Contracts Risk Management

Course Properties

Course date: 29-10-2017
Course End Date: 02-11-2017
Location Kuala Lumpur

Course Objective:

  The Primary Objectives of the Seminar are to help Delegates to:
    • 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

.

Who Should Attend:

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

.

Course Contents:

 Types and Management of Risk
      • 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 

.

 Minimizing and Transferring Risks
      • 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 labor disputes
      • Risk and Title
      • Use of ICC Inco terms
      • Assignment and Novation
      • Clauses that 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 o Remedies
      • Liquated damages
      • Warranties
      • Cover
      • Discussion of real examples (delegates are encouraged to bring real or made up examples for discussion)