INTRODUCTION TO THE COURSE
Effective contract and project management requires a proactive approach to identifying and controlling risks that could impact both owners and contractors. The Contract & Project Risk Management & Compliance training course provides participants with critical insights and practical techniques to anticipate potential threats, allocate responsibilities, and ensure project outcomes meet both parties’ expectations.
While no management process can eliminate risk entirely, world-class contract and project management practices can strategically identify, allocate, and mitigate risks. The Contract & Project Risk Management & Compliance training course equips participants to move beyond reactive tactics, promoting a proactive and strategic focus that enhances project success, minimizes disputes, and strengthens organizational resilience.
Key highlights of the Contract & Project Risk Management & Compliance training course include:
- Shifting project and contract management from tactical to strategic risk control
- Understanding risk mitigation strategies across the project lifecycle
- Analyzing threats and opportunities from both top-down and bottom-up perspectives
- Allocating contract and procurement risks effectively
- Identifying early warning signs of cost overruns, schedule delays, and quality issues
This training course is split into two modules:
- Module I - Contract Risk Management & Compliance
- Module II - Project Risk Management & Compliance
Each module is structured and can be taken as a stand-alone training course; however, delegates will maximise their benefits by taking Modules I, and II back-to-back as a 2-week training course.
COURSE DETAILS
Objectives
Upon completing the Contract & Project Risk Management & Compliance training course, participants will be able to:
- Apply practical techniques to identify, analyze, mitigate, and monitor risks throughout the project lifecycle.
- Implement a structured six-step process for managing project risks effectively.
- Evaluate the implications of various risk allocation strategies.
- Understand how different contract types can be utilized to transfer and manage risks.
- Develop and implement effective risk monitoring plans and management strategies.
- Enhance decision-making processes related to risk allocation and project success.
Training Methodology
Participants will increase competencies through a variety of instructional methods including lecture, exercises, reviewing published articles, checklists, videos, and group discussions. A comprehensive training course manual enabling practical application and reinforcement is provided.
Delegates are encouraged to bring real problem examples with them, for discussion on a confidential basis, and to share their experience of particular issues. Time will be allowed for general discussions, and for one-to-one discussion with the trainer.
Organisational Impact
Organizations supporting participation in the Contract & Project Risk Management & Compliance training course will experience significant benefits, including:
- Enhanced expertise among project and contract management teams, leading to more effective project delivery.
- Reduced total cost of ownership through improved risk identification and management practices.
- Clearer risk allocation, minimizing contractor disputes and enabling quicker, more cost-effective resolutions.
- Improved project outcomes through better management of scope, cost, and time relationships.
- Stronger contractual decision-making based on a deeper understanding of indemnities and risk transfer mechanisms.
- Decreased likelihood of project failures, quality issues, costly changes, and budget overruns.
Personal Impact
Participants of the Contract & Project Risk Management & Compliance training course will gain:
- Strengthened skills in identifying and assessing project risks and opportunities.
- Enhanced capability to manage multiple project risks with structured strategies.
- Improved ability to integrate risk management into project planning.
- Greater proficiency in allocating risks and selecting appropriate project and contract structures.
- Increased effectiveness in mitigating the negative impacts of poorly managed risks.
- The ability to evaluate threats and opportunities and weigh their impact on overall project success.
Who should Attend?
- 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
DAILY AGENDA
Module I: Contract Risk Management & Compliance
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 Processes
- Managing Risk Before and During the Contract
- Qualifying Suppliers
- Negotiating Terms that Carry Risk
- Internal Control and its Proportionality
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
- Terms, Conditions and Warranties
- Indemnities and Cross Indemnities
- Insurance and Guarantees
Day 3: Risk Related Terms & Conditions in a post-Pandemic World
- External Events
- Force Majeure
- Strikes and Other Labour Disputes
- Risk and Title
- Use of ICC Incoterms
- Assignment, Novation and Re-Negotiation
- 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
Day 5: Remedies When Bad Stuff Happens
- The nature of contractual remedies generally
- Mistakes and Misrepresentations
- Impracticability of Performance
- Types of Remedies
- Liquidated Damages
- Warranties
- An Overarching View of Dispute Resolution
- Review of Course, Questions and Answer Session
Module II: Project Risk Management & Compliance
Day 6: Risk Management Framework and Planning
- Key Definitions
- The PMBOK® Six Risk Management Processes
- Purpose & Benefits of Risk
- Responsibilities in Project Risk Management
- Integrating Risk Management into the Project Management Process
- Risk Management Planning
- Risk Planning Process
Day 7: Risk Identification Process
- The Effect of Project Macro-Environment on Risk
- The Effect of Project Complexity on Risk
- Risk Identification Techniques
- Managing Risk through Project Estimating
- Managing Risk through Earned Value Management
- Schedule Risk Management – Critical Path Method & PERT
Day 8: Risk Assessment Process
- Qualitative Risk Analysis
- Bow-Tie Risk Analysis Technique
- Probability/Impact Risk Matrix Technique
- Quantitative Risk Analysis
- Monte Carlo Simulation
- Decision Trees and Expected Monetary Value
- Managing Project Risks through Integrity Assurance
Day 9: Risk Response Plan Development
- Risk Prioritisation
- Risk Response Strategy Guidelines
- Response Strategies for Threats & Opportunities
- Response Planning & Analysis
- Alternative Responses
- Risk Response Validation
- Contingency & Management Risk Reserves
Day 10: Risk Response Control
- Resource Management
- Risk Control Guidelines
- Risk Control Inputs
- Risk Control Tools & Techniques
- Risk Control Outputs
- Risk Reporting & Documenting
- Course Summation & Work Session Review
Certificate
- On successful completion of this training course, KC Academy Certificate will be awarded to the delegates.