Contract & Project Risk Management & Compliance
Course Details
Objectives
• Provide an understanding of how risk arises
• Compare different methods of identifying and assessing risk
• Review the impacts of different approaches to risk allocation
• 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
Outline
Types and Management of Risk
• The Need for Contractual Relationships
• Defining Risk
• Categories of Risk for Both Sides of a Contract
• Risk Assessment Process
• Managing Risk
• Qualifying Suppliers
• Defining Internal Control
• Proportionality of Control
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
• Indemnities
• Cross Indemnities
• Insurance
Risk Related Terms & Conditions
• External events
• Force majeure
• Strikes and other labour disputes
• Risk and Title
• Use of ICC Incoterms
• Assignment and Novation
• Other clauses that need to flow down to sub-contractors
• Risks associated with Sub-Contractors
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”
• A review of some sample clauses from standard contracts, and other real documents
Remedies When Bad Stuff Happens
• Mistakes and Misrepresentations
• Impracticability of Performance
• Remedies Generally
• Types of Remedies
• Liquated damages
• Warranties
• Cover
• Discussion of real examples (delegates are encouraged to bring real or made up examples for discussion)
Who Should Attend ?
Contracts, Tendering, Purchasing, Procurement, and Project Personnel
Contract Administration, Engineering, Operational, and Maintenance Personnel
Risk, Claims, Financial, and Audit Personnel
Project Management Professionals
