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In the present competitive business environment, there is an ever-increasing emphasis on timely market introduction of products. Owners are extremely sensitive to global market forces, and are seeking to reduce project cost and duration. This then confronts contractors and suppliers with increased challenges to meet these demands without jeopardizing their commercial positions. Contracts are the basis of all projects, and establish the responsibilities and rights of the parties. This highly interactive course will provide a practical hands-on approach to effective creation of contracts, and the management of both the contract, and the project to which it relates. It will also offer techniques and contract strategies to assist this process, including establishing a risk management strategy with reference to contracts, and techniques for managing the planning, and developing good business practice to take advantage of opportunities, enhance efficiency and increase profitability.

 

By the end of this course, delegates will be able to:

 

· Understand necessary contractual and legal knowledge

· Understand application of different types of agreements

· Identify and mitigate risk factors and associated commercial and seminar implications

· Understand importance of checklists, file-management and standardization of documentation

· Understand various project delivery systems

· Increase understanding of commercial liabilities resulting from schedule changes and variations

· Conduct a cash flow analysis and apply advanced scheduling techniques

· Develop a project control system

· Handle both reactive and proactive project management techniques

· Analyze, negotiate and implement the most appropriate method of resolving disputes

· Gain improved managerial approaches to both contract and project management

The Basis of Contracting

· Principles of Good Contracting

· Why do we use contracts?

· Key steps in the creation of a Contract

· Essential elements of a valid Contract

· Overview of Tendering & Contract Award Process

· Advantages of tendering and some pitfalls to avoid

· Distinguishing price and values

· Other Types of Obligation Documents

· Bonds and guarantees

· Letters of intent and award – are they contractual?

· Letters of Comfort – Do they mean anything?

· Side letters

· When to Obtain Legal Advice

· Law of Agency

· Authority to sign contracts

· Organising strategies for Contract Management

· Defining Contract Management Responsibilities

· Basic contract planning

· Communication and managing expectations

 

Risks and Selecting the Right Contract Structure

· Assessing and allocating risk

· Identifying Risk

· Apportioning Risk

· Incorporating Risk Assessment and Management

· Selecting types of contract

· Traditional – lump sum, schedule of rates, reimbursable etc

· EPC

· BOT/BOOT

· Alliance/partnering

· Warranty Management

 

Major Contract Terms to Aid the Handling of Performance Issues

· Effective handling of Contract Performance issues

· Design and Specification

· Work Ordering Process

· Obligation to perform work

· Transfer for ownership

· Risk of damage

· Contract Administration

· Reporting Mechanisms

· Cost Control

· Recovery Clauses – Acceleration

· Insurance and Indemnities

· Termination and suspension

 

Managing Change within a Contract

· Understanding change

· Changes to the contract documents

· Variations in scope

· Increases and decreases

· Change in timing

· Change in method of working

· Managing change

· Risks of uncontrolled change

· Developing Contract Terms and Conditions

· Finding Contract Templates

· Using standard form documents

· Modifying standard forms

· Drafting special conditions

· Issues for subcontracts

 

Resolution of Disputes

· Eliminating sources of Contract disputes

· Errors and omissions

· Anticipating and avoiding Conflicts

· Dealing with Unknowns

· Tracking Changes

· Managing Expectations

· Resolving disputes

· Negotiation

· Stage processes

· The need for compromise

· Negotiation techniques

· Litigation

· Arbitration, Alternative Dispute Resolution

· Expert determination

· Early neutral evaluation

· Mini-Arbitration

· Mediation

· Med/Arb and Arb/Med

· Pendulum Arbitration

· Dispute Review Board and similar arrangements

 

Why Do We Do Projects?

· Introduction

· Why do we do projects?

· What is a project?

· What is project management?

· Project Delivery Systems

· Initiating

· Project selection

· Qualitative techniques

· Economic Evaluation

· Selecting the right project manager

· Project Objectives and Stakeholder assessment – who wants what?

· Identification of stakeholders

· Stakeholder analysis

· Management of stakeholders

 

Planning & Project Risk Management

· Task Characteristics and Duration Assessment

· Planning and Scheduling Methods

· Critical Path vs Critical Chain Scheduling

· Resource Allocation Methods

· Time-Cost Trade-off

· Lead/Lag Scheduling, Critical Chain scheduling

· What do we mean by risk?

· Risk vs. uncertainty

· Attitudes towards risk

· Risk identification, factors and sources

· Risk analysis approaches

· Qualification and quantification of probability and impact

· Dealing with subjective elements of risk

· Risk strategies

 

Executing, Monitoring & Controlling

· Executing

· Lean Construction Strategies

· Staff Acquisition

· Team Development and Motivation

· Leadership vs Management

· Management styles and Conflict Handling

· Monitoring and controlling

· Using Earned Value to report accomplishment

· Implementing Risk strategies

· Project Closing