Introduction
Effective contract drafting is crucial to minimize organizational risk, ensure smooth project execution, and prevent disputes. Poorly understood contract wording can negatively impact project performance and even lead to contract failure. This course equips participants with practical skills to draft, analyze, and manage contracts, tendering procedures, and correspondence, reflecting best practices from major international organizations.
Key highlights:
- Legal effectiveness and formation of contracts
- Selecting appropriate contract types and tender processes
- Key clauses focusing on risk, remedies, and insurance
- Securing performance of obligations
- Dispute avoidance and resolution
Course Objectives
By the end of this program, participants will be able to:
- Understand contract structures and rationale behind specific drafting approaches
- Explain the commercial impact of key contractual provisions
- Identify potential risks and learn how to avoid or mitigate them through proper drafting
- Understand how to prevent disputes and manage them effectively if they arise
Target Audience
- Legal advisors and in-house counsel
- Contract managers and administrators
- Procurement and tendering staff
- Project managers involved in contracts and correspondence
- Professionals responsible for drafting, reviewing, or managing contracts
Course Outline – 5 Days
Day 1 – The Importance of Contracts & Contract Formation
- The value of contracts and controlling the contract process
- Understanding the deal and negotiation strategies
- Offer and acceptance; battle of the forms
- Consideration, intention, oral vs written contracts
- Electronic contracts and due diligence
- Assessing financial stability
Day 2 – Tender Process & Contract Types
- Auctions, bids, and invitations to tender
- Requests for Proposal (RFP) and Quotation (RFQ)
- Pre-qualification and compliance
- Letters of Award, Heads of Terms, Letters of Comfort
- Selecting contract types: advantages, disadvantages, and modern approaches
- Economic Price Adjustment clauses, bonds, guarantees, and legal compliance
Day 3 – Main Contract Clauses
- Obligations to deliver and perform; subcontractor management
- Monitoring, milestones, and securing payment
- Letters of Credit and Parent Company Guarantees
- Time and place of delivery; transfer of title and risk (ICC Incoterms)
- Retention of title clauses; importance of “time of the essence”
- Insurance, indemnities, liquidated damages, and penalties
Day 4 – Key Considerations & Commissioning Process
- Handling variations and changes; liability beyond the contract
- Intellectual property rights considerations
- Contract termination; limiting liability and warranties
- Applicable law and final contract review/closeout process
Day 5 – Dispute Resolution & Practical Review
- Compromise and settlement approaches
- Dispute resolution clauses, litigation, arbitration, and modern alternatives
- Mediation, conciliation, early neutral evaluation, expert determination
- Final Q&A, case studies, and review of practical applications
