### Introduction

Effective contract and project management is essential for proactively identifying and controlling risks for both owners and contractors, ensuring that both parties are satisfied with the project outcome. While top-tier project management can’t eliminate risk entirely, it can and should highlight potential risks and opportunities, assign responsibility for managing these risks, and outline the consequences if they materialize.

**Course Highlights:**

– Transitioning from tactical/reactive to proactive/strategic contract and project management.
– In-depth understanding of the risk mitigation process.
– Comprehensive examination of threats and opportunities from both top-down and bottom-up perspectives using established risk management practices.
– Skills for allocating contract and procurement risks effectively.
– Early identification of warning signs related to cost overruns, schedule delays, and quality issues to minimize impact.

### Modules

This training course is divided into two modules:

**Module I: Contract Risk Management & Compliance**

**Module II: Project Risk Management & Compliance**

Each module can be taken independently, but participants will gain maximum benefit from attending both back-to-back in a two-week format.

### Objectives

The primary goals of this training course are to help delegates:

– Utilize techniques for identifying, analyzing, mitigating, and monitoring risks throughout the project lifecycle.
– Implement a practical six-step process for project risk management.
– Review the impact of different risk allocation approaches.
– Explore various contract types for risk transfer.
– Employ contractual strategies to ensure effective risk allocation.
– Develop effective risk monitoring plans and management strategies.

### Training Methodology

Participants will enhance their competencies through a mix of instructional methods, including lectures, exercises, article reviews, checklists, videos, and group discussions. A comprehensive training manual will support practical application and reinforcement.

Delegates are encouraged to bring real-world challenges for confidential discussion and to share their experiences. Time will also be allocated for general discussions and one-on-one consultations with the trainer.

### Organizational Impact

Organizations will benefit by:

– Enhancing the expertise of personnel involved in project and contract management, leading to more effective teams.
– Understanding and reducing the total cost of ownership by properly identifying and managing risks throughout the project lifecycle.
– Reducing the likelihood of contractor disputes through clear risk allocation, facilitating quicker and less costly resolutions when disputes arise.
– Minimizing project failures, poor quality, costly changes, and overruns through better risk management.
– Improving project success rates by understanding the relationship between scope, cost, and time.
– Gaining a better appreciation of contractual indemnities for improved decision-making in contract structures.

### Personal Impact

Participants will benefit from:

– Enhanced understanding of risk and opportunities through improved risk identification and assessment skills.
– Ability to manage multiple project risks with effective strategies.
– Integration of risk and opportunity considerations into future project plans.
– Improved skills in risk allocation and selection of suitable project processes to meet organizational goals.
– Reduced negative impacts of poorly managed risks on projects and the organization.
– Capability to identify and evaluate threats and opportunities in their projects.

### Who Should Attend?

This course is ideal for:

– Contracts, Tendering, Purchasing, Procurement, and Project Personnel
– Contract Administration, Engineering, Operational, and Maintenance Personnel
– Risk, Claims, Financial, and Audit Personnel
– Project Management Professionals
– Anyone involved in planning, evaluating, preparing, and managing tenders and contracts for the acquisition of materials, equipment, and services, particularly in organizations seeking high competency levels.

### Course Outline

**Module 1: Contract Risk Management & Compliance**

**Day 1: Types and Management of Risk**
– Understanding contractual relationships
– Defining and categorizing risks
– Risk assessment processes
– Managing risks before and during contracts
– Qualifying suppliers
– Negotiating risk-related terms
– Proportionality in internal controls

**Day 2: Minimizing and Transferring Risk**
– Contract types for risk transfer
– Firm fixed price vs. cost-reimbursable contracts
– Incentive contracts and award-fee pricing
– Terms, conditions, warranties, indemnities, and guarantees

**Day 3: Risk-Related Terms in a Post-Pandemic World**
– External events and force majeure
– Managing risks associated with subcontractors
– Use of ICC Incoterms
– Assignment, novation, and renegotiation considerations

**Day 4: Dealing with Financial Risks**
– Managing payment risks
– Addressing currency and economic risks
– Understanding liability distinctions

**Day 5: Remedies for Contractual Issues**
– Types of contractual remedies
– Addressing mistakes and misrepresentations
– Overview of dispute resolution

**Module 2: Project Risk Management & Compliance**

**Day 6: Risk Management Framework and Planning**
– Key definitions and PMBOK® processes
– Benefits of risk management

**Day 7: Risk Identification Process**
– Impact of project complexity on risk
– Risk identification techniques
– Managing risks through project estimating and earned value management

**Day 8: Risk Assessment Process**
– Qualitative and quantitative risk analysis techniques
– Managing project risks through integrity assurance

**Day 9: Risk Response Plan Development**
– Risk prioritization and response strategies
– Alternative responses and validation

**Day 10: Risk Response Control**
– Resource management and risk control tools
– Risk reporting and documentation
– Course summary and review session