CIPS Level 4 Module 3 (Commercial Contracting 6Cr)

1.1 Analyse the documentation that can comprise a commercial agreement for the supply of goods or services

1.1.1 Invitation to tender or request for quotation

1.1.2 Specifications

1.1.3 Key performance indicators (KPIs)

1.1.4 Contract documentation

1.1.5 Pricing and other schedules (such as for health and safety records, details of supplier’s staff, use of sub-contractors, non-disclosure/confidentiality agreements)

1.2 Analyse the legal issues that relate to the creation of commercial agreements with customers or suppliers

1.2.1 Invitation to negotiate, also known as invitation to treat in English law

1.2.2 Principles relating to offer and acceptance, consideration, intention to create legal relations and capacity to contract

1.2.3 Principles relating to the battle of the forms and precedence of contract terms

1.2.4 Risks presented by contracting on supplier’s terms

1.2.5 Risks presented by contracting oral contracts

1.2.6 The Vienna Convention provisions for the International Sale of Goods and the impact on the formation of a contract

1.2.7 Misrepresentations made at pre-contract award stages

1.3 Compare types of contractual agreements made between customers and suppliers

1.3.1 One-off purchases

1.3.2 Framework arrangements and agreements

1.3.3 The use of mini-competitions

1.3.4 Call offs

1.3.5 Services contracts

1.3.6 Contracts for the hire and leasing of assets

2.1 Analyse the content of specifications for procurements

2.1.1 Benefits and risks of market dialogue with suppliers

2.1.2 Drafting of specifications to form a binding legal document

2.2 Appraise examples of key performance indicators (KPIs) in contractual agreements

2.2.1 Defining contractual performance measures or key performance indicators (KPIs)

2.2.2 The use of service level agreements (SLAs)

2.2.3 Typical KPI measures to assess quality performance, timeliness, cost management, resource efficiency and delivery

3.1 Analyse contractual terms for contracts that are created with external organisations

3.1.1 Express and implied terms: understand the role or use of different types of contract terms

3.1.2 The use of standard terms of business by both purchasers and suppliers

3.1.3 The use of model form contracts

3.2 Recognise examples of contractual terms typically incorporated into contracts that are created with external organisations

3.2.1 Key terms in contracts for indemnities and liabilities, sub-contracting, insurances, guarantees and liquidated damages

3.2.2 Terms that apply to labour standards and environmental, social and governance issues

3.3 Recognise types of pricing arrangements in commercial agreements

3.3.1 The use of pricing schedules

3.3.2 The use of fixed-pricing arrangements

3.3.3 Cost-plus and cost-reimbursable pricing arrangements

3.3.4 The use of indexation and price adjustment formulae

3.3.5 The use of incentivised contracts

3.3.6 Payment terms