Construction Contract Administration From Start to Completion – Certified Program
Course Code: EM08
Course Objective
- Understand how contracts work, and why they sometimes cause problems
- Address some specific clauses and provisions that are a common source of problems
- Develop thinking around more collaborative approaches to working on engineering and construction contracts
- Recognise the dangers that such approaches bring, and how to minimise problems
- Look at engineering and construction contracting in an international context
- Understand how to resolve disputes quickly and efficiently
Target Audience
- Business Managers
- Commercial Staff
- Project Managers
- Project Engineers
- Procurement Staff
- Legal Staff
- All involved in disputes and their resolution
- All staff involved in selecting contracting strategies
- Staff new to engineering or construction contracting
- Experienced staff looking for a refresher, together with new ideas
- Staff from client / developer and contractor / subcontractor backgrounds
Course Outline
DAY 1: The Fundamentals of Engineering and Construction Contracts
- Why Contracts are necessary?
- How Contracts are formed?
- Particular issues with Engineering and Construction Contracts
- Use of Standard Forms
- FIDIC
- NEC
- LOGIC
- Differences in Bargaining Positions
- Problems with Competitive Tendering
- Problems with Different Industries – including between engineering and construction
- Different Regions / Countries
- Issues with Different Legal Systems
DAY 2: Some Major Problem Clauses in Engineering and Construction Contracts
- Design Responsibility
- Requiring Contractors to Warrant the Design of others
- Standard of Work
- Fitness for Purpose
- International / National / Company Standards
- Standards for Professional Services
- Variations
- Time
- Money
- Force Majeure
- Intellectual Property
- Limits of Liability
- Indemnities
- Insurance
- Some Minor Problems
- Notices
- Entire Agreement
- Incorporation by Reference
DAY 3: Traditional Approaches to Engineering and Construction Contracts
- Lump Sum / Fixed Price
- Bill of Quantities / Schedule of Rates
- Adding Incentive Fees
- Escalation
- Dealing with General Price Inflation
- Economic Price Adjustment
- Problems with volatile materials (or labour) markets
- Selecting the right index
- Call-off Contracts
DAY 4: Looking Beyond the Traditional Approaches
- Risk and Reward Structures
- Build Operate Transfer (and similar models)
- Open Book Approaches
- Collaborative Working
- Advantages
- Dangers – and how to avoid them
- This session will involve delegates in developing their own ideas as to different ways in which engineering and/or construction contracts could be structured, so that commercial drivers are focused on the goals of the parties, not on conflict
DAY 5: Disputes – Avoidance and Resolution
- How Disputes Arise
- Methods to Avoid Disputes, or Deal with them quickly as they arise
- Negotiation Techniques
- Traditional Third Party Approaches
- Courts (litigation)
- Arbitration
- Adjudication
- Some Alternative Approaches
- Mediation
- Conciliation
- Early Neutral Evaluation
- Expert Determination
- Dispute Review Boards and similar arrangements
- Pendulum Arbitration
- Mini-Arbitration
- Final Questions and Wrap-up
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