Commercial Project Management Program | Commercial Officers Group

Summary. Global commercial research has demonstrated that 70% of projects fail to some extent and that in the instances of failure, 70% of the failure is attributed to weakness on commercial management. The net effect is that in 49% of projects there is an underlying challenge which undercuts project success. The failure is manifested in financial deficits, delays, defects and disputes. This represents significant profit loss, as well as increased project risk for all firms involved in the commercial project.

The Offering. This global challenge must be addressed by project managers and contract managers alike. In order to equip these professionals with the requisite body of knowledge, skills and tools, an integrated and cohesive program is needed which draws from both project management and commercial contracting disciplines. By combining the perspectives commercial project management professionals Commercial Officers Group has developed a synergistic solution. Successful completion of the Program will lead to formal certification as a certified Commercial Project Management (CPM) practitioner.

The Commercial Project Management Year-long On-Line Program. The following program outlines COG’s Commercial Project Management Body of Knowledge (CMP-BoK).

Join Anytime! Due to the live sessions being recorded and archived, you can join at any time during the year and not miss any content.

Week of January 2 – What is a Project Plan? (Take the related quiz and start accruing certification points)

A formal, approved document which:
Guides project execution
Guides project control
Outlines who is responsible and/or accountable
Manages risk and optimizes benefits
Requires flexibility

Project Plans – Why do we need them? (Take the related quiz and start accruing certification points)

To ensure our projects are successful
To maximize value
To minimize risk
To comply with time, money and quality requirements
To answer the why, what, who and when questions
To aid compliance, governance and knowledge management

Week of January 9 – What is a Contract? (Take the related quiz and start accruing certification points)

A formal, executed document which:
Guides transaction/relationship execution
Guides transaction/relationship control
Outlines who is responsible and/or accountable
Manages risk and optimizes benefits
Requires flexibility

Contracts – Why do we need them? (Take the related quiz and start accruing certification points)

To ensure our transaction/relationships are successful
To maximize value
To minimize risk
To comply with time, money and quality requirements
To answer the why, what, who and when questions
To aid compliance, governance and knowledge management

Week of January 16 – Traditional Mainstream Projects (Take the related quiz and start accruing certification points)

Require planning
Require strong leadership
Must integrate a team from multiple disciplines
Face changing and flexible internal requirements
Endure VUCA (Volatility, Uncertainty, Complexity, Ambiguity)
Depend on effective communications and contracts

Week of January 23 – Major Infrastructure Projects (Take the related quiz and start accruing certification points)

Political factors
Feasibility and environmental impact concerns
Funding uncertainty
Transparency with public/press
Process and policy compliance
Contracting structure is highly complex and complicated

Week of January 30 – Public Private Partnerships (Take the related quiz and start accruing certification points)

Extremely long term, e.g., thirty years, projects
Financing models and contracts
Optimized risk allocation
Service delivery models
Collaboration has a greater opportunity to occur
Unique contract types, clauses, SLA’s, KPI’s

Week of February 6 – Outsourcing Deals (Take the related quiz and start accruing certification points)

Resource or results?
SOW’s and SLA’s
Key performance indicators
HR and employment impact
Sourcing, transition/implementation and fulfillment phases
Exit plan

Week of February 13 – Joint Ventures, Alliances and Teaming Relationships (Take the related quiz and start accruing certification points)

Joint Venture contracts
Joint Venture project aspects
Alliance contracts
Alliance project aspects
Teaming contracts
Teaming project aspects

Week of February 20 – Relational Contracting (Take the related quiz and start accruing certification points)

Significant benefits
Focus on mutual objectives
The key tenets
The element of trust
Relational charter
Integration of parties via contracting and project management

Week of February 27 – Performance-Based Contracting (Take the related quiz and start accruing certification points)

Business Case or SOW reviews risks, benefits and impact
Outcomes – the desired results or final deliverable
Measure defined performance measures against the outcome
Payment is based on a set of payment curves
Incentives encourage the positive and discourage the negative
Project management aspects

