INTRODUCTION TO THE COURSE
Effective contract management is essential for identifying, managing, and mitigating risks to ensure successful project outcomes for both owners and contractors. The Contract Risk Management & Compliance training course focuses on practical strategies for addressing contract risks in a post-pandemic world, emphasizing risk-bearing and sharing approaches over traditional avoidance tactics.
Participants in the Contract Risk Management & Compliance training course will explore critical concepts in risk mitigation, risk allocation, and strategic contract management. The training course equips professionals with the tools needed to recognize risks early, allocate responsibilities appropriately, and manage the consequences should risks materialize, ensuring stronger project delivery and organizational resilience.
Key highlights of the Contract Risk Management & Compliance training course include:
- Developing a critical understanding of risk mitigation techniques
- Shifting contract management from a tactical to a strategic focus
- Identifying and assessing potential risks in contracts and procurement activities
- Examining contract terms and conditions that effectively allocate risks
- Applying lessons learned from managing contracts during the COVID-19 pandemic
COURSE DETAILS
Objectives
Upon completing the Contract Risk Management & Compliance training course, participants will be able to:
- Understand the origins and impacts of contractual risks.
- Compare and apply various methods for identifying and assessing risks.
- Analyze approaches to risk allocation, avoidance, and mitigation.
- Evaluate different contract types and their effectiveness in transferring risks.
- Utilize contractual techniques to ensure strategic and effective risk allocation.
- Apply risk management practices during the life of a contract and throughout risk-bearing events.
Training Methodology
Participants will increase competencies through a variety of instructional methods including lecture by an experienced practitioner and consultant, cases / exercises, reviewing published articles, checklists, and group discussions covering current practices and their relationship to the implementation of new concepts. Emphasis will be placed on learning the lessons of the pandemic.
Delegates are encouraged to bring real problem examples with them, for discussion on a confidential basis, and to share their experience of particular issues in their company or industry. Time will be allowed for general discussions, and for one-to-one discussion with the trainer.
Organisational Impact
Organizations that invest in the Contract Risk Management & Compliance training course will realize significant benefits, including:
- Broader expertise among contract and project management teams, leading to more effective project execution.
- Reduced total cost of ownership through enhanced risk identification and mitigation strategies.
- Clearer allocation of risks, minimizing the likelihood and impact of disputes.
- Decreased project failures, costly changes, and budget overruns due to improved risk management practices.
- Better-informed decision-making regarding indemnities, warranties, guarantees, and insurance.
- Increased success rates of projects through structured and proactive risk management processes.
Personal Impact
Participants of the Contract Risk Management & Compliance training course will gain:
- A deeper understanding of risk identification, allocation, and mitigation techniques.
- Improved skills in selecting appropriate contractual structures to support strategic risk management.
- Enhanced ability to assess and allocate risks effectively within contracts.
- Broadened knowledge of alternative methods for managing and sharing risks.
- Greater competency in reducing the adverse effects of poorly managed risks on projects and organizations.
Who should Attend?
This KC Academy Contract Risk Management & Compliance 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
DAILY AGENDA
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
Certificate
- On successful completion of this training course, KC Academy Certificate will be awarded to the delegates.