Drafting Contracts for Procurement, Tendering, and Commissioning

Introduction:

Proper and specialized drafting of contracts, tailored to specific business objectives and circumstances, is crucial. Well-drafted contracts are essential for recognizing and managing risks, ensuring that projects and procurement processes are executed efficiently and without costly disputes. Mastery of contract language is key; improper wording can jeopardize project goals, delivery, and contract viability.

As procurement and tendering activities become more complex, embracing current practices from successful global enterprises is vital. The Drafting Contracts for Procurement, Tendering, and Commissioning course offers professionals the chance to refine their contract language and procedures, minimizing extra costs and risks.

Objectives:

By the end of this contract drafting and procurement course, participants will:

• Condense complex contract issues and parts sequentially.
• Address both commercial and non-commercial factors.
• Ensure consistency among agreement contents.
• Detect problems and recommend efficient responses through well-written contracts and management.
• Conduct debates and adapt management strategies to avoid conflicts.
• Scrutinize the legal nature and formation of agreements.
• Identify prevailing conditions to determine appropriate contract types and tendering processes.
• Discuss key contract provisions such as risk, remedies, and insurance.
• Adhere to contract terms and strive to resolve and avoid disputes.

Training Methodology:

• Lecture - Interactive Sessions
• Case Study Analysis
• Simulation-Based Learning
• Structuring
• Forums and Seminars
• Panels
• Feedback Sessions

Course Outline:

Unit 1: Basics of Contracts

• Need for contracts
• Contract management
• The deal itself
• Effective negotiation
• Mechanism of offer and acceptance
• Use of documents in negotiation
• Written vs. oral agreements
• Internet-based contracts
• Importance of research and solvency

Unit 2: Tender Process and Contract Types

• Bidding: Tendering and Auctioning
• Tendering Procedure
• Submitting tenders
• Request for Proposal (RFP)
• Request for Quotation (RFQ)
• Prequalification
• Legal considerations
• Establishment of contract
• Negotiations and Term Sheets
• Basic contract types and their drawbacks
• Fixed fees and modern end users

Unit 3: Basic Contract Provisions

• Time for performance/delivery
• Management of self-performance and subcontractors
• Project control and reporting
• Payment terms
• Debt recovery measures
• Letters of Credit
• Parent Company Guarantees
• Terms of delivery
• Title and risk transfer (ICC Incoterms)
• Importance of retention of title clauses
• Effect of time of the essence
• Delivery, title, and risk of loss
• Risk management
• Indemnities
• Liquidated damages/penalties

Unit 4: Other Significant Elements in the Commissioning Process

• Changes and variations
• Extra-contractual liability
• Valuation of intellectual assets
• Contract discharge
• Limiting damages
• Guarantees
• Choice of law
• Final contract review and closure

Unit 5: Disputes

• Settlement strategies
• Dispute resolution agreements
• Court action
• Conventional arbitration
• New dispute resolution methods
• Arbitration and mediation
• Out-of-court conciliation
• Early neutral evaluation
• Expert determination