Contract Risk Management & Compliance

Course Introduction

One of the significant functions of contracting is to ensure that risks to owners and contractors are identified and managed so both parties are contented with the project result. While a contract cannot, of itself, create risk “go away”, it can, and should, classify the risks, determine its responsibility for managing each risk and for the consequences should the risk occur. Contract Risk and uncertainties are everywhere. These contract risks range from complex regulations procedures, through increased globalization and sophisticated supply chain networks, to contracts that drive strategic outcomes and competitive advantage.

Pretentious supply or commodity acquisitions are no longer prevailing, and contract management has become the key to running business risks – strategic, operational, compliance, financial, reputation and legal. At the core of every commercial relationship deceits a contract that contains the formal responsibilities companies accept. Yet many businesses endure operating with scrappy contract management practices, with the contract viewed as a legal and administrative problem.

The following are the highlights of this training course:

• Acute understanding of the risk mitigation practice
• Awareness to move contracts from the tactical to a more relevant strategic focus
• Capability to recognize risks that can arise
• Skills in apportioning contract and procurement risk
• Contract Terms and Conditions which assign risk

Objectives

The primary objectives of this training seminar are to help the participants to:

• Deliver an understanding of how risk rises
• Match different methods of classifying and evaluating risk
• Assessment of the impacts of diverse approaches to risk portion
• Discover different Contract types to the relocation of risks
• Reflect the contractual techniques to ensure actual risk allocation
• Analysis of risk management techniques throughout the life of a contract

Training Methodology

The participants will increase competencies through various instructional methods, including real-life experiences, cases/exercises, reviewing published articles, checklists, and group discussions covering current practices and their relationship to the implementation of new concepts.

They are encouraged to bring real problem illustrations 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 one-to-one discussions with the trainer.

Target Audience

This training course is suitable to a wide range of professionals but will greatly benefit:

• Project Management Professionals
• Audit, Claims, Financial and Risk Personnel
• Contracts, Tendering, Purchasing, Procurement, and Project Personnel
• Engineering, Contract Administration, Operational and Maintenance Personnel

Daily Topics

DAY ONE: TYPES & MANAGEMENT OF RISK

• The Definition of Risk
• The Organizational Need for Contractual Relationships
• Different Categories of Risk for partners of a Contract
• The Process of Risk Assessment
• The Process of Risk Management
• Procedures of Qualifying Suppliers
• The Internal ControlDefinition
• Sharing of Control

DAY TWO: MINIMISING AND TRANSFERRING RISK

• Transferring Risk through Contract Types
• Firm Fixed Price or Lump Sum Contracts
• Cost Reimbursable Contracts
• Incentive Contracts
• Award-Fee Pricing Arrangements
• Indemnities
• Cross Indemnities
• Insurance

DAY THREE: RISK-RELATED TERMS & CONDITIONS

• External Events
• Force Majeure
• Strikes and Other Labour Disputes
• Risk and Title
• Assignment and Novation
• 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
• 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

• Mistakes and Misrepresentations
• Impracticability of Performance
• Remedies Generally
• Types of Remedies
• Liquidated Damages
• Warranties

For registration & more information please contact

NAYEL Training Centre 

T: +971 4 379 7245 | M: +971 50 249 6876 WhatsApp +971 50 249 6876

Email [email protected]