This seminar will deal with the typical procurement problems and solutions related to capital intensive industries. It will address the entire life-cycle, from inception to disposal.

The contents of this course will be useful when considering new projects as well as evaluating a current position. It will provide delegates with the insights required to make good procurement decisions or to realign a current situation, as the effects thereof will be felt for a long time to come.

To enable all personnel involved in procurement, including engineering, maintenance and finance to take a holistic view of the procurement process and to recognise the potential value that world-class procurement can deliver to the organisation. It will also enable procurement professionals to make meaningful contributions throughout the entire life-cycle of the project.

To achieve the maximum benefit from this course, it is advisable to send a multi-disciplinary team to attend. Often, delegates attend a course but there is no or very little return on investment. By having a multi-disciplinary team at the course, all delegates will be able to participate and understand the reasoning behind the approach, thereby unlocking a tremendous amount of value.

Outline

Day 1: Setting the goals of Procurement and the role during the lifecycle of the project

What are the goals of Procurement?

Designing the Procurement system

Implementing an objective KPI system for Procurement

Building and staffing of the Procurement Process

Shortcomings of the financial system

Overview of the project life cycle

• Preloading phase
• Execution
• Operate, maintain and improve
• Close-out and disposal

Day 2: Procurement’s role during the Preloading Phase

Meeting shareholder and market expectations

Justification for capital expenditure

Various acquisitioning process options

• Ownership options
• Crafting a tender strategy
• Implementing a successful contract strategy

Common project management pitfalls

How to ensure projects are delivered:

• On time
• Within budget
• Within the agreed upon specification

Day 3: Procurement’s role during the Design Phase

Designing the supply base for supplies and services

• Strategic
• Technical
• Projects
• Consumables and general supplies

Establishing specifications

• Engaging end-users and suppliers
• Establishing and managing the base-line

Matching end-user requirements with the appropriate supplier capabilities

• Involving the end-user in determining the required technologies
• Compiling supplier selection criteria
• Forming commodity teams to evaluate and provide supply solutions
• Developing an approved supplier list based on the required technologies

Day 4: Tenders and Contract Management & Administration

Tendering

• The purpose of tendering
• Developing the Scope of Work
• Tender administration
• Tender bonds
• Supplier evaluation techniques
• Contract negotiations
• Contract award

Contracting

• Objectives of the Contract
• Basic contract types
• General provisions
  • The employer
  • The engineer
  • The contractor
  • Nominated subcontractors
  • Staff and labour
  • Plant, materials and workmanship
  • Commencement, delays and suspension
  • Tests on completion
  • Employer’s taking over
  • Defects and liability
  • Measurement and evaluation
  • Variations and adjustments
  • Contract price and payments
  • Termination by employer
  • Termination by contractor
  • Risk and responsibility
  • Limitations of liability

• Insurance
• Force majeure
• Liquidated damages
• Claims, disputes and arbitration

• Using industry standard contracts

Day 5: Operate, Maintain and Improve

Using the ERP system to its maximum advantage

Dealing with shutdowns and breakdowns

Rethinking the spare parts problem

Automating the replenishment process

Going towards Lean procurement

Close-out and disposal

RECTUS attendance certificate will be issued to all attendees completing minimum of 80% of the total course duration