Skills Enhancement on Contract Risk Management & Compliance in the Public Sector

Course Overview:

One of the major functions of contracting is to ensure that risks to owners and contractors are identified and managed in a way that both parties are satisfied with the project outcome. While a contract cannot, of itself, make risk “go away”, it can, and should, identify the risks, determine who is responsible for managing each risk, and for the consequences should the risk occur

Course Objectives:

At the end of this course, the participants will be able 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·

Course Coverage:

Topic 1: 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

Topic 2: 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

Topic 3: 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

Topic 4: 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

Topic 5: Remedies When Bad Stuff Happens:

Mistakes and Misrepresentations
Impracticability of Performance
Remedies Generally
Types of Remedies
Liquated damages
Warranties
Cover

Targeted Participants:

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