Pricing contracts, evaluating claims for additional money, allocating risk
Key Learning Outcomes
This workshop focuses on pricing strategies commonly used in construction contracts. It aims to provide a comprehensive understanding of the different pricing strategies, their risks and their rewards. Matters which delegates will gain an understanding of include:
- The risks and rewards of different pricing strategies
- How decisions at the tender and contract negotiation stage impact on the parties’ risk
- How the pricing strategy fits in with the responsibility for design and other obligations under the contract
- How the construction period affects pricing strategy
- Interim payment and cash flow
- Front loading of payment
- Calculating interim payment and agreeing the final account
- How changes in price are dealt with
- Payment of subcontractors and suppliers
- The Building and Construction Industry Security of Payment Act
Who Should Attend
- Project Owners/Employers
- Contractors and equipment/material suppliers
- Contract Administrators and Quantity
- Engineers and Architects
- Multilateral development banks and funding agencies supporting infrastructure projects
- Legal advisers
- Government Ministries and Agencies
- Contract Managers / Project managers / Commercial Directors in any business and industry using engineering or construction contracts
Very Hands-On and Interactive:
- This workshop is designed around case studies and practical examples.
- Through a combination of lectures, discussion and hands on problem solving, this workshop will provide a thorough, comprehensive understanding of the management of time, money and quality in Construction and Engineering Contracts.
- Delegates will be provided with a comprehensive set of notes that includes case studies, slides and course notes.
What Past Delegates Liked About This Course
“Excellent speaker. Refresher on the conditions”
– Tan Khoo Hwa, Head of Contracts, M+W Singapore Pte Ltd
“Great update on the new edition of FIDIC. Interesting course and knowledgeable speaker”
– Larry Tan, Contracts Manager, Singapore LNG Corporation Pte Ltd
“Trainer is very effective & knowledgeable, I learned a lot. Informative materials”
– Ana Michaela, Associate Legal Counsel, San Miguel Holdings Corp
“Informative, scope is just right for time given”
– Andrew De Castro, Overseas Business Advisor, West Japan Engineering Consultants Inc
SESSION 1: INTRODUCTION TO THE DIFFERENT PRICING STRATEGIES AND HOW THEY FIT IN WITH THE DIFFERENT TYPES OF CONTRACT INCLUDING:
- Design Build/EPC Contracts
- Owner – designed projects
- Fixed price, lump sum contracts
- Remeasurable contracts
- Cost reimbursable contracts
- Target sum contracts and
- Guaranteed maximum price
SESSION 2: MANAGING CASH FLOW. TOPICS COVERED HERE INCLUDE:
- Interim payment
- Front Loading
- Advance payment
- Keeping money flowing – the Building and Construction Security of Payment Act
SESSION 3: MANAGING CHANGE INCLUDING
- Contract price adjustment – for inflation and other changes in price
- Pricing variations
- Pricing extensions of time
SESSION 4: SCOPE OF LUMP SUM CONTRACTS
- Determining what falls in/out of the lump sum
SESSIONS 1 AND 2: PRICING STRATEGIES WHEN ENTERING INTO THE CONTRACT: IN THIS HALF DAY SESSION WE FOCUS ON STRATEGIES FOR PRICING AND AWARDING CONTRACTS. TOPICS COVERED HERE INCLUDE:
- Understanding the different types of tendering (open, closed, selective etc.)
- Considerations and choices that the contractor is faced with when tendering for Fixed Price work.
- Tendering pitfalls to avoid.
- Pricing strategies and optimised cash flow.
- Balancing the tender submission based on known and unknown internal and external factors.
- How the construction period affects pricing strategy.
- Beware low bids!
SESSION 3: PAYMENT OF SUBCONTRACTORS AND SUPPLIERS. TOPICS COVERED HERE INCLUDE:
- Direct payment from owner to supplier or subcontractor
- Valuing subcontractors’ work
- Pay when paid clauses in contracts
SESSION 4: AGREEING THE FINAL ACCOUNT:
In this session we focus on issues that can arise when the final account is being finalised. We consider both disputes which may arise at this stage and settlements which parties often agree to.
We end this session with a wrap up of the workshop and feedback on the matters considered.
On-site & in-house training
Deliver this course how you want, where you want, when you want – and save up to 40%! 8+ employees seeking training on the same topic?
Talk to us about an on-site/in-house & customised solution.