## INTRODUCTION

A key function of contracting is to identify and manage risks to ensure that both owners and contractors are satisfied with the project outcomes. In the context of a post-pandemic world, analyzing risks and developing effective management strategies is central to this training course. Emphasizing coping mechanisms, understanding risk-sharing policies, and accepting the realities of risk-bearing—rather than attempting to divert or avoid risk—are essential for modern contract management. Contract professionals must be equipped to determine responsibility for individual risks and to handle the consequences if those risks materialize.

### Course Highlights

This GLOMACS Contract Risk Management & Compliance training course will cover:

– A comprehensive understanding of the risk mitigation process
– Strategies for transitioning contracts from tactical to strategic focus
– Skills for identifying potential risks
– Techniques for allocating contract and procurement risks
– Real-world examples of contract terms that allocate risk
– Insights gained from the COVID-19 experience

### Objectives

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

– Understand how risk arises in contracting
– Compare various methods for identifying and assessing risks
– Review different approaches to risk allocation, avoidance, and confrontation
– Explore contract types that facilitate risk transfer
– Consider contractual techniques for effective risk allocation
– Review risk management practices throughout the life of a contract and beyond

### Training Methodology

Participants will enhance their skills through a mix of instructional methods, including lectures from experienced practitioners, case studies, published articles, checklists, and group discussions that connect current practices with new concepts. There will be a strong emphasis on lessons learned during the pandemic.

Attendees are encouraged to bring real-world examples for confidential discussion and to share their experiences related to specific issues in their organizations. Ample time will be allocated for general discussions and one-on-one consultations with the trainer.

### Organizational Impact

Organizations will benefit by:

– Expanding the expertise of personnel involved in contract development and management, leading to more effective project and contract management teams
– Understanding and reducing the total cost of ownership through better risk identification and management
– Minimizing disputes through clear risk allocation, ensuring quicker and less costly resolutions
– Reducing project failures, costly changes, and overruns caused by inadequate risk management
– Implementing enhanced risk management strategies that improve overall project success
– Gaining a deeper understanding of contractual indemnities, warranties, guarantees, and insurance for better decision-making regarding contract structures and risk transfer

### Personal Impact

Attendees will benefit from this training by:

– Gaining a deeper understanding of risk
– Enhancing their ability to allocate risk and select appropriate contractual regimes
– Developing skills for risk identification and assessment
– Increasing awareness of alternative methods for risk allocation or sharing
– Improving approaches to managing risk during contracts and in risk-bearing situations
– Enhancing their capacity to mitigate the negative impacts of poorly managed risks on projects or organizations

### WHO SHOULD ATTEND?

This GLOMACS Contract Risk Management & Compliance training course is suitable for a wide range of professionals, including:

– Personnel involved in Contracts, Tendering, Purchasing, Procurement, and Project Management
– Contract Administration, Engineering, Operational, and Maintenance staff
– Risk, Claims, Financial, and Audit professionals
– Project Management Professionals
– Anyone involved in the planning, evaluation, preparation, and management of tenders, specifications, awards, and contracts related to the acquisition of materials, equipment, and services, particularly in organizations that prioritize high competency levels in these areas.

### Course Outline

**DAY 1: Types and Management of Risk**
– The Need for Contractual Relationships
– Defining Risk
– Categories of Risk for Both Parties
– Risk Assessment Processes
– Managing Risk Before and During the Contract
– Qualifying Suppliers
– Negotiating Risk-Related Terms
– Internal Control and Proportionality

**DAY 2: Minimizing and Transferring Risk**
– Risk Transfer through Contract Types
– Firm Fixed Price or Lump Sum Contracts
– Cost Reimbursable Contracts
– Incentive Contracts
– Award-Fee Pricing Arrangements
– Terms, Conditions, and Warranties
– Indemnities and Cross Indemnities
– Insurance and Guarantees

**DAY 3: Risk-Related Terms & Conditions in a Post-Pandemic World**
– External Events
– Force Majeure
– Strikes and Labour Disputes
– Risk and Title
– ICC Incoterms Usage
– Assignment, Novation, and Re-Negotiation
– Subcontractor Risk Management

**DAY 4: Dealing with Financial Risks**
– Payment-Related Risks
– Currency Risk
– Economic Risk
– Fraud and Corruption
– Limiting or Excluding Liability
– Distinctions between Contractual Liability and General Law
– Gross Negligence

**DAY 5: Remedies for Adverse Situations**
– Nature of Contractual Remedies
– Mistakes and Misrepresentations
– Impracticability of Performance
– Types of Remedies
– Liquidated Damages
– Warranties
– Overview of Dispute Resolution
– Course Review and Q&A Session