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SEIFSA Indices and contracts price adjustments

1 Day Training

Dates: 10 July | 18 August | 04 October 2024
Locations: Johannesburg, South Africa
Platform: Available In-Class / Online

Price: Available on request

This is a non-Accredited course.

Course Introduction

Acquire knowledge of when and how to use model formulae to adjust existing contracts, timeously, to reflect changes in prices and costs with shared benefits.

Course Objectives

  • To have a clear understanding of what a Contract Price Adjustment (CPA) is, defined within the context of the SEIFSA Price and Index Pages (PIPS);

  • To discuss cost recovery and cost management in contracts.

  • To review what an index is and the optimal use of the SEIFSA indices in managing, controlling and recovering costs in contracts.

  • To gain insight of SEIFSA PIPS indices.

  • To determine how to structure mutually beneficial Contract Price Adjustment clauses; and

  • To enhance our knowledge of using international recognised formulae to build your CPA model (e.g. movement in prices or cost)

Who should attend?

  • All people involved in contract negotiations and pricing

  • Procurement Managers

  • Contract Managers

  • Buyers

  • Marketing and sales teams

  • Suppliers to government, parastatals and large corporate companies

Training methodology

Training Methodology

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.
– Course Material: Access well-crafted supporting resources.
– Group Work: Collaborate on discussions and case studies for practical insights.
– Workshops & Role-Play: Participate in immersive, scenario-based activities.
– Practical Application: Focus on applying theoretical knowledge in real situations.
– Post-Training Support: Receive extensive support after training for skill implementation.

Training Outline

Contract Price Adjustment (CPA)

  • What is Contract Price (CPA) Adjustment?

  • CPA –Explained by the Concept of a Price

  • Fixed Price Vs Contract Price Adjustment Price

Importance of Modelling Company Inflation

  • Company Supplying Product/Service

  • Company Buying Products/Service

 Principles Underlying Inflation Modelling

 Broad themes of importance

 Important Variables to always keep an eye out for

 Spirit of CPA

  • Mitigates the risk of the current volatile business environment

  • (Business cycles and/or wages and inflation)

Pressures in business

  • Clients

  • Corporates

  • Costs

VS

  • Suppliers

  • Profitability

  • Sustainability

Importance of CPA

 Cost breakdown

  • Index

  • SEIFSA Price and Index Pages (PIPS)

  • Formula calculates

  • weighted average increase / decrease

Fixed portion

  • Size of fixed portion

  • Included

  • Excluded

  • Reducing

Indices

 Types of Indices

  • Advantages of using an index

  • What is rebasing of an index

  • What to do when an index is rebased

  • Conversion based

  • What to do when an index is discontinued

  • A cautionary note

 New indices recently developed

  • CPA Calculation

  • Fixed portion included

  • Fixed portion excluded

Enquire Now

    Enquire Now

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