One of the critical outcomes of contract and project management is to ensure that risks to owners and contractors are identified and controlled in a proactive way so that both parties are satisfied with the project outcome. While world-class project and contract management cannot, of itself, make risk “go away”, it can, and should, identify the risks and opportunities, determine who is responsible for managing each individual risk, and for the consequences should the risk occur. We developed this interesting and fast-paced 2 part series to provide participants with:
At the end of this conference the participants will be able to:
Apply useful techniques to identify, analyze, mitigate, and monitor risks in the project life cycle.
Use a practical, six-step process to manage project 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.
Learn how to create an effective risk monitoring plan and risk management strategies.
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
The Need for Contractual Relationships
Defining Risk
Categories of R for Both Sides of a Contract
Risk Assessment Process
Managing Risk
Qualifying Suppliers
Defining Internal Control
Proportionality of Control
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
External events
Force majeure
Strikes and other labor 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
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
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)
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