Construction projects have a history of contractual disputes and conflict. These problems have reduced the efficiency and profitability of developments, and have not been to the benefit of either clients or contractors. Construction tends to attract contractual problems because of the complex nature of the work and commercial arrangements involved.
The purpose of this course is to help delegates understand the reasons why such problems arise, and how to avoid them in the future. Many contracts are now being conducted in a different way to the traditional approach, with more openness between the parties, and this has, in some cases at least, reduced conflict and increased profitability for all parties.
Understand how contracts work, and why they sometimes cause problems
Address some specific clauses and provisions that are a common source of problems
Develop thinking around more collaborative approaches to working on construction contracts
Recognize the dangers that such approaches bring, and how to minimize problems
Look at construction contracting in an international context
Understand how to resolve disputes quickly and efficiently
Exploring major issues in engineering and construction contracting
Analyze why things so often go wrong
Discuss ways to improve
Explain how a more collaborative approach might benefit engineering and construction projects
Project Managers
Contract Managers
Contract Personnel
Construction Professionals
Cost Consultants and Quantity Surveyors
Procurement Personnel
Project Engineers
Contract Engineers
Anybody involved in construction and engineering contracts
Why Contracts are Necessary
How Contracts are Formed
Particular issues with Construction Contracts
Use of Standard Forms
FIDIC
NEC
LOGIC
Differences in bargaining positions
Problems with competitive tendering
Problems with different industries
And different regions/countries
Issues with different Legal Systems
Design Responsibility
Requiring contractors to warrant the design of others
Standard of work
Fitness for purpose
International/National/Company standards
Standards for Professional Services
Variations
Time
Money
Force Majeure
Intellectual Property
Limits of Liability
Indemnities
Insurance
Some minor problems:
Notices
Entire Agreement
Incorporation by Reference
Lump-Sum/Fixed Price
Bill of Quantities/Schedule of Rates
Adding incentive fees
Escalation
Dealing with general price inflation
Economic Price Adjustment
Problems with volatile materials (or labor) markets
Selecting the right index
Call-off Contracts
Risk and Reward Structures
Build Operate Transfer (and similar models)
Open Book Approaches
Collaborative Working
Advantages
Dangers, and how to avoid them
How disputes arise
Methods to avoid disputes or deal with them quickly as they arise
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