Course details

Overview ?

The Course

Commercial and business relationships are based on contracts of one type or another. These are becoming increasingly complex, and as trade becomes ever more international, the differences in approach between different legal and contracting systems becomes a greater issue. All business professionals need to understand what a contract does (and does not) require them and the other party to the contract to do, and the consequences for both parties of any failure. This course is intended to provide an understanding of contracting in the English language, but in an international context.

The Goals

To enable delegates to improve their understanding of the role of contracts within a business, and how strategies can be developed to improve the commercial outcomes, and the management of contracts. The course will also give delegates the opportunity to consider the latest international thinking in dispute resolution, and how this can be used in everyday business life to reduce conflict and the costs and delays associated with more conventional approaches

The Delegates

Representatives of all functional disciplines would benefit from this course. The course is particularly recommended for actual or potential purchasing ,contracts or project professionals, and for anyone who contributes to projects, or is involved in the management of a business unit.

The Process

The training methodology will be a combination of conventional teaching, supported by real examples and case studies. Delegates will also be given the chance to work on short exercises to develop their skills, and encouraged to discuss real problems from within their organizations or elsewhere. Delegates will be encouraged to look at contractual issues and try out thinking on new ideas in a safe environment

The Benefits

Develop an understanding of the role of contracts in the business world Explain how contracts are structured
Examine current thinking on contracting structures in an international context
Improve understanding of the main terms and conditions of contracts
Understand the importance of change management and control
Develop appreciation of the collateral documents that work alongside contracts; including bonds, guarantees, letters of intent etc.
Review the latest international thinking in alternative methods of dispute resolution

The Results

Improved ability of delegates to understand commercial issues relating to contracts
A wider choice of potential contracting strategies
Improved ability for professionals to instruct and communicate with legal departments
Better understanding of the role of bonds and guarantees in a contracting strategy
Increased control of change
A wider choice of dispute resolution methods
Reduction in costs and delays associated with dispute resolution
Improved relationships with suppliers and contractors as a result of reducing conflict

The Core Competencies

Strategic planning
Contract selection and drafting
Ability to instruct and manage lawyers
Commercial management
Risk assessment and management
Negotiation skills
Dispute resolution

The Programme Content

Day One

What are contracts and how are they created?

The need for contractual relationships
What is needed to create a valid contract?
- Offer and acceptance
- Intention to create a legal relationship
- Written or oral?
- Other legal formalities in different countries
- Signing and sealing
- Witnesses
- Authority to sign
- How to prove authority
The tender process
Involvement of agents
What happens if there is no contract, but work is carried out anyway?
Making contracts enforceable – with particular emphasis on the international context

Day Two

Structure of contracts

Form of Agreement
General Terms and Conditions
Special Terms and Conditions
Schedules or Appendices
Title (ownership) and risk of damage
- When does it transfer?
- Use of ICC INCOTERMS
Notices and other formalities
Which law and which courts?
Different contractual structures
Traditional
New structures used in the Middle East
New structures not widely used in the Middle East

Day Three

Collateral documents

Bonds and guarantees
- Tender Bonds
- Advance Payment Bonds
- Performance Bonds
- Warranty Bonds
- Parent Company Guarantees
Retention/Withholding
Retention Bonds
Letters of intent
Letters of award
Letters of comfort or awareness
Types
Who should carry the cover?
How should you manage claims?
Are banks or insurance companies good enough security?
Insurance policies
Assessing the need for financial security in the current economic climate

Day Four

Changes to the Contract documents
- Need for consent
- Assignment/Novation explained and distinguished
- Waiver
Changes to the scope
Variation clauses
Notice provisions
Valuation of variations and changes
Claims – what they are, and how they arise
Delay caused by client
Delay caused by contractor/supplier
Force majeure
Delay and disruption

Day Five

Resolving Disputes

Negotiation
Staged dispute resolution clauses
Litigation
Arbitration
New best practices in dispute resolution
Mediation
Conciliation
Early neutral evaluation
Expert determination
Mini-arbitration
Pendulum arbitration
Final questions and review of course

Day 1

Day 2

Day 3

Day 4

Day 5

Training Methodology

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