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Offered By:
PROMIS - Project Management Engineering Systems
Professional Development Hours: 30
Course Number: AEP8018/002
This course will share with the participants the positive and practical
steps that can be taken both at the outset and during the course of a contract
to prevent and minimize the number of claims.
Introduction
“Every contract imposes a duty of good and fair dealing in the performance of the contract, including an honest and sincere intention to fulfill one’s obligations”
These words capture the essence of the broad purpose of contract planning and administration. Therefore, good planning for successful contract execution requires four major elements:
- Proper, complete, clear and complementary set of tender documents during the tender stage, which in turn will make up the contract documents (your first life saver!)
- Fair and firm administration of the contract between parties for successful completion of the engineering and construction projects on time and within budget, and with minimal claims and disputes
- Avoidance and mitigation of detrimental claims during the contract period through good-faith negotiations and proper documentation
Workshop Objectives
In essence, the focus of this dynamic “highly participative” workshop is:
- To share with the participants the positive and practical steps that can be taken both at the outset (Tendering Stage), and during the course of a contract (i.e., Contract Management: Planning and Administration) to prevent and minimize the number of claims. These steps can do much to reduce the potential sources of disputes that can so easily have a damaging effect on the project, the first line of defence!
- To show effective and practical methods and techniques for dealing with any claims that do arise – techniques directed at the early and sensible resolution of claims so they do not result in bitter disputes that are costly in time, effort, and funds. This is your second line of defense!
Course Outline
Day One
- Preparing for Effective Contract Administration
- Contracting methods available
- Selecting the best contract type
- Contractor supplier pre-qualification
- Tender Procedures
- Types of tendering to consider
- Conflicts and ambiguities between Tender Documents
- Tender evaluation methods
- Weighted evaluation Tender evaluation
- Making the Award
Day Two
What is Contract Administration?
- The Contract Agreement
- Claims avoidance clauses
- Rules for interpreting contracts
- The Communication Process
- How to reduce or eliminate ambiguity, guarding against assumptions
- Project documentation – Your Life Saver!
- Before Construction starts
Day Three
The Tools of Contract Administration
- Organizing, administration and operations of contracts
- Schedule and progress
- Changes, variations and extra work
- Payment for work
- Subcontractors and suppliers
Day Four
Problems and solutions in contract administration
- Typical major claims and causes
- Expressed vs implied contract terms
- Delays and concurrent delays
- Changes/modifications and extra work
- Adverse physical conditions
- Recognizing and documenting claims
- Cost, time and event analysis
- Reserving contractor’s claims rights
Day Five
Claims Defense, Analysis, and Negotiation
- Claims Defenses
- Early recognition and analysis
- Factual defenses, legal defenses
- Analyzing the Claim
- Entitlement, Cause and Effect and Pricing (Evaluation)
- Negotiating a Settlement
- Specifying your goals and strategy
- The Good Faith essential
- Skills of contract negotiations techniques
- Negotiating the final price and agreement
- Putting all issues together
- Effective response of claims events
- Alternative Dispute Resolution (ADR)
Topic Areas and Industries
- Claims & Dispute Resolution
- Contract Management
- Cost Estimating
- Cost Indexing
- Cost/Schedule Control
- Decision & Risk Management
- Government & Public Works
- Information Technology
- Legal/Claims
- Planning & Scheduling
- Procurement
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