Introduction

This seminar focuses on managing and mitigating risks in contracting to ensure successful project outcomes. Participants will gain insights into the risk mitigation process, strategies to elevate contracts to a strategic level, and skills to identify and allocate risks effectively. The seminar also provides examples of contract terms and conditions designed to address risk management comprehensively.

Objectives

• Provide an understanding of how risk arises·

• Compare different methods of identifying and assessing risk·

• Review the impacts of different approaches to risk allocation·

• Explore different Contract types to transfer risks·

• Consider the contractual techniques to ensure effective risk allocation·

• Review risk management techniques during the life of a contract·

Agenda Topics:

Day 1: Types and Management of Risk

• The Need for Contractual Relationships

• Defining Risk

• Categories of R for Both Sides of a Contract

• Risk Assessment Process

• Managing Risk

• Qualifying Suppliers

• Defining Internal Control

• Proportionality of Control

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

• Indemnities

• Cross Indemnities

• Insurance

Day 3: Risk-Related Terms & Conditions

• External events

• Force majeure

• Strikes and other labor disputes

• Risk and Title

• Use of ICC Incoterms

• Assignment and Novation

• 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”

• A review of some sample clauses from standard contracts, and other real documents

Day 5: Remedies When Bad Stuff Happens

• Mistakes and Misrepresentations

• Impracticability of Performance

• Remedies Generally

• Types of Remedies

• Liquated damages

• Warranties

• Cover

• Discussion of real examples (delegates are encouraged to bring real or made up examples for discussion)

• Review of seminar and question and answer session