Introduction

Construction projects often face contractual disputes that reduce efficiency, delay delivery, and erode profitability for both clients and contractors. These challenges stem from the complex nature of construction work, varied legal systems, and the high-risk commercial environment. This program equips participants with the knowledge and practical tools to identify common contractual pitfalls, manage risks effectively, and adopt collaborative approaches that minimize conflict and maximize project outcomes.

The course emphasizes international perspectives, standard forms of contracts, real-world examples, and dispute resolution methods, enabling participants to develop a balanced, practical understanding of construction contracting.

Objectives

By the end of this program, participants will be able to:

• Understand how construction contracts work and why problems frequently arise.

• Identify key clauses and provisions that are a common source of disputes.

• Apply collaborative approaches to reduce conflict while recognizing associated risks.

• Compare traditional contracting approaches with modern alternatives.

• Address construction contracting in an international and multi-legal context.

• Resolve disputes quickly and efficiently through negotiation or third-party mechanisms.

Training Methodology

• Trainer-led discussions with real project case studies.

• Group exercises to reframe thinking and develop collaborative models.

• Scenario-based learning and problem-solving activities.

• Review of international contract standards (FIDIC, NEC, LOGIC).

Organizational Impact

• Improved understanding of contractual risks and opportunities.

• Stronger communication between legal and commercial teams.

• Broader contracting options for project delivery.

• Better dispute resolution and reduced project delays.

• Enhanced profitability through conflict reduction and efficiency gains.

Personal Impact

• Deeper appreciation of problematic contract clauses and ways to mitigate risks.

• Broader knowledge of contracting models and global practices.

• Stronger negotiation and dispute resolution skills.

• Career development through advanced contract management expertise.

Training Outlines

Day 1

Fundamentals of Construction Contracts

• Why contracts are necessary in construction projects.

• How contracts are formed and their unique features in construction.

• Introduction to standard forms (FIDIC, NEC, LOGIC).

• Issues with tendering, bargaining positions, and industry/region differences.

• International perspectives: challenges across legal systems.
  Case discussion: Why contracts so often cause disputes.

Day 2

Problem Clauses and Risk Areas

• Major problematic clauses:

  • Design responsibility & warranties.

  • Standards of work and fitness for purpose.

  • Variations, time, money, and force majeure.

  • Intellectual property, liability limits, indemnities, insurance.

• Minor clauses: notices, entire agreement, incorporation by reference.
  Exercise: Reviewing real contract clauses and identifying risks.

Day 3

Traditional Approaches in Construction Contracts

• Lump sum / fixed price vs. bill of quantities.

• Incentive fees and escalation clauses.

• Economic price adjustments and volatile markets.

• Call-off contracts and flexibility in procurement.

• Selecting indexes for pricing adjustments.
  Case study: Impact of pricing models on project profitability.

Day 4

Collaborative Approaches and New Models

• Risk and reward structures.

• Build-Operate-Transfer (BOT) and related models.

• Open book approaches and collaborative contracting.

• Advantages and risks of collaboration, and how to mitigate them.
  Group exercise: Designing a collaborative contract model that aligns goals of all parties.

Day 5

Dispute Avoidance and Resolution

• How disputes arise in construction projects.

• Techniques for dispute avoidance and early intervention.

• Negotiation strategies for construction disputes.

• Formal resolution: litigation, arbitration, adjudication.

• Alternative dispute resolution (ADR): mediation, conciliation, ENE, expert determination, dispute boards, mini-arbitration.
  Final workshop: Choosing the best dispute resolution method for different case scenarios.