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EncartaLabs

Master Class on EPC Contracts Management

( Duration: 3 Days )

This Master Class on EPC Contracts Management training course is specifically designed for professionals who are interested in enhancing their knowledge on EPC contracts. The workshop will allow you to explore and understand complex and sometimes confusing commercial terms in to simpler non-legalese language. You will understand the challenges involved right from contract formation stage to execution. You will learn how to identify, analyze and mitigate risk, learn types of Insurance used by corporates to Mitigate Risk. Finally, the workshop will highlight the importance of dispute resolution process in EPC contracts.

By attending Master Class on EPC Contracts Management workshop, delegates will learn to:

  • Understand the options to be for the type of contracts used in Projects.
  • Discuss and apply decision-making criteria in tendering for EPC, EPCM and EPIC contracts
  • Contracting fundamentals, Contracting types & Methods
  • Understand legal jargon used in EPC contracts
  • Understand FIDIC Standard Contracts used in EPC
  • Gain insight in to Design Liability and FEED ENDORSEMENT
  • Best Practices in dealing with Variation
  • Understand how to develop Contract Administration Plan (CAP)
  • Deal with Claims & Claims Management
  • Understand types and consequences of Termination- how to avoid claims in the event of Termination of Contract.
  • Types of Insurance
  • Discover how to mitigate risk and identify the areas of potential claims
  • Understand Dispute Resolution Process
  • International Best Practices

The Master Class on EPC Contracts Management class is ideal for:

  • Commercial Heads, Directors, Managers, Engineers, Finance Managers, Development Engineers, Bidding Managers, Tendering Managers, Cost Control Managers, Claims Managers, Process Engineers, Structural Engineers, Technical Managers, Cost Engineers, Cost Estimation Engineers, Scheduling & Planning Managers, Product Development Engineers, Quality & Process Improvement Managers, Procurement Manager, Sales and Marketing, Business Development and anyone interested in upgrading their knowledge on EPC Contracts.

COURSE AGENDA

1

Introduction To Turnkey Contracts/

  • Acronyms demystified (EPC/ EPCI/ EPIC and EPCIC)
  • EPC and EPCM contracts distinguished
2

Contract Law Principles- Essential contract elements

  • Offer, acceptance, and counteroffer
  • Competent parties
  • Consideration
  • Legality of purpose
  • Contract interpretation
  • RFP, RFQ, RFI, EOI and ITB
  • Purchase order/Work order
  • Last Shot Rule
3

Understanding Terms Like

  • Letter of Tender
  • Letter of Acceptance
  • Letter of Intent
  • Letter of Award
4

Contracting Methods

  • The competitive bidding process
  • Two Step Sealed Bidding
  • Terms and Definitions
  • Types of Tender
  • E- Tendering
5

Contract Types

  • Fixed Price Contract or Lumpsum Contracts
  • Cost Reimbursable Contracts
  • Time and Material Contracts
  • Unit rates/BOQ
  • Maximum Price
  • NAPNOC
  • Measurable/ Re-measurable contracts
6

Standarad Form Of Contract

  • How FIDIC contracts are used worldwide
  • FIDIC (What and Why?)
  • FIDIC Publications
  • International Institutes using FIDIC
  • Composition of FIDIC Contracts
  • FIDIC Conditions of Contracts for Works Contracts
  • FIDIC Contracts Comparison Matrix
  • FIDIC Sub-Contracts
7

Tendering And Negotiating Contracts

  • Definition of Tender
  • Tender Planning
  • Types of Tender
  • Contents of Tender
  • Pitfalls to avoid when drafting SOW
  • Steps involved in Tender Process
  • Tender Documents
  • Evaluation of Tender
  • Finding a Competent Contractor
  • Negotiations- Strategies/ Process & Manipulative Ploys
  • Award
8

Design Risks

  • Design Risk
  • Design Liability
  • Professional Indemnity Insurance
  • Fit for purpose
9

