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ICTD International Centre for Training and Development

Resolving Contracts Disputes and Avoiding Construction Claims

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Description

Understanding contract law has become an essential part of conducting our daily business functions. 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.

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

Course Outline

Day 1

Introduction

  • Basic purpose of contracts

  • Basic contractual structures

  • Different types of contract for different construction activities

  • How and why disputes arise

Elements of Contract UAL Disputes

  • Scope of Work, The Drawings, The Specifications, The Bill of Quantities,

  • Contract Schedule and progress measurement

  • Main contract provisions and associated issues

  • Fixed price clause, escalation clause

  • Clarity in contract document about change orders and variations

  • How to avoid extra claims before they arise

  • How to reduce extra work claims if they arise

  • Termination and Suspension, Warranty

  • How to deal with disputes

  • Types of damages, Claims and Dispute resolution

  • Legal Issues, Owner’s liability, Contractor’s liability

Day 2

Constructions Claims and How to avoid them

  • Avoiding Construction Claims by Improving the Quality of

  • Drawings, Specifications and Bidding Documents Prepared by Owners and Consultants

  • Handling Changes in contract

  • Logging of changes

  • Certification of extra works

  • Handling delay claims, defect liabilities, penalties

  • Billing & recovery, retention money

  • Deficiency lists, Liquidated damages

  • How to reduce extra work claims if they arise

  • Common mistakes made in handing extra claims

  • Types of claims, filing a claim and supporting documents needed

  • Cost Support for the claim, negotiation

  • How to adjust claims against deficiency lists

  • Negotiating the claim

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

Day 3

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

Day 4

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

Day 5

Negotiation and Resolution of Disputes

  • Contract negotiation - continued

  • Dispute Resolution clauses

  • Unequal bargaining positions

  • Negotiation, compromise and settlement

  • Litigation

Arbitration

Course Methodology

A variety of methodologies will be used during the course that includes:

  • (30%) Based on Case Studies

  • (30%) Techniques

  • (30%) Role Play

  • (10%) Concepts

  • Pre-test and Post-test

  • Variety of Learning Methods

  • Lectures

  • Case Studies and Self Questionaires

  • Group Work

  • Discussion Presentation

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.

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