Contract Strategy, Planning, and Claims Management

Introduction

The Contract Strategy, Planning, and Claims Management course is designed for professionals involved in the management, negotiation, and execution of contracts, including project managers, contract managers, engineers, and legal advisors in construction, engineering, and infrastructure industries. This five-day course will focus on the critical aspects of contract strategy, effective planning, and handling claims management within the scope of large-scale projects. Participants will learn how to develop robust contract strategies, plan contracts effectively to mitigate risks, and manage claims that arise during project execution. The course will cover key topics such as the selection of contract types, understanding terms and conditions, resolving disputes, and minimizing the potential for claims through proactive planning.

Course Objectives

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

1. Develop Effective Contract Strategies: Understand how to choose and develop the most appropriate contract strategy for various types of projects.
2. Plan and Negotiate Contracts: Learn how to plan, draft, and negotiate contracts that align with project goals, minimize risks, and ensure clarity.
3. Understand Contract Types and Their Application: Familiarize themselves with various contract types (e.g., FIDIC, EPC, lump-sum) and their pros and cons.
4. Identify and Mitigate Risks in Contracts: Learn techniques to identify and mitigate risks in contract terms, project execution, and deliverables.
5. Manage Claims Effectively: Develop strategies to prevent, manage, and resolve claims that arise during project execution, including understanding claims processes and documentation.
6. Implement Dispute Resolution Mechanisms: Understand alternative dispute resolution methods, such as arbitration, mediation, and adjudication.
7. Monitor and Control Contract Performance: Learn how to monitor the performance of contracts throughout the project lifecycle to ensure compliance and avoid disputes.
8. Ensure Legal and Regulatory Compliance: Gain an understanding of the legal and regulatory frameworks that govern contracts and claims in construction and infrastructure projects.

Course Outline

Day 1: Introduction to Contract Strategy and Types

• Overview of Contract Management: Key concepts, goals, and responsibilities in contract management
• Contract Strategy: How to develop a strategy for selecting the right contract type based on project scope, risks, and stakeholder needs
• Types of Contracts: Lump Sum, Unit Rate, Cost-Plus, Time and Material, and Design-Build contracts
• Introduction to FIDIC and Other Standard Forms: Understanding FIDIC contracts, NEC, and other industry standards
• Pros and Cons of Different Contract Types: How to select the best strategy for your project’s needs
• Case Study: Choosing the Right Contract Strategy for a Complex Project

Day 2: Planning and Negotiating Contracts

• Contract Planning: Steps to develop a comprehensive contract plan, including risk assessment, scope, deliverables, and timelines
• Key Contract Clauses: Identifying essential clauses such as terms of payment, warranties, indemnities, and termination conditions
• Negotiating Contracts: Techniques for effective negotiation and stakeholder alignment
• Risk Allocation in Contracts: Balancing risk between parties and allocating risk in a way that is fair and manageable
• Drafting Clear and Concise Contracts: Best practices for writing contracts that are clear, legally sound, and protect all parties
• Workshop: Contract Negotiation Simulation – Identifying Key Terms and Reaching Agreement

Day 3: Risk Management and Claims Prevention in Contracts

• Risk Identification and Mitigation: Techniques for identifying potential risks and implementing mitigation strategies
• Force Majeure and Unforeseen Circumstances: Addressing and managing events beyond control within contracts
• Prevention of Claims: How to prevent claims through effective contract drafting, communication, and documentation
• Contract Monitoring: Techniques for tracking contract performance and compliance to prevent disputes
• Change Orders and Variations: Managing scope changes, variations, and cost adjustments within contracts
• Group Exercise: Identifying Risks and Developing Mitigation Strategies for a Sample Project

Day 4: Claims Management and Dispute Resolution

• Claims Management Overview: Understanding claims, disputes, and how they arise during project execution
• Types of Claims: Delays, cost overruns, breach of contract, and defective work
• Claim Documentation: How to document and present claims effectively, including the use of claims logs and reports
• Claims Resolution Strategies: Negotiating settlements, alternative dispute resolution (ADR), and formal dispute resolution mechanisms
• Dispute Resolution Mechanisms: Mediation, arbitration, adjudication, and litigation – choosing the right process for resolving disputes
• Workshop: Preparing a Claim Report and Strategy for Resolving Disputes

Day 5: Monitoring Contract Performance and Ensuring Compliance

• Monitoring Contract Performance: Techniques for tracking deliverables, performance metrics, and ensuring compliance throughout the project
• Key Performance Indicators (KPIs) for Contract Management: Metrics for monitoring contract success, timelines, and quality
• Ensuring Legal and Regulatory Compliance: Understanding local and international regulations affecting contracts in construction and infrastructure
• Lessons Learned from Claims and Disputes: Learning from past projects and integrating lessons into future contracts
• Managing Contract Closeout: Finalizing contract completion, handover, and any remaining claims or disputes
• Final Group Exercise: Developing a Comprehensive Contract Strategy and Claims Management Plan for a Large-Scale Project
• Course Recap and Final Assessment