One of the major functions of contracting is to ensure that risks to owners and contractor 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 individual risk and for the consequences should the risk occur.

The following are the highlights of this GLOMACS training seminar:

• Critical understanding of the risk mitigation process
• Knowledge to move contracts from the tactical to a more important strategic focus
• Ability to identify risks that can arise
• Skills in allocating contract and procurement risk
• Examples of Contract Terms and Conditions which allocate risk

The primary objectives of this GLOMACS training 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

This online training course will utilize a variety of proven online learning techniques to ensure maximum understanding, comprehension, retention of the information presented. The training course is conducted Online via an Advanced Virtual Learning Platform in the comfort of any location of your choice

The organisation will benefit by:

• Expanding the expertise of personnel involved in contract development and management will allow project and general management teams to be more effective
• The total cost of ownership will be understood and reduced by properly identifying and managing the risks
• Clear allocation of risk will reduce the possibility of disputes, and any that do arise should be settled more quickly, with less cost, delay and disruption
• Reducing project failure, costly changes, and cost overruns resulting from poor understanding and management of risk
• Implementing better risk management which improves the chance of project success
• Developing an appreciation of the true effect of contractual indemnities which will enable better decision-making as to contract structures and ensure that risk is passed to others properly and in a cost effective manner

Attendees will gain by participation in this GLOMACS training seminar as a result of:

• Increased understanding of risk
• Better ability to allocate risk and to select the appropriate contractual regime to achieve your aim
• Develop risk identification and assessment skills
• Heighten understanding of the alternative methods of allocating risk
• Improve understanding of different approaches to managing risk during a contract
• Improve the ability to reduce the negative impact of poorly-managed risk on a project or a company

This GLOMACS online training course is suitable for a broad range of people, but will greatly benefit:

• 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

DAY 1

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

DAY 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

DAY 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

DAY 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

DAY 5

Remedies When Bad Stuff Happens

• Mistakes and Misrepresentations
• Impracticability of Performance
• Remedies Generally
• Types of Remedies
• Liquidated Damages
• Warranties
• Cover
• Discussion of Real Examples (delegates are encouraged to bring real or made up examples for discussion)
• Review of Course, Questions and Answer Session

• On successful completion of this online training course, GLOMACS Certificate with eligible Continuing Professional Education credits (CPE) from National Registry of CPE Sponsor, will be awarded to the delegates.
• Continuing Professional Education credits (CPE): In accordance with the standards of the National Registry of CPE Sponsor, one CPE credit is granted per 50 minutes of attendance.

In Association With

Oxford Management Centre

A GLOMACS - Oxford Management Centre collaboration aimed at providing the best training services and benefits to our valued clients.

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All rights reserved. Any unauthorized copying, distribution, use, dissemination, downloading, storing (in any medium), transmission, reproduction or reliance in whole or any part of this course outline is prohibited and will constitute an infringement of copyright.

P.O. Box 74653, Dubai, United Arab Emirates
Tel : +971 - 04 - 425 0700, Fax : +971 (04) 425 0701, Email : info@glomacs.com