Week of March 6 – Outcome-Based Contracting (Take the related quiz and start accruing certification points)

Drilling a hole – what is the outcome?
Who is best positioned to achieve the outcome?
Who decides how the hole is drilled?
Who owns the risk?
Who receives the reward?
Project management aspects

Week of March 13 – Timing (Take the related quiz and start accruing certification points)

Define tasks and activities in contract
Sequence the contracted activities
Estimate the activity resources – estimate versus commit
Estimate the activity duration – estimate versus commit
Develop the contracted schedule
Contract manage / project manage the schedule

Week of March 20 – Money (Take the related quiz and start accruing certification points)

Forecast project costs – hard and soft costs
Determine budget
Explore time and materials, unit price, fixed fee, other models
Define remuneration in contract
Monitor and manage expenditures
Results versus resources – who absorbs cost overruns?

Week of March 27 – Quality and Specifications (Take the related quiz and start accruing certification points)

Undertaking a process approach
Engaging the stakeholders to define specifications
Driving mutual benefits through relationship management
Driving mutual benefits through contract management
Measuring performance through facts and data
Striving for continuous improvement

Week of April 3 – Roles, Responsibilities and RACI (Take the related quiz and start accruing certification points)

The value of RACI
Responsibility and accountability as a contractual liability
Supplier-focused RACI charts
Customer-focused RACI charts
Blended RACI charts
Integrating the RACI chart as a contractual contract

Week of April 10 – RFI’s and EOI’s (Take the related quiz and start accruing certification points)

The collection of information and interest
Assists with make/buy decision
Solicit data on project management capability/competency
Integrating the data into the project plan
Integrating the data into the eventual contract
How quickly does the data turn stale?

Week of April 17 – RFP’s, RFQ’s and other RFx’s (Take the related quiz and start accruing certification points)

The collection of proposals and pricing
Differences between the documents
Is project management part of the proposed support?
Integrating the proposed approach into the project plan
Integrating the proposed approach into the eventual contract
How long is the proposal/quote valid?

Week of April 24 – Due Diligence Practices (Take the related quiz and start accruing certification points)

Written materials
Interviews via phone and email
Physical visits
References
Finding third parties who are not being
Asking how well they manage projects

Week of May 1 – Negotiating the Project Support (Take the related quiz and start accruing certification points)

What is needed?
What is available?
Where are the gaps?
What is the best way to fill the gaps?
Agreeing on how to fill the gaps
Implementing the project support to fill the gaps

Week of May 8 – Initial Implementation Steps (Take the related quiz and start accruing certification points)

Finalize team
Conduct kick-off meeting
Identify key action items
Prioritize action items
Complete the RACI
Integrate into contract as appropriate

Week of May 15 – Engineering and Construction (Take the related quiz and start accruing certification points)

Make/buy considerations
Key value points
Key project/relationship risks
Contract elements
Key Performance Indicators
Measures and metrics of success

Week of May 22 – Facility Management (Take the related quiz and start accruing certification points)

Make/buy considerations
Key value points
Key project/relationship risks
Contract elements
Key Performance Indicators
Measures and metrics of success

Week of May 29 – IT and Technology (Take the related quiz and start accruing certification points)

Make/buy considerations
Key value points
Key project/relationship risks
Contract elements
Key Performance Indicators
Measures and metrics of success

Week of June 5 – Consulting Services (Take the related quiz and start accruing certification points)

Make/buy considerations
Key value points
Key project/relationship risks
Contract elements
Key Performance Indicators
Measures and metrics of success

Week of June 12 – Business Process Outsourcing (Take the related quiz and start accruing certification points)

Make/buy considerations
Key value points
Key project/relationship risks
Contract elements
Key Performance Indicators
Measures and metrics of success

Week of June 19 – Project Management Services (Take the related quiz and start accruing certification points)

Make/buy considerations
Key value points
Key project/relationship risks
Contract elements
Key Performance Indicators
Measures and metrics of success

