Contractual Risk Management Training
5 Day Training
Locations: Grayston Ridge Office Park, Sandton
Platform: Available In-Class / Online
Price: Available on request
Course Introduction
The realm of commercial activity is dominated by contracts, which delineate the steps necessary to safeguard a company’s growth and development. Often lengthy and riddled with legal complexities and inherent risks, contracts require precise navigation to maximize returns while minimizing costs and risks. Contract risk management is pivotal in this, offering tools to detect, control, and mitigate risks throughout a contract’s lifecycle, thereby maximizing its value through diligent compliance monitoring.
Course Objectives
The Contractual Risk Management Training Course, designed by Prospen Africa, aims to:
Equip participants with the ability to define the processes of contract risk management.
Draw clear distinctions between contract management and contract risk management.
Impart effective methods for detecting, evaluating, minimizing, and monitoring contract risks.
Identify and articulate the varied manifestations of contract risks.
Compare and contrast different risk identification and measurement strategies.
Examine the implications of different risk allocation measures.
Understand the impact of various risk-allocation techniques.
Present ways to transfer risk in contract management.
Develop a deep comprehension of actual contract management needs and client accountability.
Enhance interdepartmental communication among commercial, technical, and legal teams across the contract lifecycle.
Personal Benefits
Participants will benefit by:
Gaining a deeper understanding of the intricacies of contract management and client responsibility.
Enhancing collaboration among commercial, technical, and legal departments from the beginning to the end of a contract.
Deepening their comprehension of contractual risks and strategically allocating these risks.
Building a robust capacity to identify and assess potential risks, distinguishing themselves professionally.
Who should attend?
The Contractual Risk Management Training course is well-suited for:
Individuals in engineering, contract management, and maintenance roles.
Personnel in procurement, purchasing, bidding, project management, and contracts.
Those responsible for audit, finance, claims, and risk management.
Professionals involved in the evaluation, drafting, planning, and administration of tenders.
Training Methodology
Our diverse instructional approaches ensure effective learning:
– Lectures & Presentations: Engage with expert-driven, stimulating content.
– Course Material: Access well-crafted supporting resources.
– Group Work: Collaborate on discussions and case studies for practical insights.
– Workshops & Role-Play: Participate in immersive, scenario-based activities.
– Practical Application: Focus on applying theoretical knowledge in real situations.
– Post-Training Support: Receive extensive support after training for skill implementation.
Training Outline
Module 1: Fundamentals of Contract Risk Identification
Exploring different risk types within risk management.
The essentials of contractual relationships.
Establishing risk categories from both contractual sides.
Detailed risk assessment procedures.
Effective management of contractual risks.
Module 2: Strategies for Risk Transfer and Mitigation
Mechanisms for transferring risk across various contract models.
Understanding lump-sum and fixed-price contracts.
Reimbursable cost contracts and their implications.
The role of incentive contracts in risk management.
Pricing arrangements with award fees.
Concepts of indemnities and their application.
Insurance and the cross indemnities concept.
Module 3: Categorizing Types of Contractual Risks
Financial risks specific to contracts.
Identifying and addressing value leakage.
Legal risks inherent in contracts.
Risks affecting reputational aspects of contracts.
Contract terms that may become controversial.
Security risks related to contractual agreements.
Module 4: Risk-Related Conditions and Clauses
Understanding force majeure and its impact.
Managing risks associated with strikes and labour disputes.
Title risks, danger, assignment, and novation.
Evaluating risks associated with subcontracting.
Subcontractor clause implications.
Module 5: Navigating Financial Risks in Contracts
Payment-related risk management strategies.
Handling currency risks and economic uncertainties.
Approaches to combat corruption and fraud.
Exploring the nuances of liability exclusion or restriction.
Differentiating between contract liability and general liability.
Comparing contract liability with common law and tort responsibility.
Module 6: Remedies and Responses to Contractual Crises
Overview of general remedies available in contracts.
Types of remedies and their appropriate application.
Dealing with liquidated damages and warranties.
Protective measures and real-life case discussions.
Course review and interactive Q&A session to consolidate learning.
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