The 3 Phases of Contract Management

What are contracts and how are they created?

• The need for contractual relationships

• What is needed to create a valid contract?

  • Offer and acceptance

  • Intention to create a legal relationship

  • Written or oral?

  • Other legal formalities in different countries

    • Signing and sealing

    • Witnesses

  • Authority to sign

  • How to prove authority

• The tender process

• Involvement of agents

• What happens if there is no contract, but work is carried out anyway?

• Making contracts enforceable – with particular emphasis on the international context

Structure of contracts

• Form of Agreement

• General Terms and Conditions

• Special Terms and Conditions

• Schedules or Appendices

• Title (ownership) and risk of damage

  • When does it transfer?

  • Use of ICC INCOTERMS

• Notices and other formalities

• Which law and which courts?

• Different contractual structures

• Traditional

• New structures used in the Middle East

• New structures not widely used in the Middle East

Collateral documents

• Bonds and guarantees

  • Tender Bonds

  • Advance Payment Bonds

  • Performance Bonds

  • Warranty Bonds

  • Parent Company Guarantees

• Retention/Withholding

• Retention Bonds

• Letters of intent

• Letters of award

• Letters of comfort or awareness

• Types

• Who should carry the cover?

• How should you manage claims?

• Are banks or insurance companies good enough security?

• Insurance policies

• Assessing the need for financial security in the current economic climate

• Changes to the Contract documents

  • Need for consent

  • Assignment/Novation explained and distinguished

  • Waiver

• Changes to the scope

• Variation clauses

• Notice provisions

• Valuation of variations and changes

• Claims – what they are, and how they arise

• Delay caused by the client

• Delay caused by contractor/supplier

• Force majeure

• Delay and disruption

Resolving Disputes

• Negotiation

• Staged dispute resolution clauses

• Litigation

• Arbitration

• New best practices in dispute resolution

  • Mediation

  • Conciliation

  • Early neutral evaluation

  • Expert determination

  • Mini-arbitration

  • Pendulum arbitration

• Final questions and review of course

Assessment leading to ILM Endorsed Certification:

Learners have to demonstrate in a work-based assignment a clear understanding of the role of contracts within a business by identifying a contractual problem within the workplace and examine ways to process or resolve it. The problem may relate to the inception, negotiation, structure, content, management, breach or termination of the contract or any variety of these. Learners should focus on showing:

• Ability to understand commercial issues relating to the contract

• Choice of potential contracting strategies

• Appropriate engagement of and communication with the legal department

• Understanding where appropriate of using bonds and guarantees as part of contracting strategy

• Control of change

• Use of modern dispute resolution techniques

• Chosen method of improving relationships with suppliers and contractors as a result of reducing conflict