SEIFSA Indices and contracts price adjustments
1 Day Training
Dates: 06 December 2024
Locations: Grayston Ridge Office Park, Sandton
Platform: Available In-Class / Online
Price: Available on request
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
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
Related Courses
Advanced Fleet Operations, Incident Investigation and Emergency Safety Skills
View More