Introduction:

This course will look at how contracts are created, and some of the main clauses that appear in contracts, together with a number of alternative contracting strategies and structures. The course will then consider methods to be used in negotiating contracts, including techniques relating to negotiating on variations and claims. Moreover, the course will deal with day to day commercial issues arising from business agreements written in the English language. Also, the course will use techniques which have wide application to many types of contract in many countries. This course will feature:

• How contracts are created
• The main clauses that appear in contracts
• Alternative contracting strategies and structures
• Methods to be used in negotiating contracts, negotiating  contractual variations & claims
• Commercial issues arising from business agreements written in the English language

Course Objectives:

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

• Understand how contracts are formed
• Analyze issues behind major contract clauses
• Develop new skills in negotiation of contracts and managing contract disputes
• Learn how to transfer risk through different contract types
• Explain how to use contract provisions to reduce the risk of disputes

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:

How Contracts are formed?

• The reasons for using contracts
• Basic principles in contract formation
• Examples of formalities for contract formation
• Authority to sign a contract and the principles of agency
• Basic contractual structures
• Use of different types of contract for different business models

Main Contract Provisions and Associated Issues: Managing Risk

• Hierarchy of contract terms
• Warranty, indemnity and insurance provisions
• Distribution of risk and performance obligations
• Termination, suspension and force majeure
• Selecting the appropriate law to govern the contract
• Collateral warranties and entire agreement

Changes and Variations

• Changes to the contract
• Transfer of rights: assignment and novation
• Variation to the scope of work and variations clauses
• Controlling and managing change
• Minimizing claims and disputes
• Delay and disruption

Standardising Contractual Documents and Securitising Performance

• Use of standard form contractual documents
• International standard form agreements
• Bonds, guarantees and letters of assurance
• Managing payment risk
• Reservation of ownership
• Remedies for default, rework, re-performance, damages, penalties and performance

Dispute Resolution and Conflict Management

• Using contracts to avoid disputes
• Tiered dispute resolution mechanisms
• The contract clause to encourage negotiation
• Litigation and arbitration
• Modern dispute resolution processes including mediation

COURSE LOCATIONS