Introduction:

In every organization, the commercial and business structure is based on contracts. These may vary from simple purchase orders, or even handshakes, through to highly-complex financing agreements. The development, negotiation and management of these contracts are often in the hands of skilled professionals, but the general managers handling the delivery of the product, service or project may not be fully familiar with the complexities of the documents concerned. This course is intended to allow professional managers with a background other than law or contracts to better understand the processes and issues involved, and therefore improve their overall management skills.

This course is intended to allow professionals and managers with a background other than law or contracts to better understand the processes and issues involved with contracting, and therefore improve their overall management skills. Every organization relies on contracts to protect the interests of the company and manage risk effectively. It is imperative that everyone in the organization understands the issues and processes involved in a contracting scenario. This course will feature:

• The benefits of understanding contracts
• How contracts can be developed
• Different contracting structures
• How contracts allocate and manage risk
• Examination of specific contract clauses
• How to be more effective in selecting contract types and structures
• How to ensure risk is properly allocated and managed in different situations
• How to anticipate problems and manage risks through the contract
• How to integrate the contract within the structure of project management
• How to handle disputes and performance issues, including the latest methods of dispute resolution
• How to establish appropriate terms and conditions, and what the different provisions in common use mean in practice

Course Objectives:

• Recognize the structure and purpose of contracts
• Show how different structures can be used in different situations
• Improve the ability of managers to communicate with contracts personnel
• Illustrate some of the pitfalls that exist within commonly-used contract clauses
• Construct and control contract negotiations and management
• Explore the reasons why we use contracts, and how they can be developed
• Examine different contracting structures, and how they allocate and manage risk
• Review some of the major provisions in contracts, and discuss why they are drafted as they are, and what pitfalls there may be if they are not managed properly

Who Should Attend?

Procurement Managers, Purchasing Staff, Engineering, Operational and Maintenance Personnel, Contracts Engineers, Administrators, and Managers, Commercial, Financial and Insurance Professionals, Project and General Management, Contracts & Contracting Unit Professionals, Project Professionals, Procurement & Purchasing Staff, Purchasing Professionals and Procurement Officers, Commercial Professionals, Contract Administrators, Contract Administration Professionals, Contract Managers and Contract Professionals, Supply officers, Buyers, Project Coordinator’s, Project Managers and other Project Professionals, Claims Personnel, Legal Advisers, Contract Strategists, Business Audit Officers, Engineers, Project Construction Professionals, Contract Administrators, Contract Professionals and Project Coordinators, Buyers, Purchasing Professionals and Procurement Officers, Contracts Managers, Project Managers, Tenders, Contracts, Buyers, Purchasing, Financial Personnel, Tendering, Purchasing, Project Management Professionals, Engineering, Operational, Trade, Finance, and Maintenance Professionals, all others who are involved in the planning, evaluation, preparation and management of tenders, specifications, awards, and contracts that cover the acquisition of materials, equipment, and services and who are in organizations whose leadership want high levels of competency in those involved in these activities, those from a Project Management or General Management background who do not think they have sufficient understanding of contract issues, those new to the function, preparing for a major project, or experienced managers looking for a refresher, anyone involved in the management of risk, those involved in implementing and administering contracts and handling claims and change orders; also those involved in any conflict or dispute with a contracting party and interested to learn how to avoid or resolve these contractual issues, those involved in contract and business related negotiations, those involved in any aspect of implementing, managing or administering contracts in the post-award phase

Course Outline:

The Basis of Contracting

• Why we use contracts
• Legal requirements for a valid contract
• Oral contracts
• Electronic contracts
• Terms and conditions of the contract
• Authority to contract

Risk and Different Contracting Types

• How to assess and manage risk
• Traditional contract types
• Modern contract types
• Bonds and Guarantees
• Letters of Intent
• Which law?

Major Contract Terms

• Obligation to perform
• Limits of liability
• Consequential loss
• Overall caps
• Connection with negligence
• Liquidated damages and penalties
• People
• Property
• Indemnities: what they mean, and why they are important
• Ownership of existing rights
• Ownership of rights created under the contract
• Dealing with claims of breach
• Insurance, and how this links with indemnities
• Intellectual property
• Warranty and rework
• Force Majeure

Changes and Variations, Payment and Close-out Issues

• Changes and variations
• Payment issues
• Letters of credit
• Warranty claims
• Suspension and termination
• Contractual issues on close out

Negotiation, Avoidance and Resolution of Disputes

• Negotiation, compromise and settlement
• Litigation
• Arbitration
• Mediation
• Expert determination
• Dispute review boards

COURSE LOCATIONS