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Contract Risk Management and Mitigation Measures

An Intensive 3-Day Training Course

Contract Risk Management
and Mitigation Measures

Scheduled Dates

12 - 14 Aug 2024 Kuala Lumpur - Malaysia $3,900
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Why Choose this Training Course?

Increasingly complex contracts and procurement structures often make it difficult to fully appreciate risk allocation and its implications. Prevention is better than cure. Late delivery, defects and cost overruns, damage to reputation, client relationships and the bottom line, can all be reduced or avoided through risk management. Unforeseen changes often occur to the design and scope which can cause further calls to increase investment. Risk management is a fundamental element of professional contract management. Unfortunately, it’s not often given the priority it deserves, which can lead to costly consequences. Research shows that contract risk management is a discipline that is difficult to consistently apply and maintain over the duration of a contract without the proper tools. This is especially difficult for contract managers who are responsible for managing a large number of complex contracts across multiple locations with multiple stakeholders.

The value of contracts is realised only after they're signed. Inadequate planning could not only lose out on benefits that your company has sought to secure, but it could also be exposed to new risks, including poor or perverse incentives, bad planning and demand management, ill-informed buying, deliberate contract manipulation, miscommunication, revenue leakage and cost overruns.

This PetroKnowledge Contract Risk Management and Mitigation Measures training course is intended to provide a good grounding in the essentials of contracts risk management arising out of construction contracts in an international context, using business English. It will include:

  • A general overview of various contract risks and their mitigation measures
  • An understanding of the role of managing risk within the fundamental principles of contract formation
  • Identifying tools to manage and mitigate poorly defined or inappropriate contracting strategy
  • Effective methods to ensure the contract delivers as expected
  • Strategies to prevent the erosion of contract value

What are the Goals?

On completion of this Contract Risk Management and Mitigation Measures training course, participants will be able to:

  • Improve the ability of delegates to understand practical contract management obligations and client responsibility
  • Facilitate greater understanding between commercial, technical and legal departments in meeting challenges over the duration of a contract from procurement to duration
  • Understand and managing the impact of scope creep and quality failures over the duration of works
  • Develop sound strategies for managing risk to business from loss of competitive edge to personal reputation
  • Improve relationships with suppliers and contractors as a result of recognizing needs and avoiding conflict

How will this Training Course be Presented?

A combination of conventional classroom style teaching, supported by real examples, sample documents and case studies, and running/stand-alone exercises for delegates to work on both individually and in teams. Group and individual discussion will take place throughout, and an atmosphere of interactive safe environment new thinking will be encouraged.

 

Daily Agenda

Day One: Understanding and Identifying Risk in Contracting

  • The Role of the Contract in Managing Risk
    • Contract components, validity, formation requirements, authority, and agency
    • Contract provision: terms and conditions; warranties and indemnities; third parties; insurance; dispute resolution mechanisms; force majeure
  • Understanding both Client’s and Contractor’s Positions in the Tendering Process
  • Types of Contract risks
    • The challenge of selecting the appropriate jurisdiction
  • Impact of National, Local, industry-specific, and regulatory laws
  • International laws
  • Inadequate contract execution
  • Failure to monetize high value services appropriately
  • Ill-defined and renegade contract communications,
  • Poor management of obligations
  • Scope creep and quality failures - including failure of the contract to meet the business needs
  • Damage to business - from loss of competitive edge to personal reputation
  • Loss of intellectual property - poorly managed knowledge transfer
  • Loss of bargaining power - inability to act as an informed buyer
  • Technical risks
    • Design change after FEED or other reasons
    • Unforeseen conditions
    • Obsolescence of product and new technology
  • Commercial Risk
    • Financial Risk
    • Tax Liability
    • Commodity Rates fluctuation
    • Currency fluctuation
  • Environmental Risk
    • Environmental laws / liability

Day Two: Practical Risk Management and Mitigation

  • Clearly understanding your contract in-depth
    • Using standard form construction contracts
    • Selecting the appropriate contract that best fits the project characteristics
    • Scope of work, schedules, and variation
  • Controlling risks that impact on delivery and return on investment
  • Avoiding and minimising non-essential variation
  • Contractual mechanisms to enforce performance, a structured approach
  • Using exclusion, time, and notice provisions
  • Engaging with the end users of your contracts to ensure they fully understand the terms of the contract and how it is intended to operate
  • Dealing with Delay and Disruption, Acceleration and Global Claims
  • Investing in appropriate, joined up tools to provide continual oversight and governance of risks that may negatively impact completing the project to schedule and on budget.
  • Holistic risk management strategy to manage those risks and opportunities throughout the life of your project
  • Early warning, monitoring pricing adjustments, price list additions or other amendments
  • Educating the key members of your own project team
  • Developing change management, reporting and record-keeping procedures and proforma documents to ensure you are not liable for breaching any of the legal requirements under the project's contractual regime
  • Employer imposed change, Suspension and Termination
  • Understanding how and when claims arise
  • Third party or Force Majeure events

Day Three: Effective Risk Migration 

  • Effective risk migration strategies
  • Outsourcing proactive, regular advice from legal experts familiar with your business, your project, your people, and your commercial objectives to secure early and objective identification of the specific key legal risks and opportunities facing your project
  • Using Contractual Risk Migration
  • Limitation of liability
    • Insurance
    • Currency / Commodity rates fluctuation provisions
    • Indemnity
    • Other risk migration provisions

Certificate

  • On successful completion of this training course, a PetroKnowledge Certificate will be awarded to the delegates

Frequently Asked Questions

How can I register for a training course?

  • To register online through our website, please click “Enroll Now” on the course page, complete and submit the form. A confirmation e-mail and instructions will be sent to the participant’s e-mail.
  • You may also get in touch with our Registration Team on
    +971 50 981 7386 | +971 2 557 7389 or send an email to reg@petroknowledge.com

When and how do I arrange payments?

  • Payments can be made in USD or UAE local currency AED (Arab Emirates Dirhams) either by Bank Transfer or by Credit Card. Our Bank Account details will be provided on the invoice.
  • Course fees are payable upon booking unless a valid, authorized Purchase Order is provided and accepted.
  • Invoices will be sent via email/courier to the ID/name and address provided.
  • The course fee shall be settled prior to course start date. Corporate payments with existing payment policy shall be relayed to us in advance.

When should I expect to receive confirmation of registration?

Upon successful registration online, enrolment on the respective training course will be confirmed by Registration Team by e-mail along with the invoice and joining instruction.

Is there a discount for more than one registrant/course?

For corporate fees and group registration, please send your query to info@petroknowledge.com.

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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.


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