• Class and Course

    Contracts for High-Value High Risk Projects

    The Contracts and Procurement for High Value/Risk Projects Contracts class is designed for advanced or experienced project managers who are actively managing or could potentially be managing projects that are high cost, high visibility, or have the potential to shape the relationship with major stakeholders.

    Most project managers eventually need to have an understanding of the terms and conditions that govern the projects or vendors under their management. In large organizations, there is usually a procurement department or there are contract managers assigned to important engagements. Despite this, the project manager is always the eyes and ears of the contract manager in managing the engagement, vendors, or deliverables of the project.

    Usually project managers in the upstream oil & gas industry come from engineering programs or work their way up from field positions to positions of management. Nowhere in this education and experience do they have practical education in the construction and management of contractual relationships. This advanced class will give project managers the tools that they need to approach contracts and contractual relationships.

    Day 1

    Contract Aspects of Project Management

    • Elements of a Contract
    • Types of Contract
    • Risk mitigating Contract Language

    During this day the learners will be introduced to the fundamental structures that underlie most contracts – components. Types of contracts and English-language phrases are described in terms of the mitigation and anticipation of risks to projects. Common Law interpretations of contract language are taught.

    Day 2

    Contract Formation during Project Definition (Pre-Award)

    • The roles of Contract Manager and Project Manager
    • The Contract Administration Plan
    • Pricing Concepts
    • The Contract Audit Checklist

    During this day the learners are introduced to the roles of the Contract Manager and the Project Manager on both sides of the contractual wall – the buyer and the seller – since project managers are frequently sellers to one entity and buyers from another. The concept of the Contract Administration Plan – which treats contracts as “subprojects” of the larger project is introduced and how such a tool could be of use to a project manager. Basic pricing concepts are introduced or reviewed. The concept of the checklist contract audit form to ensure the completeness and proper framing is introduced, and will be used later in the course.

    Day 3

    Contract Issues during Project Post Award and Execution

    • Contract Change Management
    • Change Negotiation
    • Inspection and Acceptance of Work
    • Performance Management
    • Alternative Dispute Resolution

    This day introduces learners to the application of change management concepts (which they are assumed to know from project management experience) to contract management environments. Issues relating to inspection and monitoring of performance on the contract are laid out. The concept of who has the relationship, formally, in the contract and can speak for which parties is introduced and practiced. The concept of Alternative Dispute Resolution is introduced as a method for avoiding costly and time-consuming litigation.

    Day 4

    Monitoring, Controlling, and Closing Contracts in Projects

    • Monitoring And Controlling Project Contractual Risk
    • The Project Manager’s Role In Negotiations
    • Legal Concepts That Arise During Closing

    During this day the learners will be taught and will practice the skills that project managers exercise in assisting the contract manager during a project – gathering information, facilitating resolution of disputes, and expediting the process of negotiations.

    Project Managers and people working in Project Management Office or Supply Chain positions

    Project management fundamentals training with a minimum of 3 years project management experience. PMP certification preferred.

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