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Tim Cummins - Contract and Commercial Management: The Operational Guide

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Tim Cummins Contract and Commercial Management: The Operational Guide
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Contract and Commercial Management: The Operational Guide: summary, description and annotation

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Almost 80% of CEOs say that their organization must get better at managing external relationships. According to The Economist, one of the major reasons why so many relationships end in disappointment is that most organizations are not very good at contracting. This ground-breaking title from leading authority IACCM (International Association for Contract and Commercial Management) represents the collective wisdom and experience of Contract, Legal and Commercial experts from some of the worlds leading companies to define how to partner for performance. This practical guidance is designed to support practitioners through the contract lifecycle and to give both supply and buy perspectives, leading to a more consistent approach and language that supports greater efficiency and effectiveness. Within the five phases described in this book (Initiate, Bid, Development, Negotiate and Manage), readers will find invaluable guidance on the whole lifecycle with insights to finance, law and negotiation, together with dispute resolution, change control and risk management. This title is the official IACCM operational guidance and fully supports and aligns with the course modules for Certification.

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Contract and Commercial Management
The Operational Guide

This book is dedicated to the memory
of Margaret Carey who inspires us all
by planting small seeds of partnerships
and friendships worldwide.

Colophon Title Contract Commercial Management The Operational Guide - photo 1
Colophon

Title:

Contract & Commercial Management The Operational Guide

Lead Authors:

Tim Cummins, Mark David and Katherine Kawamoto

Contributory Authors:

IACCM

Copy Editor:

Jane Chittenden

Publisher:

Van Haren Publishing, Zaltbommel, www.vanharen.net

ISBN Hard copy:

978 90 8753 627 5

ISBN eBook:

978 90 8753 628 2

ISBN ePub:

978 90 8753 972 6

Print:

First edition, first impression, October 2011

First edition, second impression, February 2012

First edition, third impression, January 2014

Design and Layout:

CO2 Premedia bv, Amersfoort NL

Copyright:

Bmanagement 2011

For any further enquiries about Van Haren Publishing, please send an e-mail to: info@vanharen.net

Although this publication has been composed with most care, neither Author nor Editor nor Publisher can accept any liability for damage caused by possible errors and/or incompleteness in this publication. Th is guidance is not intended as a substitute for specifi c professional advice, which should always be sought where required.

No part of this publication may be reproduced in any form by print, photo print, microfi lm or any other means without written permission by the Publisher.

Foreword: By the Board Members of IACCM

As executives and senior managers in some of the worlds major corporations, each of us has had direct oversight for aspects of contract and commercial management within our business. Individually, we have observed the growing role and complexity associated with contracting and this has been reinforced through our experience as elected members of the IACCM Board of Directors.

It is clear that contract management is an increasingly diverse and important organizational competence and this demands greater consistency and efficiency in its management. It also requires more creativity and the tools and techniques that are necessary to improve the quality of judgment and decision-making. Each of us is aware of the difficult balance between control and compliance on the one hand, and agility and flexibility on the other.

While such tools and techniques are fundamental building blocks, the skills, competence and professionalism of the people who work in and around the contract management space are also key. This book represents an important contribution to that heightened competence, offering as it does the first comprehensive view of contract and commercial operations from a cross-industry, bi-partisan, worldwide perspective. It is an ambitious work that seeks to rise to the challenge of managing business relationships in todays complex global markets and equipping the practitioner with a robust body of knowledge that reflects leading practices.

Dave Barton

Director of Contracts

Agilent Technologies

Adrian Furner

Commercial Director

BAE Systems

Diane Homolak

Global Legal Operations Quality and Strategy Manager

Hewlett-Packard

Monu Iyappa

Executive Vice President Legal

GMR Infrastructure Ltd

M.C. McBain

Vice-President Global Alliances & Contract Development

IBM

Steve Murphy

Vice President, Contracts

Raytheon Integrated Defense Systems

Nancy Nelson

Global Contracts Director

CSC

Gianmaria Riccardi

Director, Commercial Business Management Europe

Cisco Systems

Alan Schenk

VP Common Process, Contracting & Compliance

BP

Craig Silliman

Senior Vice President & General Counsel

Verizon

Margaret Smith

Executive Director Contract Management

Accenture

Peter Woon

VP, Procurement and Supply Chain

Marina Bay Sands Pte Ltd

Preface
About this book

All around us is rapid change and growing complexity. The demands on contract negotiation and management have never been greater. There is an urgent need for sustainable practices that support flexibility and dynamic change.

Those who are responsible for contract management must heed the calls for greater collaboration, more innovation, greater readiness to simplify the rules and procedures that will allow management to address turbulent market conditions. At the same time, we must achieve increased rigor, greater compliance and improved controls in our contracts and relationships.

Making sense of these conflicting issues demands a more consistent view of contracts their purpose, their structure and the terms we use within them. It demands the use of common methods and techniques, common terminology and attitudes to risk and opportunity.

To add to these pressures, we are witnessing a steady increase in the influence of emerging markets and newly powerful economies that cause us to question some of the well-established traditions of contract management and the law. This means we must engage in dialog between different business, legal and social cultures to establish clear and mutually acceptable first principles.

It is in this environment that we offer this Operational Guide, to equip those who must manage the complex contracting requirements demanded by todays global markets.

About the authors

The International Association for Contract & Commercial Management (IACCM) is a non-profit organization that owes its origins to the growing complexity of world trade and the consequent need for increased and more consistent skills, knowledge and procedures in the field of contract and commercial management.

The Association was founded in 1999 to fill the gap in international understanding and competence in contracting. Its purpose is to explore and disseminate best practice in the formation and management of trading relationships, as well as equipping business managers and negotiators with the knowledge required to navigate within todays environment.

Through ongoing research, IACCM provides many of todays top corporations and government agencies with the knowledge they require to develop the process and skills that ensure the integrity and success of their contracts and commercial practices. IACCM is unique in representing both buyers and sellers, ensuring a consistent body of knowledge and reducing the risk of unsuccessful outcomes through the promotion of mutual understanding and more collaborative working.

This book is an operational guide to those practices and methods. It has been compiled and reviewed by a wide variety of professionals and academics, representing multiple industries, countries and commercial disciplines. The book is therefore a practical resource for anyone involved in contracts, their negotiation or management.

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