An Intensive 3-day Training Course
Contract Risk Management
and Mitigation Measures
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We offer a variety of tailored training options, customized to meet your organisation's needs. Delivered anytime, anywhere, we make it easy to bring expert training directly to your team.
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 / Online Training Course, a PetroKnowledge Certificate / E-Certificate will be awarded to the delegates.
Frequently Asked Questions
Why PetroKnowledge?
PetroKnowledge is a globally recognized provider of training courses for oil and gas professionals, offering a wide range of specialized training courses designed to enhance knowledge, skills, and expertise in the energy sector. With courses tailored to meet the evolving demands of the oil and gas industry, PetroKnowledge helps professionals stay up-to-date with industry standards, technological advancements, and best practices.
Who are these training courses designed for?
Our courses are specifically developed for professionals in the oil and gas industry, including engineers, technical staff, managers, and other specialists looking to advance their careers. Whether you’re a seasoned expert or new to the sector, our training for oil and gas professionals is suited to individuals at all stages of their professional journey.
Are the courses delivered online or in person?
PetroKnowledge offers flexible learning solutions with both online courses and in-person training options. Online courses for oil and gas professionals provide the flexibility to learn from anywhere, while in-person courses offer a hands-on, interactive learning environment. Each training course page provides detailed information on the delivery format, allowing you to choose the option that best meets your learning style and schedule
Can I get a customized training course for my team?
Yes, PetroKnowledge offers customized in-house training solutions for organizations looking to upskill their teams. We work closely with companies to design bespoke training courses for oil and gas professionals that address specific challenges and objectives. Whether you need on-site training or online solutions, we can tailor the training courses to suit your organization’s needs.
Are there any prerequisites for attending a course?
Certain advanced training courses for oil and gas professionals may require prior experience or technical knowledge. These prerequisites ensure that participants can fully benefit from the course content. We recommend reviewing the course description on the relevant page to determine if any prerequisites apply to your selected course.
How can I enroll in a course?
Enrolling in one of our training courses for oil and gas professionals is simple and convenient. Navigate to the specific course page, click “Enroll Now,” and complete the registration form. You will receive a confirmation email with further details on how to proceed.
You may also get in touch with our Registration Team on
+971 50 981 7386 | +971 2 557 7389 or send an email to [email protected]
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.
Will I receive a certificate after completing the course?
Yes, upon successful completion of our courses for professionals in the oil and gas industry, you will receive an industry-recognized certificate from PetroKnowledge. This certification is designed to validate your skills and knowledge and can significantly enhance your professional credentials, boosting your career prospects in the competitive oil and gas sector.
When and how do I arrange payments?
We offer two convenient payment options:
- Bank Transfer – You can make payment via bank transfer. Once your registration is confirmed, you will receive an invoice with the banking details for the transfer. We would require you to supply a swift copy for us to confirm receipt of funds.
- Payment Link – Alternatively, we provide a secure payment link that you can use to complete your payment after your registration has been confirmed.
What is the refund or cancellation policy?
Our refund and cancellation policy varies depending on the course and circumstances. Generally, cancellations made at least 21 days before the training are eligible for a refund, less any administrative fees. If you have any specific inquiries about the cancellation or refund, don’t hesitate to contact our support team, who can assist with your booking and cancellation queries.
Is there a discount for more than one registrant/course?
For corporate fees and group registration, please send your query to [email protected].
