• To enable all personnel involved in procurement, including engineering, maintenance, and finance to take a holistic view of the procurement process and to recognize the potential value that world-class procurement can deliver to the organization. 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.

• 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.

Day 1: Setting the goals of Procurement and the role during the life cycle 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 reloading 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 baseline
•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 labor
•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