Construction Management: Contract Planning and Control, Project and Contract Close‐Out, and Final Settle
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Construction Management: Contract Planning and Control, Project and Contract Close‐Out, and Final Settle Course
Introduction:
Engineering and construction projects have a long-standing history marred by contractual disputes and conflicts. These issues have had detrimental effects on the efficiency and profitability of developments, failing to serve the best interests of both clients and contractors. The intricate nature of engineering and construction work, coupled with complex commercial arrangements, often contributes to the emergence of contractual problems.
The execution of engineering and construction projects involves intricate technical processes and intricate coordination among multiple stakeholders. The complexity of the work itself, which may involve various disciplines and specialized expertise, increases the likelihood of disputes arising. Additionally, the commercial arrangements and contractual agreements involved in these projects can be intricate, leading to potential misunderstandings, conflicting expectations, and disagreements.
The consequences of contractual disputes and conflicts are far-reaching. They can result in project delays, cost overruns, compromised quality, and damaged professional relationships. These issues hinder the overall success and profitability of engineering and construction projects, undermining the industry as a whole.
Recognizing the need for a resolution, efforts have been made to address and mitigate these contractual challenges. Industry organizations, legal professionals, and project management experts have developed frameworks, best practices, and alternative dispute resolution mechanisms to promote better contract management and mitigate conflicts.
In this course, we tackle the complexities of contractual disputes and conflicts in engineering and construction projects. We delve into the common causes of disputes, the impact on project outcomes, and the associated risks and costs. Moreover, we explore strategies for effective contract management, proactive dispute prevention, and efficient resolution when conflicts arise. By equipping participants with the necessary knowledge and tools, we aim to enhance their ability to navigate contractual challenges and promote successful project outcomes.
Join us in this course to gain a comprehensive understanding of contractual disputes and conflicts in engineering and construction projects. By exploring best practices and strategies for effective contract management, participants will be better equipped to mitigate risks, prevent conflicts, and foster mutually beneficial relationships between clients and contractors. Together, we can work towards improving the efficiency and profitability of engineering and construction developments.
Course Objectives:
The course has the following main objectives:
- 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
- Recognize the dangers that such approaches bring, and how to minimize problems
- Look at engineering and construction contracts in an international context
- Understand how to resolve disputes quickly and efficiently
Who Should Attend?
- 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 Outlines:
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
- And different regions/countries
- Issues with different legal systems
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
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 labor) markets
- Selecting the right index
- Call-off contracts
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
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