Whether you are in purchasing, contract management, subcontracts, project management, general management or sales, you are constantly involved with legal and contract principles, sometimes without even realizing it. Understanding contract law has become an essential part of conducting our daily business functions.

Too often the wording used in Contracts is not properly understood by those who are making decisions relating to those Contracts, and non-specialists are reluctant to get involved in the process of drafting and amending the documents which are critical to their company’s success. There may also be problems in assessing amendments proposed by the other party, and determining whether these are reasonable, or are eroding your company’s position. The course will deal with Contracts written in the English language, and follow principles widely used in international contracting.

This course will explain in step by step manner, how to handle Construction Claim, how to carry out its scrutiny & Evaluation including the assessment of claim Entitlement, its quantification, its sustainability & deposition. Participants will know how protect yourself from claims & litigation by following these steps & avoid paying unjustified claims that arise during construction projects.

Course Objectives

Upon successful completion of this course, the delegates will be able to:

• Determine contract structures and how and why contracts are drafted in particular ways
• Develop understanding of the legal principles behind contracts and some of the main clauses in different types of agreements
• Explain the commercial impact of particular provisions
• Differentiate between similar clauses in different international standards
• Develop your own “standard” clauses and understanding of when to accept proposed amendments, and when to reject them, including how to give clear reasons for such rejection
• Practice in amending documents to meet particular requirements including the use of special conditions
• Provide strategies and tactics for negotiating on possible contract amendments
• Explain how to use contract provisions to reduce the risk of disputes
• Understand how contracts are formed, know the major contract clauses, how and why disputes arise
• Use contract provisions to reduce the risk of disputes and find deficiencies in contract  documents  before  bidding and contract signing
• Prepare successful contract and fixed price clause and escalation clause
• Analyze and understand the contract document about change orders and variations
• Identify the common mistakes made in handing extra claims
• Understand the legal and technical aspects of claims
• Enumerate the types  of  claims,  filing  a  claim  and  supporting  documents needed

Who Should Attend?

This course is intended for planning engineers and supervisors, contract professionals, project engineers and project professionals, claims personnel and business audit officers, contract strategists, commercial professionals, purchasing officers and personnel, buyers, supply professionals. This course is also beneficial to government, institutional and private sector owners, architects/engineers and other design professionals, planners and contractor representatives: project managers, managers, contracting department personnel, procurement department personnel, contract administrations etc.

Course Outline

How and why Contracts are drafted

• Why we use contracts
• Formation of a Contract
• The key elements of a contract
• Oral or written?
• Terms and Conditions of contract
• Agency issues
• The basic structure of a contract
• Incorporating documents by reference
• Standard Forms
• Form of Agreement
• Principles of contract negotiation

Main Contract Clauses

• Obligation to deliver/perform
• Rework/re-performance
• Risk
• Title
• Compliance with law/change of law
• Indemnities
• Insurance
• Third parties
• Liability in negligence – relationship with contract conditions

 Main Contract Clauses - continued

• Variations and changes
• Product liability and defective goods - rejection
• Precedence of documents – Special Conditions
• Intellectual property
• Taxation
• Suspension and termination
• Acceptance and Certificates
• Payment
• Liquidated damages/penalties
• Limits of liability
• Guarantee/Warranty/Maintenance
• Conflict of Laws and Choice of Law Clauses 

 Other documents and Negotiations

• Letters of Intent or Award
• Bank and Insurance Bonds
• Letters of Comfort or Awareness
• Collateral warranties
• Alliance /Partnering Agreements
• “Side Letters”
• Finance arrangements 
• Negotiating contract qualifications and amendments

 Negotiation and Resolution of Disputes

• Contract negotiation - continued
• Dispute Resolution clauses
• Unequal bargaining positions
• Negotiation, compromise and settlement
• Litigation
• Arbitration