitration and litigation

Evaluate and recommend appropriate methods to resolve disputes. Take action to resolve disputes

Flow-down arrangements in supply chains that affect contracts

Apply relevant flow-down requirements in the supply chain

The use of key milestones in contract management and project risk management

Establish and review key milestones and implement appropriate risk management actions

The impact of supply chain risk on organisation reputation

Develop and manage approaches to mitigate the impact of supply chain risk on organisational reputation, escalating significant issues as appropriate

Knowledge: Will know and understand

Legal issues relating to the formation of contracts with customers or suppliers, such as;

  • Offers
  • Counter offers
  • Acceptance
  • Precedence of documents
Capabilities: Will be able to

Analyse the legal and commercial implications relating to the formation of contracts and explain these to colleagues and other internal stakeholders

Knowledge: Will know and understand

The main express terms that are commonly applied in contracts for the supply of goods or services, such as:

  • Indemnities and liabilities
  • Sub-contracting and assignment
  • Insurances
  • Guarantees
  • Liquidated damages
  • Payment
  • Delivery and completion
Capabilities: Will be able to

Interpret and revise key contract terms that are included in contracts

Knowledge: Will know and understand

The main remedies for the default or breach of contract

Capabilities: Will be able to

Review contracts and recommend appropriate action to be taken in the event of default or breach of contract, including sub-contracting work without agreement

Knowledge: Will know and understand

The main provisions that cover variations, claims or compensation events

Capabilities: Will be able to

Evaluate and recommend appropriate action to be taken to resolve variations, claims or compensation events

Knowledge: Will know and understand

The main methods for dispute resolution including negotiation, alternative dispute resolution through mediation, conciliation and expert determination, adjudication, arbitration and litigation

Capabilities: Will be able to

Evaluate and recommend appropriate methods to resolve disputes. Take action to resolve disputes

Knowledge: Will know and understand

Flow-down arrangements in supply chains that affect contracts

Capabilities: Will be able to

Apply relevant flow-down requirements in the supply chain

Knowledge: Will know and understand

The use of key milestones in contract management and project risk management

Capabilities: Will be able to

Establish and review key milestones and implement appropriate risk management actions

Knowledge: Will know and understand

The impact of supply chain risk on organisation reputation

Capabilities: Will be able to

Develop and manage approaches to mitigate the impact of supply chain risk on organisational reputation, escalating significant issues as appropriate

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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