One of the major functions of contracting is to ensure that risks to owners and contractor are identified and managed in a way that both parties are satisfied with the project outcome. Analyzing risk and how to deal with it in a post-Pandemic world is at the heart of this training course. Building in coping and disposal mechanisms, accepting the reality of risk-bearing and sharing policies rather than risk diversion and avoidance are key to meeting the challenge of modern contract management. Determining who is responsible for managing each individual risk and understanding and dealing with the consequences should the risk occur is required knowledge for contract professionals.
The following are the highlights of this Contract Risk Management & Compliance training course:
- Critical understanding of the risk mitigation process
- Knowledge to move contracts from the tactical to a more important strategic focus
- Ability to identify risks that can arise
- Skills in allocating contract and procurement risk
- Examples of Contract Terms and Conditions which allocate risk
- Applying the lessons learned from a pandemic
The primary objectives of this Energy Training Centre training course are to help delegates to:
- Provide an understanding of how risk arises
- Compare different methods of identifying and assessing risk
- Review the different approaches to risk allocation, avoidance and confrontation
- Explore different Contract types to transfer risks
- Consider the contractual techniques to ensure effective risk allocation
- Review risk management techniques during the life of a contract and beyond
Participants will increase competencies through a variety of instructional methods including lecture by an experienced practitioner and consultant, cases / exercises, reviewing published articles, checklists, and group discussions covering current practices and their relationship to the implementation of new concepts. Emphasis will be placed on learning the lessons of the pandemic.
Delegates are encouraged to bring real problem examples with them, for discussion on a confidential basis, and to share their experience of particular issues in their company or industry. Time will be allowed for general discussions, and for one-to-one discussion with the trainer.
The organization will benefit by:
- Expanding the expertise of personnel involved in contract development and management and will allow project, contracts and general management teams to be more effective
- The total cost of ownership will be understood and reduced by properly identifying and managing risks
- Clear allocation of risk will reduce the possibility of disputes, and any that do arise should be settled more quickly, with less cost, delay and disruption
- Reducing project failure, costly changes, and cost overruns resulting from poor understanding and management of risk
- Implementing better risk management which improves the chance of overall project success
- Developing an appreciation of the true effect of contractual indemnities, warranties, guarantees and insurance which will enable better decision-making as to contract structures and ensure that risk is passed to others properly and in a cost effective manner
Attendees will gain by participation in this Contract Risk Management & Compliance training course as a result of:
- Increased understanding of risk
- Better ability to allocate risk and to select the appropriate contractual regime to achieve your aim
- Develop risk identification and assessment skills
- Heighten understanding of the alternative methods of allocating or sharing risk
- Improve understanding of different approaches to managing risk during a contract and during risk-bearing events
- Improve the ability to reduce the negative impact of poorly-managed risk on a project or a company
This Contract Risk Management & Compliance training course is suitable for a broad range of people, but will greatly benefit:
- Contracts, Tendering, Purchasing, Procurement, and Project Personnel
- Contract Administration, Engineering, Operational and Maintenance Personnel
- Risk, Claims, Financial, and Audit Personnel
- Project Management Professionals
- And 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
Day One: Types and Management of Risk
- The Need for Contractual Relationships
- Defining Risk
- Categories of Risk for Both Sides of a Contract
- Risk Assessment Processes
- Managing Risk Before and During the Contract
- Qualifying Suppliers
- Negotiating Terms that Carry Risk
- Internal Control and its Proportionality
Day Two: Minimizing and Transferring Risk
- Transferring Risk through Contract Types
- Firm Fixed Price or Lump Sum Contracts
- Cost Reimbursable Contracts
- Incentive Contracts
- Award-Fee Pricing Arrangements
- Terms, Conditions and Warranties
- Indemnities and Cross Indemnities
- Insurance and Guarantees
Day Three: Risk Related Terms & Conditions in a post-Pandemic World
- External Events
- Force Majeure
- Strikes and Other Labour Disputes
- Risk and Title
- Use of ICC Incoterms
- Assignment, Novation and Re-Negotiation
- Other Clauses that Need to Flow Down to Sub-contractors
- Risks Associated with Sub-Contractors
Day Four: Dealing with Financial Risks
- Controlling Risk Associated with Payments
- Currency Risk
- Economic Risk
- Fraud and Corruption
- Limiting or Excluding Liability
- Distinctions between Liability in Contract, and the General Law
- Gross Negligence
Day Five: Remedies When Bad Stuff Happens
- The nature of contractual remedies generally
- Mistakes and Misrepresentations
- Impracticability of Performance
- Types of Remedies
- Liquidated Damages
- Warranties
- An Overarching View of Dispute Resolution
- Review of Course, Questions and Answer Session