Week of June 26 – Warranties and Representations (Take the related quiz and start accruing certification points)

Express warranties
Implied warranties
Warranties versus representations
Guarantees
Disclaimers
The impact of indemnification on the project

Week of July 3 – Indemnities (Take the related quiz and start accruing certification points)

What is indemnification?
Types of indemnification
Hold harmless
The ability to indemnify
Backed by insurance
The impact of indemnification on the project

Week of July 10 – Remedies and Liquidated Damages (Take the related quiz and start accruing certification points)

Why use remedies?
Financial versus non-financial
Penalties versus liquidated damages
The pre-requisites to liquidated damages
The impact of remedies on prices
The impact of remedies on the project

Week of July 17 – Standards of Performance (Take the related quiz and start accruing certification points)

Reasonable efforts
Best efforts
Empirical efforts
What if the standard is not met?
The impact of the standard on prices
The impact of the standard on the project

Week of July 24 – Intellectual Property and Works for Hire (Take the related quiz and start accruing certification points)

Types of intellectual property and works for hire
Short-term considerations
Long-term considerations
Key value points
Key project/relationship risks
Contract elements

Week of July 31 – Payment (Take the related quiz and start accruing certification points)

Single payment on a stated date
Multiple payments at milestones
Tactical and operational aspects
Offsets and deductions
Key project/relationship considerations
Contract elements

Week of August 7 – Scopes of Work and Service Level Agreements (Take the related quiz and start accruing certification points)

The SOW versus the SLA
SOW’s in results and resources contracts
Balancing agility and flexibility against reliability
The impact on pricing
Integrating with the contract
Integrating with the project

Week of August 14 – Drafting and Alignment (Take the related quiz and start accruing certification points)

Fair contracts are equally acceptable
Good contracts are clear
Tips for clarity
Visualization
Impact of “FOB Ships Flange”
Impact on the overall project

Week of August 21 – Measuring and Motivating (Take the related quiz and start accruing certification points)

Scorecards and scorekeepers
Individual recognition and reward
Team/enterprise recognition and reward
Ensuring objectivity
Impact on the contract
Impact on the project

Week of August 28 – SMART and SMARTER (Take the related quiz and start accruing certification points)

Specific, Measurable, Attainable, Relevant, Time-bound
Evaluated
Recognized/Rewarded/Revisited
Impact on the contract
Impact on the project
Impact on the individual and team

Week of September 4 – Traditional Contract Models (Take the related quiz and start accruing certification points)

Purchase Orders, Service Orders, Master Agreements
The contract cube
Licenses
Leases and Rental Agreements
Confidentiality Agreements and Memos of Understanding
Contracts need to be fit for purpose

Week of September 11 – FIDIC (Take the related quiz and start accruing certification points)

A global set of templates for an array of contracting scenarios
Highly relevant to Engineering and Construction
Broadly used and viewed as a global standard
The “but, we are different” challenge
The “but, everyone agrees to it” challenge
Impact on the overall project

Week of September 18 – NEC and NEC3 (Take the related quiz and start accruing certification points)

New Engineering Contract, viewed as a collaborative option
NEC4 reflects project management best practices
Emphasizes flexibility, clarity and ease use
Stimulates relationship management between the parties
Guidance notes and flowcharts are available
Impact on the overall project

Week of September 25 – Lump Sum (Take the related quiz and start accruing certification points)

Involves a total fixed price
Can include incentives or liquidated damages
Preferred when scope is clear and schedule is agreed
Useful when risk is transferred to the contractor and/or the client wants to avoid change orders
Contractor must integrate the cost of carrying added risk
Impact on the overall project

Week of October 2 – Time and Materials Reimbursable (Take the related quiz and start accruing certification points)

Involves a price based upon hourly/daily rate, and certain additional expenses
Preferred when scope is unclear and schedule is not agreed
Used when risk is to be retained by the customer
Relevant if there is a cap to the amount or project duration
Common with small projects, or if forecast of time is viable
Impact on the overall project

