Contracting & Contract Management
Contracting and contract management is a daily business in the aviation sector.
This course is dedicated to a detailed analysis of contracting and sub-contracting related to aircraft management with references to operations, maintenance and insurance.
Many aspects related to aircraft management will be analyzed based on a standard aircraft lease agreement.
This course will provide participants with a larger and in-depth knowledge of contracting and sub-contracting in aviation and will focus on the financial consequences of specific contractual clauses.
- 1. INTRODUCTION:
- the constitutive elements of a contract
- the links between contracts, sub-contracting, contract management and service level agreements
- the contract in an operational environment: compliance with regulations
- 2. CONTRACT NEGOTIATION:
- successful negotiation tips.
- 3. DRY LEASE / WET LEASE:
- Responsibilities Lessor / Lessee (operational, maintenance, insurance)
- 4. CONTRACT ANALYSIS – a typical Aircraft Lease Agreement:
- Parties concerned
- description of the subject (aircraft / engines)
- duration and anticipative dissolution
- rent: elements of the rent
- reserves – cost calculations (hard time, flight hour, hour/cycle ratio)
- delivery conditions and inspection
- re-delivery conditions
- maintenance: compliance with regulations – sub-contracting – AD/SB compliance – cost sharing
- operations: operational requirements – sub-contracting
- insurance: aircraft, passenger insurance, third liability – insurance coverage system
- Important clauses: representations and warranties, disclaimers, breach of contract and consequences
- sublease: dry – wet
- pooling of parts and components
- jurisdiction: importance
- 5. SUB-CONTRACTING:
- relevant responsibilities
- authorizations: content main agreement – competent authorities
- 6. CONTRACT MANAGEMENT:
- importance of contract management
- upstream and pre-award activities
- downstream and post-award activities
- 7. SERVICE LEVEL AGREEMENTS:
- how to evaluate an agreement
- service related elements
- management related elements
- Understanding of contractual clauses
- Identification of problematic clauses
- Identification of the financial consequences of contractual clauses
- Relevant responsibilities in case of sub-contracting
- How to handle contract management.
- The relation and interaction of the airline and Civil Aviation Authorities in respect of contracting.
Who should take this course
All employees within aviation companies involved in contracting and/or contract management.
An interest in achieving an increased and broader knowledge in contracting, sub-contracting, contract management and SLA’s.
NOTE: Participants are kindly requested to bring a laptop (tablets are unsuitable) in order to access digital course material, which will be provided on a USB-stick during the training course.
2 days, starting at 09:00 on the first day and ending at approx 16:30 on the last day.