In the current environment, managing and understanding construction contracts is more difficult than ever. However, things worsen. Owners must adapt their core competences to include the skills necessary for their construction contracts to succeed in light of the reduction in facility engineering capabilities. In actuality, understanding the construction contracting process is essential to preventing failure given today's scarce labor resources, growing commodity costs, and demands to start projects sooner. Understanding every step of the contract development process—including the tender document, the bidding procedure, construction management, contract administration, contract interpretation, and contract enforcement—is essential for success.

Course Objectives:

To provide participants with the practical, fundamental knowledge of contract development, interpretation, and enforcement allowing improved control of the contracting process and their project costs.

Topics Discussed Will Include:

Financial aspects of contracts
Enforcement of contracts
Structure of construction contracts
Forms of contracts
Request for quotations (RFQ)
The bidding process for construction contracts
Construction management
Tender document
Interpretation of contract language by the courts.
Contract administration
Earned Value analysis in the control of contracts
Bonding
Insurance interpretation and contract enforcement.

Using, case studies, exercises, and discussion, this seminar will address developing, managing, and interpretation of construction contracts in industrial applications including project life cycle, risk analysis, developing tender documents, contract first principals, tendering contracts, types of contracts, RFQ’s, bidding, contract language, Earned Value Analysis for the control of contracts, bonding, and insurance. Developing, managing, interpreting, and enforcing contracts is a lot of work. It requires an understanding and the ability to develop the tender documents leading up to the contract. It is a team effort if success is to be achieved. In theory interpretation of construction, contracts sound easy, but it is a lot more difficult to put into practice if the backup material is not up to par.

Who Should Attend?

This course is designed for those involved in managing the design and/or construction of projects, i.e. engineers, technologists and technicians, tradesmen, maintenance personnel, and other personnel from industrial users, utilities, municipalities, educational institutions, commercial facilities, consulting engineering firms and manufacturers. Topics covered in this course are also of great value to managers and other non-technical project personnel.

Course Outlines:

Introduction

Guidelines
Scope / schedule / budget / quality and how they relate to contracts
Rate of return and contract changes
Project life cycle and contract scope

Typical types of contracts and purchase orders:

Utilities
Equipment
Manpower
Engineering contractors

Risk and Construction Contracts

Risk analysis
Escalation in contracts
Freight
Currency
Contingency and project reserve
Checklist for determining the scope
Drawing control in contracts and PO’s
Unified front
Trends or extra work
The rule for analyzing FWO’s

Enforcement Of Contracts

First-principles
Construction contracts
Requirements of enforceable contracts
what does enforcement mean; what can the courts do for you?

Structure of Construction Contracts

Tendering contracts
Enforcement (judicial oversight) of the tendering process
Building contracts
Types of building contracts
Considered by payment structure

Considered by project structure
Traditional project structure
Construction management
Design/build

Parts of a building contract – the contract documents

Forms of Contracts

PO with special conditions for site contractors
Construction contract using a tender document
CCDC2

Request For Quotations (RFQ)

2 Types
Equipment only – typically a PO
Involving manpower – typically a contract
Bidders list issues
RFQ for PO’s and contracts
Equipment specification
Scope of work
Plant conditions and standard component list
Vendor data requirements
Vendor information requirements

Bid Process For Construction Contracts

Onsite bid meetings
Receiving proposals
Bid evaluation
Evaluation checklist
Bids high, Bids low
Pre-award meetings - purpose

Filters