Commercial Project Management Program

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 7 – 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 14 – 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 21 – 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 28 – 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 February 4 – 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 11 – 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 18 – 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 25 – 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 March 4 – 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 11 – 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 18 – 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 25 – 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 April 1 – 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 8 – 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 15 – 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 22 – 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 29 – 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 6 – 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 13 – 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 20 – 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 27 – 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 June 3 – 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 10 – 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 17 – 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 24 – 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 July 1 – 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 8 – 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 15 – 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 22 – 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 29 – 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 August 5 – 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 12 – 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 19 – 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 26 – 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 September 2 – 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 9 – 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 16 – 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 23 – 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 30 – 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 7 – 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 14 – 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 21 – 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 28 – 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 November 4 – 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 11 – 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 18 – 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 25 – 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 December 2 – 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 9 – 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 16 – 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 23 – 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 30 – 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$500 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.