Subcontracting

  • Key principles- Back to Back – Pay When Paid
  • Restrictions to subcontracting
  • Liability for subcontractor errors
  • Nominated subcontractors
  • Privity of Contract
10

Variations/Change Order

  • Definition of Variations
  • Variations and SOW
  • Variation Power
  • Limits on Power to direct variations
  • Pricing or valuing variations
  • Formal requirement of Variation Clause
11

Contract Administration

  • Review the Contract File
  • Determine the Level of Contract Surveillance
  • Delegating Contract Administration Functions
  • Develop a Contract Administration Plan
  • Identify Personnel to Represent the Contracting Officer
  • Notify the Contractor of COR Delegation
12

Planning/Programming And Control

  • Importance of a baseline program
  • Contractor obligations
  • Review of base line program by Engineer
  • Logical relationships between activities
  • Validation of base line program
  • Basis for entitlement of extension of time
  • Importance of record keeping
13

Delay

  • What is Delay
  • Causes of Delay
  • Excusable and non-excusable delays
  • Most common example of delay claims
  • Acceleration
  • Concurrent Delay
  • Float
  • What is required for successful delay claim
  • Heads of Damages
  • Recommendations to avoid delay claims
14

Defects

  • Design deficiencies
  • Material deficiencies
  • Specification problems
  • Workmanship deficiencies
  • Latent Defects
  • Patent Defects
  • Liability of Defects under the Contract
  • Defects Notification Period
  • Defect Liability Period
  • Decennial Liability
15

Claims Management Strategy & Process

  • Assessing/Evaluating the Claims
  • Preparing your claim; significance of records and documentation
  • Appointing the right team
  • Managing expectations
  • Knowing the cost involved
  • Dealing with;
    • Extension of Time (EOT)
    • Time at large
    • Defects/ Defects Notification Period
    • Termination
    • Disruption
    • Cost for Claims preparation
    • Claim notification
    • Documentation
    • Negotiation
  • The Most frequent clauses which give rise to Claims
    • Unforeseeable physical conditions
    • Right of Access to the Site
    • Delayed Drawings or Instructions.
    • Adjustment for changes in legislation
    • Commencement of the Works
16

Liability and Risk allocation Clauses

  • Indemnity
  • Limitation of Liability/Total Liability Cap
  • Third Party Liability
  • Force Majeure
  • Damages, Liquidated Damages/ Penalty
  • Consequential Damages
  • Negligence/Gross Negligence and Wilful -misconduct
  • Non-payment/Non- Performance
  • Exclusive Remedy Provisions
  • Assignment and Delegation
  • Representations
  • Warranty
  • Warranty and Guarantee
17

Risk & Insurance

  • What is a risk
  • Risk identification/mitigation
  • Contractors All Risk (CAR) Insurance Policy
  • Subrogation/Waiver of Subrogation
  • Third Party Liability Insurance
  • Commercial General Liability Insurance
  • Inland Marine Insurance
  • Other Insurances
18

Termination And Step-In Rights

  • Terminology
  • Cancellation
  • Repudiation and similar terms
  • Anticipatory and repudiatory breach
  • The act of termination
  • Taking possession of the work
19

Miscellaneous

  • Risk and Challenges when dealing with- including best practices in drafting
  • Letter of Intent (LOI)
  • Non-Disclosure Agreement (NDA)
  • Memorandum of Understanding (MOU)
20

Dispute Resolution Procedures

  • Introduction
  • Dispute resolution procedures
  • Negotiation
  • Mediation
  • Arbitration

Encarta Labs Advantage

  • One Stop Corporate Training Solution Providers for over 6,000 various courses on a variety of subjects
  • All courses are delivered by Industry Veterans
  • Get jumpstarted from newbie to production ready in a matter of few days
  • Trained more than 50,000 Corporate executives across the Globe
  • All our trainings are conducted in workshop mode with more focus on hands-on sessions

View our other course offerings by visiting https://www.encartalabs.com/course-catalogue-all.php

Contact us for delivering this course as a public/open-house workshop/online training for a group of 10+ candidates.

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