Contract Risk Management & Compliance
Professional training on identifying, allocating, and managing contractual risks effectively.
Course Overview
This training course is designed to equip professionals with the knowledge and skills required to identify, assess, and manage risks effectively within contractual relationships. In modern business environments—especially in the post-pandemic context—risk is an inherent element of contracting, and its proper allocation, mitigation, and management are critical to ensuring successful project outcomes.
Participants will explore practical strategies for risk identification, assessment, and allocation, moving beyond simple avoidance or transfer to implement shared responsibility and proactive risk management approaches. The course emphasizes the responsibilities of both owners and contractors in managing risks, integrating lessons from recent global disruptions to enhance resilience and decision-making in contract administration.
Course Objectives
By the end of this training, participants will be able to:
- Understand the origins and nature of risk in contractual arrangements.
- Apply structured methods for risk identification, assessment, and mitigation.
- Review and select appropriate risk allocation strategies, including avoidance, sharing, and transfer.
- Analyse contract types and clauses that allocate risk, including indemnities, warranties, guarantees, and insurance provisions.
- Implement effective risk management techniques throughout the contract lifecycle.
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Incorporate post-pandemic lessons into risk planning and contingency strategies.
Course Audience
This course is suitable for professionals involved in contract management, project management, procurement, and risk oversight, including:
- Contracts, Tendering, Procurement, and Project Personnel
- Contract Administration, Engineering, and Operational Teams
- Risk, Claims, Financial, and Audit Professionals
- Project Managers and Decision Makers overseeing contracts and procurement processes
- Professionals responsible for planning, evaluation, and management of contracts for goods, equipment, or services
Course Methodology
The course uses a combination of interactive adult-learning methodologies, including:
- Expert-led lectures with insights from practical contracting experience
- Case studies and real-world examples illustrating successful and failed risk management strategies
- Group discussions, problem-solving exercises, and confidential peer sharing
- Analysis of key contract clauses, risk allocation mechanisms, and post-pandemic contract management adaptations
- One-to-one feedback sessions to address specific organizational or industry challenges
Course Outline
Day One: Types and Management of Risk
- Understanding contractual relationships and defining risk
- Categories of risk for owners and contractors
- Risk assessment processes and internal controls
- Negotiating risk-related terms and qualifying suppliers
Day Two: Minimizing and Transferring Risk
- Risk transfer through contract types: fixed-price, cost-reimbursable, incentive, and award-fee contracts
- Key contractual provisions: warranties, indemnities, insurance, and guarantees
Day Three: Risk-Related Terms & Conditions Post-Pandemic
- Managing external events, force majeure, strikes, and labor disputes
- Risk allocation in title, subcontracting, assignment, and novation
- Application of ICC Incoterms in risk allocation
Day Four: Dealing with Financial Risks
- Payment, currency, and economic risks
- Fraud, corruption, and liability limitations
- Distinctions between contractual liability and general law
- Gross negligence and its contractual implications
Day Five: Remedies and Dispute Resolution
- Overview of contractual remedies and enforcement
- Mistakes, misrepresentations, and impracticability of performance
- Liquidated damages, warranties, and dispute resolution mechanisms
- Review of course content, Q&A, and practical applications
Certificates