Construction Contract Law & Claims

Introduction: 

Never before workshop on Construction Contract Management, grab your chance to deal with all the practical and contractual issues in Construction Contract Management.

Course Objectives:      

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 drafting Scope of Work (SOW)
• Understand methods involved in measuring Contractor Performance.
• How to deal with dispute and dispute resolution clauses in a contract.
• Dispute Resolution
• International Best Practices

Course Content:

Day One:

Session 1: Contract Definition & Formation of Contract

• Contracts
• Offer or Proposal
• Rejection of an offer / Counter offer.
• Acceptance
• Consideration
• Essentials of Valid Contract
• Free Consent
• Quasi Contracts
• Performance of Contract
• Breach Of Contract / Material Brach of Contract
• Battle of Forms

Session 2: Understanding Terms in Construction Contracts

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

Session 3: 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

Session 4: Scope of Work (SOW)

• Guideline for writing SOW-How claims can be avoided by writing proper SOW
• Best Practices in Writing SOW

Session 5: Risk Mitigation tools

• 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

Day Two:

Session 6: Defects in Construction Contracts

• Design deficiencies
• Material deficiencies
• Latent Defects
• Patent Defects
• Liability of Defects under the Contract
• Defects Notification Period/• Defect Liability Period
• Decennial Liability

Session 7: Key Issues in – Construction Claims

• Extension of Time (EOT)
• Programme and Records
• Time is the essence
• Time at large
• BOQ
• Design Error
• Termination
• Disruption

Session 8: Risk Control Clauses- GCC and SCC –  Red Clauses

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

Day Three:

Session 9: 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

Session 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

Session 11: Measuring Performance of Contract

• Understanding typical methods for measuring contractor Performance
• Taking preventative steps in reducing claims when dealing with Contractor performance

Session 12: Risk Management

• Understanding the definition of Risk
• Identifying Risk
• Assessing Risk
• Mitigating Risk
• Developing a Risk Mitigation Plan

Session 13: Insurance in Construction Contract

• CAR – Contractors All Risk Insurance
• CGL – Commercial General Liability
• TPL – Third-Party Liability Insurance
• PI – Professional Indemnity Insurance
• Marine Insurance
• Inland Marine Insurance
• Cyber Insurance
• Pollution Insurance
• Political Risk Insurance
• Business Continuity Insurance
• D & O Insurance
• Fidelity Insurance
• Workmen’s Compensation Insurance
• Commercial Auto Insurance
• Transit Insurance
• Litigation Risk Insurance

Session 14: Dispute Resolution

• Dispute Resolution
• Claims Management