Global Learning for Operational Leaders
Classroom
14 sessions
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Online / Live
14 sessions
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Introduction
Course overview
How a contract is priced and paid shapes behaviour, risk and value. Choosing the right pricing model and payment terms is a key commercial decision.
This Aractech course covers pricing models including fixed price, cost reimbursable, target cost and unit rates, incentives, escalation and indexation, milestone and progress payments, retentions and advance payments, and payment administration. Participants compare pricing options for case contracts.
What you will achieve
Learning objectives
- Compare contract pricing models
- Select pricing models for different situations
- Design incentives and target cost mechanisms
- Apply escalation and indexation
- Structure payment terms and securities
- Administer payments correctly
Who should attend
Target audience
- Contract and commercial managers
- Procurement professionals
- Quantity surveyors
- Finance managers
- Project managers
- Legal professionals
Methodology
Learning approach
- Model comparisons
- Calculation exercises
- Case studies
- Group discussions
- Workshops
Complete course outline
Five focused days of learning and application
The timings provided are estimates and may vary depending on the number of participants and the discussions taking place during the sessions. They are indicative only and do not constitute a binding commitment.
Day 1
Pricing Models
- Fixed price
- Cost reimbursable
- Unit rates
- Coffee break
- Unit rates (continued)
- Hybrid models
- Exercise: Model selection
Day 2
Incentives and Target Cost
- Target cost contracts
- Pain-share and gain-share
- Incentive design
- Coffee break
- Incentive design (continued)
- Behaviour
- Workshop: Incentive design
Day 3
Escalation and Risk
- Price adjustment
- Indexation
- Currency
- Coffee break
- Currency (continued)
- Contingencies
- Exercise: Escalation calculation
Day 4
Payment Terms
- Milestones
- Progress payments
- Advance payments
- Coffee break
- Advance payments (continued)
- Retentions and bonds
- Case study: Cash flow dispute
Day 5
Payment Administration
- Valuations
- Certification
- Invoicing
- Coffee break
- Invoicing (continued)
- Audits
- Capstone: Pricing and payment strategy
FAQ
Frequently asked questions
What does Contract Pricing and Payment Mechanisms (CON-013) cover?
This course covers Contracts Management through a structured five-day outline focused on practical application, discussion, and implementation planning.
When is the next available session?
The next scheduled session starts on 9 - 13 November 2026. See the course schedules section for the available dates and delivery formats.
Who should attend this course?
Contract and commercial managers, Procurement professionals, Quantity surveyors
Is bilingual course delivery available?
Yes. All course materials and presentations are provided in English, while bilingual explanation and discussion support may be available depending on the selected location and trainer availability. For example, when attending a course in Istanbul, you may request a Turkish-speaking trainer to explain the English course content in Turkish. Arabic explanation support may also be requested at this location. Other languages are available in selected cities. You can choose your preferred language support as an optional preference during registration.
How can I register for a session?
Use any Register button next to the available course dates to open the participant registration page and submit your booking request for the selected session.
Is this course available online as well as classroom-based?
Check the course schedules section for currently published classroom and Online / Live sessions.
Where are classroom sessions delivered?
Current classroom venues include Kuala lumpur, Barcelona, Paris, Frankfurt, Rome.
How long is the training programme?
The programme runs for five days from 09:00 to 14:00, which gives 25 contact hours, including a daily 30-minute break (22.5 hours of instruction).
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Choose an available date and venue, add your participants, and we will email a formal quotation for Contract Pricing and Payment Mechanisms to your business address.