PM044: Contract Planning, Strategy and Claims Mitigation
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1 PM044: Contract Planning, Strategy and Claims Mitigation PM044 Rev.002 CMCT COURSE OUTLINE Page 1 of 5
2 Training Description: Contracts establish the responsibilities and rights of the parties. This highly interactive course will provide a practical hands-on approach to effective management of contracts and offer techniques and contract strategies to assist this process. It will also assist in establishing an international risk management strategy with reference to contracts and develop good business practice to take advantage of opportunities, enhance efficiency and increase profitability. In this course, you will learn how to: Enhance your contract management skills to improve contract and company performance Develop systems to reduce the frequency of contractual disputes Resolve such contractual disputes as do occur in an efficient fashion Manage contracts and projects from the pre-contract, during the performance of the contract and through to the post-contract stage in accordance with best practices Enhance profitability, not only by increasing money coming in from contracts, but also by preventing unnecessary sums going out in operational disputes This training will address the framework within which contracts are created, and the methods by which valid contracts may be formed. It will also look at some of the different contracting strategies available in international contracting and some of the common provisions. In addition, it will also look at payment issues and post-contract liability. The course will consider how to avoid disputes by good contract management and the various methods of resolving those disputes that do arise. This will include current international best practice in Alternative Dispute Resolution in general, and mediation in particular. This is not a law training. It is the development of commercial awareness of delegates through practice of effective management procedures assisted by a working knowledge of necessary legal principle. Training Objective: By the end of the training, participants will be able to: Know the necessary contractual and legal knowledge Have an understanding of and application of different types of agreements Have increased commercial awareness needed to enhance smooth running of contracts increase ability to manage contracts with a view to reducing claims and conflict Identify and mitigate risk factors and associated commercial and programme implications Learn the importance of good record keeping and service of contractual notices Gain increased understanding of commercial liabilities resulting from schedule changes and variations Obtain Improved ability, successfully to negotiate and maintain long term inter-business contracts with confidence Understand the need to deal with issues as they arise and to resolve disputes within the contract structure wherever possible Analyze, negotiate and implement the most appropriate method of resolving disputes preventing escalation by early identification PM044 Rev.002 CMCT COURSE OUTLINE Page 2 of 5
3 Training Designed for: This course is intended for all those who are working as Contract Administrators, Contracting Unit Supervisors, Project Engineers, Project Managers, Claims Managers and Business Audit Officers, Risk Managers, Contract Strategists and those Staff who are new to their roles, or experienced staff looking for a refresher programme Training Program: DAY ONE: Pre-Test Introduction The Legal Framework of Contracts and How They are Created The need for contractual relationships External and internal dimensions of a business relationship Formation of a Contract The key elements of a contract Oral or written? Electronic contracts Terms of the contract Inter-business contracting Law of Agency Sources of Law Developing legal knowledge and skills DAY TWO: Some Issues Arising in Contracts Precedence of documents in a contract Obligations to perform Delivery, acceptance and transfer of title and risk o ICC Incoterms Liability in negligence relationship with contract conditions Product liability and defective goods Intellectual Property clauses some special issues Letters Intent; Instruction/Award; Comfort; Awareness Conflict of Laws and Choice of Law and jurisdiction Clauses DAY THREE: Different Contracting Strategies in International Contracts Some types of Standard Form/Model Form Conditions Drafting Standard Terms Potential problems with Standard Form Contracts Limiting or excluding liability Unequal Bargaining Positions PM044 Rev.002 CMCT COURSE OUTLINE Page 3 of 5
4 Traditional contracts o Fixed Price/Lump Sum o Bill of Quantities/Schedule of Rates re-measured contracts o Full reimbursable cost plus why this is sometimes the right answer o Dealing with volatile markets economic price adjustment clauses and the use of indices o Adding incentives to lumps sums Non-Traditional contracts o Build Own Operate and similar structures o Alliances and Partnering No Cure/No Pay a technique from marine salvage that has wider uses DAY FOUR: Contract Management and the Management of Change and Payment The need for good contract management Variation of Contract Terms Variation of Scope of Work Management of Variations and retaining control of the contract Payment and money events Delay, suspension and extension of time Finance and Payment in International Trade Bonds and Guarantees Defects Liability warranty periods o Managing rolling warranties Termination of the Contract and Remedies Mitigation of losses and claims DAY FIVE: Resolution of Disputes Negotiation, compromise and settlement Litigation Arbitration Alternative Dispute Resolution including mediation Managing disputes Review of programme, and final questions Course Conclusion Post-Test and Evaluation Training Requirement: Hand s on practical sessions, equipment and software will be applied during the course if required and as per the client s request. PM044 Rev.002 CMCT COURSE OUTLINE Page 4 of 5
5 Training Methodology: This interactive training course includes the following training methodologies as a percentage of the total tuition hours:- 30% Lectures, Concepts, Role Play 30% Workshops & Work Presentations, Techniques 20% Based on Case Studies & Practical Exercises 20% Videos, Software & General Discussions Pre and Post Test Training Certificate(s): Internationally recognized certificate(s) will be issued to each participant who completed the course. Training Fees: As per the course location - This rate includes participant s manual, hand-outs, buffet lunch, coffee/tea on arrival, morning & afternoon of each day. Training Timings: Daily Timings: 07:45-08:00 Morning Coffee / Tea 08:00-10:00 First Session 10:00-10:20 Recess (Coffee/Tea/Snacks) 10:20-12:20 Second Session 12:20-13:30 Recess (Prayer Break & Lunch) 13:30-15:00 Last Session For training registrations or in-house enquiries, please contact: Aisha Relativo: aisha@cmc-me.com Tel.: or Mob.: Training & Career Development Department PM044 Rev.002 CMCT COURSE OUTLINE Page 5 of 5
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