Contract Construction Management

Introduction

The Contract Construction Management course is designed for professionals involved in managing construction projects, including project managers, contract managers, engineers, and construction specialists. This five-day course will provide an in-depth understanding of managing contracts in construction projects, focusing on the vital aspects of contract administration, project planning, cost management, risk management, and dispute resolution. Participants will gain practical knowledge in navigating the complexities of construction contracts, understanding the roles and responsibilities of various stakeholders, and ensuring project success through effective contract management. The course will also cover key contract types, legal aspects, and the best practices to achieve project objectives, on time, within budget, and in compliance with relevant laws and regulations.

Course Objectives

By the end of this five-day course, participants will be able to:

1. Understand the Key Aspects of Construction Contracts: Gain a clear understanding of the different types of construction contracts and the critical components of each.
2. Effectively Manage Contract Administration: Learn how to manage the administrative aspects of contracts, including documentation, changes, and compliance with contractual obligations.
3. Navigate Risk Management in Construction Contracts: Understand how to identify, assess, and mitigate risks in construction projects and manage them within the contract framework.
4. Implement Project Planning and Cost Control Techniques: Learn how to effectively plan and control costs within the context of a construction contract.
5. Handle Contractual Disputes and Claims: Develop the skills to manage disputes, claims, and negotiations, using alternative dispute resolution (ADR) techniques, mediation, and arbitration.
6. Ensure Compliance and Legal Considerations: Understand legal requirements, regulations, and standards for construction contracts, and ensure compliance throughout the project lifecycle.
7. Monitor and Evaluate Contract Performance: Learn how to monitor and evaluate the performance of construction contracts to ensure timely delivery, quality standards, and budget adherence.
8. Manage Stakeholder Relationships: Understand the roles and responsibilities of contractors, clients, subcontractors, and consultants, and how to manage these relationships effectively.

Course Outline

Day 1: Introduction to Construction Contracts

• Overview of Construction Contract Management: Roles and responsibilities of contract managers
• Types of Construction Contracts: Lump Sum, Cost-Plus, Unit Rate, Design-Build, and other standard contracts
• Key Components of a Construction Contract: Scope of work, terms and conditions, payment schedules, warranties, and dispute resolution mechanisms
• Contractual Relationships: Understanding the relationships between the client, contractor, subcontractors, and suppliers
• Contract Negotiation and Risk Allocation: How to negotiate terms and allocate risks in construction contracts
• Case Study: Reviewing a typical construction contract to identify key elements and obligations

Day 2: Contract Administration and Project Planning

• Contract Administration: Managing the documentation and processes during the project lifecycle
• Change Orders and Variations: Handling changes to the scope of work and associated costs and timelines
• Contract Compliance: Ensuring adherence to contract terms and conditions throughout the project
• Effective Project Planning: Developing detailed project schedules, timelines, and resource plans
• Cost Control and Budget Management: Techniques for tracking and controlling costs, including cost estimation, budget forecasting, and cash flow management
• Workshop: Creating a project plan with a focus on contract terms and compliance

Day 3: Risk Management in Construction Contracts

• Risk Identification and Analysis: Identifying potential risks in construction contracts and project execution
• Risk Allocation and Mitigation: How to allocate and manage risks through contractual terms, insurance, and bonds
• Managing Delays and Disruptions: Understanding common causes of delays and how to mitigate their impact
• Force Majeure and Unforeseen Circumstances: Addressing unforeseen events that could affect contract performance (e.g., weather, strikes)
• Monitoring Risk During Construction: Continuous risk management during the execution of the project
• Group Exercise: Risk management planning for a construction project scenario

Day 4: Claims Management and Dispute Resolution

• Claims in Construction Contracts: Understanding the nature of claims and how they arise in construction projects
• Documenting and Managing Claims: Best practices for documenting and submitting claims for delays, variations, and cost overruns
• Dispute Resolution Mechanisms: Alternative dispute resolution (ADR), mediation, arbitration, and litigation
• Resolving Claims Without Litigation: Strategies for negotiating settlements and avoiding costly disputes
• Understanding FIDIC and Other Standard Forms: Claims management within common international construction contracts (e.g., FIDIC, NEC)
• Role of Project Managers in Managing Claims: How to identify potential claims early and take steps to avoid escalation
• Workshop: Simulating a claims resolution process using real-world scenarios

Day 5: Contract Performance Monitoring and Legal Considerations

• Monitoring Construction Contract Performance: Tools and techniques for tracking progress, quality, and compliance with contract terms
• Key Performance Indicators (KPIs): Metrics to evaluate project success in terms of time, cost, quality, and safety
• Legal Considerations in Construction Contracts: Understanding laws and regulations governing construction contracts, including local and international standards
• Project Handover and Closeout: Best practices for completing a project and ensuring smooth handover to the client
• Final Project Evaluation and Contract Completion: How to close out a contract, ensure final payments, and address any remaining issues
• Review and Course Summary: Key takeaways and actionable strategies for effective contract construction management
• Final Assessment: A comprehensive assessment covering contract management, planning, risk management, and dispute resolution