COURSE OBJECTIVES
At the end of this program, participants will be able to:
- Apply useful techniques for identifying, analysing, mitigating, and monitoring risks throughout the project life cycle.
- Utilise a practical, six-step process to effectively manage project risk.
- Review the impacts of various approaches to risk allocation.
- Explore different contract types for transferring risks.
- Consider contractual techniques that ensure effective risk allocation.
- Develop an effective risk monitoring plan.
- Formulate risk management strategies to address potential project challenges.
TARGET AUDIENCE
- Personnel involved in Contracts, Tendering, Purchasing, and Procurement.
- Project personnel responsible for Project Management.
- Contract Administration staff engaged in Engineering and Operational roles.
- Maintenance personnel overseeing operational tasks.
- Risk Management professionals assessing potential issues.
- Claims, Financial, and Audit personnel involved in oversight.
- Individuals participating in the planning, evaluation, preparation, and management of tenders, specifications, awards, and contracts for acquiring materials, equipment, and services.
DAY 1: Understanding Risk & Its Management
- The Importance of Contractual Relationships.
- Conceptualising Risk.
- Risk Assessment Procedures and Management Strategies.
- Evaluating Suppliers.
- Understanding Internal Control and Control Proportionality.
DAY 2: Reducing & Shifting Risk
- Fixed Price Agreements - Grasping Firm Fixed Price or Lump Sum Contracts.
- Cost Reimbursable Agreements - Analysing Cost Reimbursable Contract Frameworks.
- Incentive Structures - Implementing Incentive Agreements and Award-Fee Structures.
- Tools for Risk Management - Evaluating Indemnities, Cross Indemnities, and Insurance Policies.
- Strategies for Risk Mitigation - Employing Contractual Protections for Effective Risk Management.
DAY 3: Risk-Related Terms & Conditions
- External Factors and Risk Distribution - Managing Force Majeure and Labor Disputes.
- Legal Aspects - Analysing Risk, Title, and Application of ICC Incoterms.
- Contractual Responsibilities - Grasping Assignment, Novation, and Flow-Down Provisions.
- Risks from Sub-Contractors - Recognising Risks Linked with Sub-Contractors.
- Holistic Risk Management - Reviewing Additional Clauses and Mitigation Techniques.
DAY 4: Managing Financial Risks
- Mitigating Risks Related to Payments.
- Currency and Economic Risk.
- Addressing Fraud and Corruption.
- Limiting or Exempting Liability.
- “Gross Negligence” and an analysis of sample clauses from standard contracts and other legal documents.
DAY 5: Solutions When Issues Arise
- Errors and Misrepresentations.
- Impracticality of Performance.
- Overview of Remedies and Their Varieties.
- Liquidated Damages, Warranties, and Covering.
- Examination of Real-World Examples.
