This program is designed to help you enhance your knowledge of your key duties, responsibilities and potential liabilities in the area of construction contracts. You will have the opportunity to examine a number of critical legal areas that are relevant to your organisation, cases laws will be discussed with the participants for better understanding on the subject.
The three-day practical workshop will help
delegates enhance their skill on the subject, resulting in a positive impact on
the bottom line of the company
- Learn how to create a formal contract
- Deal with contractual clauses that minimises contractual risk
- How to effectively read tender/bid documents/proposals.
- Understand how to deal with and focus on impacts and risks in Variation Clause
- Understand in details entitlement to EOT and concept of Time At Large.
- Understand Delay Claims
- Understand, identify and learn about risks and costs involved when dealing MOU/LOI and NDA
- Suggestion on how Claims can be avoided and focus on best practices on contractual correspondence.
- Understand the pitfalls in writing Scope of Work (SOW)
- Understand methods involved in measuring Contractor Performance.
- How to deal with dispute and dispute resolution clauses in a contract.
- International Best Practices
Day-1
1. Contract Law Principles- How are Contracts Formed.
When does an Agreement become a Contract?
When does a LOI/MOU (Letter of Intent /Memorandum of Understanding – become a contract
- Contracts
- Offer or Proposal
- Rejection of an offer / Counter offer.
- Acceptance
- Consideration
- Essentials of Valid Contract
- Free Consent
- Quasi Contracts
- Performance of Contract
- Battle of Forms
2. Commercial Terms and Conditions in Contract/Tender-Bid Document
Thorough understanding of clauses, which deals allocation of Risks
Taking preventative steps in Mitigating the Risk
- Indemnity
- Assignment and Delegation
- Successors and Assigns
- Limitation of Liability/Total Liability Cap
- Third Party Liability
- Force Majeure
- Damages, Liquidated Damages/ Penalty
- Consequential Damages
- Negligence/Gross Negligence and Wilful misconduct
- Exclusive Remedy Provisions
- Governing Law
- Insurance
- Subrogation and Waiver of Subrogation.
- Representations
- Warranty
- Warranty and Guarantee
3. Identifying risk involved and cost implications in
- Letter of Intent (LOI)
- Memorandum of Understanding (MOU) and
- Non-Disclosure Agreement (NDA)
Understand International Best Practices
4. Scope of Work/Statement of Work (SOW)
- Understanding Scope in detail
- Pitfalls in dealing with Scope
- Guideline for drafting Effective SOW
- Managing SOW
- Case Study
Day -2
5. Commercial Terms in a Contract
- Understanding Bid Bonds
- Advance payment Bonds
- Difference between Bonds and Guarantees
- Performance Bond/Security
- Retention Money/Bond
- Comfort Letter
- Letter of Credit
- Parent Company Guarantee
- Contract Price
6. Types of Contracts
- Fixed Price Contract or Lumpsum Contracts
- Cost Reimbursable Contracts
- Time and Material Contracts
- Unit rates
- Maximum Price
- NAPNOC
- Measurable
- Re-measurable contracts
7. IPR Rights in a Contract
- IPR Ownership Rights in a Contract
Dealing with Variations
- Definition of Variations
- Variations and SOW
- Variation Power
- Limits on Power to direct variations
- Formal requirement of Variation Clause
Measuring Contractor Performance
- Understanding typical methods for measuring contractor Performance
- Taking preventative steps in reducing claims when dealing with Contractor performance
Learn Contractual Correspondence when dealing with claims
- Model Words /Sentences- to protect your company’s interest when dealing with Claims
Day- 3
Defects in Construction Contracts
- 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
Key issues in Dealing with Construction Claims
- Extension of Time (EOT)
- Program and Records
- Time is the essence
- Time at large
- BOQ
- Design Error
- Termination
- Disruption
- Cost for Claims preparation
Claims Arising out of Delay
- 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
Exercise – Sheets Case Study
