Introduction

Disputes in international contracts often stem from misunderstandings or failures to meet obligations. This program focuses on minimizing claims through effective contract management, evaluating and resolving disputes, and preventing them from arising. Participants will explore negotiation techniques, third-party interventions like arbitration and mediation, and innovative dispute resolution methods. Special attention is given to handling disputes involving foreign laws and systems. Practical insights will apply broadly to resolving contract-related conflicts.

Objectives

• Provide an understanding of how and why claims and counterclaims arise

• Explain the differences between claims and counterclaims

• Identify common causes of claims and disputes, and how to avoid them

• Discuss how to develop contracts management procedures to avoid disputes over claims and counterclaims, while resisting unjustified claims

• Enhance understanding of basic negotiation techniques to be used when resolving disputes

• Provide an understanding of some of the main methods of dispute resolution involving third parties

• Develop an understanding of Traditional and Alternative Dispute Resolution techniques, including different ways of resolving disputes without recourse to courts or arbitration

• Provide strategies and tactics for negotiating during disputes

• Explain how to use contract provisions to reduce the risk of claims and disputes

Target Audience

This program is designed for:

• Contract Managers and Commercial Managers
• Legal and Compliance Professionals
• Procurement and Supply Chain Managers
• Project Managers and Project Controls Professionals
• Construction and EPC Contract Specialists
• Claims Managers and Claims Analysts
• Dispute Resolution and Arbitration Practitioners
• Engineering and Operations Managers involved in contracts
• Risk Management Professionals
• Consultants working in contract administration and dispute management
• Professionals seeking to strengthen skills in claims handling, negotiation, and dispute resolution in international contracts

Outlines

Day 1: How Claims and Counterclaims Arise

• Causes of typical claims
• Poor drafting of requirements
• Lack of clarity in Scope of Work/Services
• Misunderstanding of legal and technical obligations
• Responsibility of Client vs Contractor/Supplier
• Deliberate misunderstanding
• Claims vs Counterclaims
• Rights of set-off
• Variations, extensions of time, and force majeure
• Key contractual provisions related to claims

Day 2: Types of Claims and Counterclaims

• Types of claims in construction and other industries
• Re-measure disputes
• Variations: valuation and entitlement disputes
• Breach of contract issues
• Quality of workmanship and rework
• Rejection of goods (full or partial)
• Liquidated damages and penalties
• Warranty claims
• Interface problems and responsibilities
• EPC and turnkey contract issues

Day 3: Presenting and Evaluating Claims and Counterclaims

• Requirements for claim submission (notices, timing, format)
• Time limits and their enforceability
• Claim documentation and supporting evidence
• Claim evaluation principles
• Identifying causes and warning signs of disputes
• Recording and reviewing claims
• Requests for additional information
• Settlement offers and negotiation
• Independent review and decision-making
• Managing legal involvement and costs

Day 4: Dispute Resolution (Part 1)

• Definition of disputes
• Internal dispute resolution mechanisms
• Win-win negotiation principles
• Interest-based negotiation
• Making offers and compromises
• Bargaining strategies
• Managing conflict and defusing tension
• Personality clashes
• Avoiding escalation of disputes
• Negotiation without prejudice

Day 5: Dispute Resolution (Part 2 – Legal & ADR Methods)

• Traditional dispute resolution methods
  • Litigation
  • Arbitration (domestic & international)
• Alternative Dispute Resolution (ADR):
  • Mediation
  • Med-Arb / Arb-Med
  • Adjudication
  • Expert determination
  • Early Neutral Evaluation
  • Dispute Review Boards
• Ethical considerations
• Documentation and audit trails
• Preventing disputes vs resolving disputes
• Practical negotiation role-play exercises
• Final review and wrap-up