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.

Duration        10 Days

Target 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.

Objectives

The training will enable participants to.

• Apply useful techniques in identifying, analyzing, mitigation and monitoring risks in the project life cycle.
• Use a practical, six-step process to manage project 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.
• Learn how to create an effective risk monitoring plan and risk management strategies.

Course Outline

Types And Management of Risk

• The Need for Contractual Relationships
• Defining Risk
• Categories of Risk for Both Sides of a Contract
• Risk Assessment Processes
• Managing Risk Before and During the Contract
• Qualifying Suppliers
• Negotiating Terms that Carry Risk
•  Internal Control and its Proportionality

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
• Terms, Conditions and Warranties
• Indemnities and Cross Indemnities
• Insurance and Guarantees

Risk Related Terms & Conditions in a post-Pandemic World

• External Events
• Force Majeure
• Strikes and Other Labour Disputes
• Risk and Title
• Use of ICC Incoterms
• Assignment, Novation and Re-Negotiation
• Other Clauses that Need to Flow Down to Sub-contractors.
• Risks Associated with Sub-Contractors

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

Remedies When Bad Stuff Happens

• The nature of contractual remedies generally
• Mistakes and Misrepresentations
• Impracticability of Performance
• Types of Remedies
• Liquidated Damages
• Warranties
• An Overarching View of Dispute Resolution
• Review of Course, Questions and Answer Session

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 Process

Risk Identification Process

• The Effect of Project Macro-Environment on Risk
• The Effect of Project Complexity on Risk
• Risk Identification Techniques
• Managing Risk through Project Estimating
• Managing Risk through Earned Value Management
• Schedule Risk Management – Critical Path Method & PERT

Risk Assessment Process

• Qualitative Risk Analysis
• Bow-Tie Risk Analysis Technique
• Probability/Impact Risk Matrix Technique
• Quantitative Risk Analysis
• Monte Carlo Simulation
• Decision Trees and Expected Monetary Value
• Managing Project Risks through Integrity Assurance

Risk Response Plan Development

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

Risk Response Control

• Resource Management
• Risk Control Guidelines
• Risk Control Inputs
• Risk Control Tools & Techniques
• Risk Control Outputs
• Risk Reporting & Documenting
• Course Summation & Work Session Review

Certification

• Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

Training Venue

• Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

Airport Pick Up and Accommodation

• Airport pick up and accommodation is arranged upon request.

Terms Of Payment

• Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent via email.