Week of October 9 – Target Price / Target Cost (Take the related quiz and start accruing certification points)

Solid adoption in some markets, e.g., 15% of construction projects in Japan
Can improve project performance with cost reduction of 15%
Final project cost is a design parameter, like capacity and aesthetics
The project team should develop the target cost at the outset
The cost can increase but team must commit to decrease
Impact on the overall project

Week of October 16 – Guaranteed Maximum Price (Take the related quiz and start accruing certification points)

A guaranteed maximum price, with not-to-exceed price, pays the contractor for actual costs plus a fixed fee, subject to a ceiling
Contractor bears cost overrun risk, unless due to a change order
Savings from cost underruns are given to the client
Differs from a fixed-price contract where savings are typically retained by the contractor
Some contractors avoid, as every hour beyond the maximum erodes their margin
Impact on the overall project

Week of October 23 – Incentives and Retention (Take the related quiz and start accruing certification points)

Can incentives eventually become disincentives?
Financial versus non-financial incentives
Retention without contractual foundation
Impact on the contract
Impact on the project
Impact on the individual and team

Week of October 30 – Tax Implications (Take the related quiz and start accruing certification points)

Strategy allows mitigation in most instances
Jurisdictions, goods/services, timing are all factors
Does tax strategy ever overshadow pragmatism?
Consider taxes of the whole versus taxes on the pieces
Impact on the contract
Impact on the project

Week of November 6 – Project Risks (Take the related quiz and start accruing certification points)

Scope risk
Schedule risk
Resource risk
Technology risk
Project reputation risk is emerging as a factor, e.g., “Big Dig”
Impact on the contract

Week of November 13 – Party Risks – from Financial to Reputation (Take the related quiz and start accruing certification points)

Financial stability
Deficient talent and poor management
Sub-standard tools and processes
Reputation
Impact on the contract
Impact on the project

Week of November 20 – External and Market Risks (Take the related quiz and start accruing certification points)

Fiscal, currency, economic risk
Political risk, social risk
Environmental damage risk
Force majeure risk
Impact on the contract
Impact on the project

Week of November 27 – Risk Allocation Techniques (Take the related quiz and start accruing certification points)

Limitation of liability
Warranties and indemnification
Insurance
Shared risk registers
Impact on the contract
Impact on the project

Risk Mitigation and Prevention (Take the related quiz and start accruing certification points)

Parallel to Total Quality Management and zero defects?
Mitigating the probability and the impact
Who is best positioned to mitigate/prevent the risk?
Measuring value of the non-event
Impact on the contract
Impact on the project

Week of December 4 – Risk Registers, Gantt Charts and other Tools (Take the related quiz and start accruing certification points)

Risk Registers and Gantt Charts
Project Plans
Shared folders
Dashboards
Software
Integrating the project tools into the contract and relationship

Week of December 11 – Communication Management (Take the related quiz and start accruing certification points)

Communication strategies
Communication tactics
The four M’s – Message, Meaningful, Medium, Messenger
The communication rainbow
Impact on the contract
Impact on the project

Change Management (Take the related quiz and start accruing certification points)

Change management strategies
Change management tactics
Engage, engage, engage at all levels
Practice what you preach
Impact on the contract
Impact on the project

Week of December 18 – Flexibility and Agile in a VUCA World (Take the related quiz and start accruing certification points)

The need to be flexible and agile
The need for governance and compliance
Balancing the two competing interests
Aligning approaches between the commercial partners
Impact on the contract
Impact on the project

Week of December 25 – Strategic Factors (Take the related quiz and start accruing certification points)

Solidifying the enterprise in a de-verticalized economy
Maximizing value for money
Managing risk
Fostering innovation
Becoming the commercial partner of choice
Contracting as a strategic competitive differentiator

Your Investment. Commercial Officers Group has developed a low-cost program, requiring participants to invest up to US$360 and 50 hours of learning time throughout the year. We are also able to issue certificates of participation for those learners who need to satisfy continuing education credit hours for their existing certifications with third-party associations and organizations.