Contract & Project Risk Management & Compliance

Overview:

Introduction:

One of the critical outcomes of contract and project management is to ensure that risks to owners and contractor are identified and controlled in a proactive way so that both parties are satisfied with the project outcome. While world class project and contract management cannot, of itself, make risk “go away”, it can, and should, identify the risks and opportunities, determine who is responsible for managing each individual risk, and for the consequences should the risk occur.

Course Objectives:

At the end of this conference, the participants will be able to:

• Knowledge to move contracts and project management from the tactical/reactive to the more  important proactive/strategic focus
• Critical understanding of the risk mitigation process 
• How to examine both the threats and opportunities facing contracts and projects from both a top-down and bottom-up perspective using a pron risk management processes
• Skills in allocating contract and procurement risk
• Ability to identify the warning signs of cost overruns, schedule delays, and poor quality, as early as possible in the project to minimize or mitigate the impact.
• Apply useful techniques in identifying, analyzing, mitigation and monitoring risks in the project 
• Use a practical, six-step process to manage project risk
• Consider the contractual techniques to ensure effective risk allocation
• Learn how to create an effective risk monitoring plan and risk management strategies
• Review the impacts of different approaches to risk allocation

Targeted Audience:

• 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

Conference Outlines:

Unit 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
• Page 4 of 6 Defining Internal Control
•  Proportionality of Control

Unit 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

Unit 3: Risk-Related Terms & Conditions:

• External Events
• Force Majeure
• Strikes and Other Labour 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

Unit 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

Unit 5: Remedies When Bad Stuff Happens:

• Mistakes and Misrepresentations
• Impracticability of Performance
• Remedies Generally
• Types of Remedies
• Liquated Damages
• Page 5 of 6 Warranties
• Cover
• Discussion of Real Examples (delegates are encouraged to bring real or made-up examples for  discussion)

Unit 6: Risk Management Framework and Planning:

• Key Definitions
• The PMBOK® Six Risk Management Processes
• Purpose & Benefits of Risk
• Responsibilities in Project Risk Management
• Integrating Risk Management into the Project Management Process
• Risk Management Planning
• Risk Planning ProcessA

Unit 7: Risk Identification Processes:

• Project Context & Stakeholders
• Risk Identification Inputs
• Risk Identification Tools & Techniques
• Risk Identification Outputs

Unit 8: Risk Assessment Process

• Project Estimating Techniques
• Schedule Diagramming - Critical Path Method (CPM) 
• Project Evaluation & Review Technique (PERT)
• Qualitative Risk Analysis
• Quantitative Risk Analysis

Unit 9: Risk Response Plan Development:

• Risk Prioritisation
• Risk Response Strategy Guidelines
• Response Strategies for Threats & Opportunities
• Response Planning & Analysis
• Alternative Responses
• Response Validation
• Reserves - Contingency & Management