Content of the Contract Program
This page provides an overview on the content of the lessons in the ContracT Program
Contract Program: Contract Management in your company
The content in the Contract Program focuses on all employees who deal with commercial topics in projects. It is the typical basic training for the contract manager in a company as a central point of contact. In addition to the contract manager, this includes the project manager, controller, commercial manager and sales staff who regularly negotiate contracts.
The Contract Program consists of 3 modules and builds on the Base Program and the Claim Program. Module 4 deals with receivables management, module 5 deals with contract management and module 6 deals with typical contracts and special contractual clauses.
Content in Modul 4: Claim Managament
Content in Module 4 (Contract Program part 1 of 3)
4.1 |
Management of Changes |
Changes in a project are normal and the order of the day. Therefore, it makes sense if standardized processes are established in a company, such as how changes are identified at an early stage and how they are dealt with. In recent years there have been an increasing number of cases in which contracts Define elaborate procedures to implement a change and at the same time lose a claim if short deadlines are exceeded. |
4.2 |
Methods for planned changes (change orders) |
A project initially exists as a rough idea and is also agreed in a contract. As part of the implementation, the parties concretise these ideas and develop change requests through intensive engagement with the matter. In contrast to a claim, such change requests can be discussed and agreed in advance, which is why they are also given the title “Planned Changes”. This lesson now deals with the planned changes, the processes and the points to be considered. |
4.3 |
Changes with subcontractors |
The more complex a project, the more contractors and suppliers are involved. Changes are the order of the day, especially when a plant requires a high degree of planning. This lesson deals with procedures, how a change management with contractors can be designed and which special features have to be considered. |
4.4 |
Acceleration measures |
The more complex a project or work is, the more likely it is to be delayed. The contractor would then like an acceleration so that the originally planned completion dates can be met as far as possible. Contracts then enable the customer to order an accelerated completion. This lesson covers issues that need to be considered both in contracts and when performing such an action. |
4.5 |
Activities around a suspension |
There are always situations in which a person ordering a work orders a suspension, i.e. a delayed completion. So the current work has to be stopped and kept in such a way that you can start again at a later point in time. This lesson deals with aspects that have to be considered in the context of a suspension. |
4.6 |
Handling of unplanned changes (Claims) |
Unplanned changes result from a breach of duty or the occurrence of a risk. Both lead to damage. Contracts define whether damage will be compensated and who can then be claimed. In this lesson a standardized procedure is shown, how effort and resistance can be reduced and how professional claims are created. |
4.7 |
Establishing claim documents |
Successful claims follow a standard structure. The structured and systematic structure of a claim also serves as an orientation as to which documents are required in advance to secure evidence. |
4.8 |
case analysis of complex claims |
In many cases, especially in a large project, there are many small disruptions from everyone involved, which then add up to significant damage. This lesson describes a structured procedure in order to be able to assign malfunctions and damage, especially in the context of complex issues. |
4.9 |
Management of time delays |
The problem with disruptions that lead to a delay in deadlines is that when the disruption begins, it is impossible to predict with certainty how it will develop and what effects it will have. If the case is then to be processed months later, the necessary documents and evidence are usually missing. This lesson explains a systematic procedure for recording and documenting a fault. |
4.10 |
A structured process to identify changes |
Every change is preceded by an event. Be it the request of the customer, a hindrance or other deviation from the contractual agreements: It usually cannot be predicted what additional work will result from this event. In addition, each event should be responded to individually. This lesson deals with a systematic recording of all events that lead or can lead to a deviation. |
4.11 |
Interfacemanagement |
The boundaries of a work pact are the interfaces to other work packages, companies, customers, etc. Disruptions at the interfaces lead to a disruption of the following work pact. This lesson deals with the handling of interfaces in contracts and in day-to-day project work. |
4.12 |
Expenses in case of self-action |
If the contractor does not comply with the request for supplementary performance, the customer can remedy the defect himself and demand reimbursement of expenses. This lesson deals with the prerequisites and boundary conditions in the context of a self-assessment. |
4.13 |
Claim Assessment |
Claims can be presented as compensation or as a change. The larger a project, the more difficult it becomes for the plant manufacturer to process the many requirements. In part, these are based on legitimate claims, and in part only on the attempt to get reimbursed costs that you incurred through your own fault. This lesson deals with the examination and the correct handling of claims that are directed against your own company. |
Content in Module 5 (Contract Program part 2 of 3)
5.1 |
Strategic contract management |
Contract management includes all activities so that the contract is adapted to the course of the project. Contract management ensures that risks are reduced and the result improved. This lesson describes the content and tasks of professional contract management. |
5.2 |
Structured Contract Analysis |
In the case of project contracts in particular, contract analysis is an important step in making a project a success. This lesson describes the basic methods of contract analysis. |
5.3 |
Opportunities & Risk Management |
The aim of risk management is the timely detection of deviations from the baseline so that consequences can be minimized and claims such as claims and change orders can be asserted. The contract analysis checks the binding scope of services from the contract, whereas the risk analysis carries out a commercial assessment of events that are possible but not yet certain. This lesson explains the different methods and procedures for risk and opportunity management in a project. |
5.4 |
Erosion of profit in larger projects |
Erosion is a critical factor, especially in plant engineering. It can be seen again and again that the planned result from the initial calculation is slowly but steadily eroded and lost in the course of the project's life. This lesson covers the most important causes of erosion. |
5.5 |
Basic calculation methods in projects |
There are very different types of project, such as research projects, organizational projects, IT projects, logistics projects, etc. In this lesson we deal with the sensible methods of project costing in the capital goods industry, as is the order of the day in mechanical and plant engineering. |
5.6 |
Active & Passive Controlling elements |
The typical operational controlling process for a company is only suitable to a limited extent for efficient project controlling. This lesson explains the difference and the special requirements for a controlling process in a project. |
5.7 |
Procedures in project controlling |
Project controlling is an elementary component in contract management. Any deviation from the planned project execution can indicate a breach of duty. A claim can be made either as a separate claim against another party or another party. This lesson deals with the principles and methods of project controlling. |
5.8 |
Avoiding Conflicts |
Dispute in connection with a claim is the order of the day. However, the dispute should not unnecessarily burden the business relationship and, above all, project management. This lesson deals with constraints that help keep a dispute over money from escalating. |
Content in Module 6 (Contract Program part 3 of 3)
6.1 |
Model & Framework Contracts |
Model contracts and framework contracts are widespread. This lesson covers the key features to consider in this context. |
6.2 |
The German VOB |
The VOB contracts play a fundamental role in construction work in Germany. In this lesson I'll cover a few things to keep in mind. |
6.3 |
FIDIC model contracts |
FIDIC model contracts are widespread worldwide and are widely used in international plant construction. This lesson covers the specifics of these model contracts. |
6.4 |
Orgalime contracts |
ORGALIME contracts play an important role in European mechanical engineering in particular. In this lesson you will learn when ORGALIME contract models can be used and what special features exist. |
6.5 |
New Engineering Contracts |
Another family of contracts are the New Engineering Contracts. This lesson explains the typical area of application and the main features of these sample contracts. |
6.6 |
CPC 2013 / TCM 15: Model contracts for large & complex projects |
Complex Project Contracts or Time and Cost Management Contracts represent an attempt to optimize the cooperation between all parties involved in such a way that cost overruns and construction delays are avoided. You will learn how to do this in this lesson. |
6.7 |
Project Partnering Contracts |
A new approach to contract management. Partnering contracts are based on close cooperation between all those involved in the project. A core team works closely together in an open-book process from project development to completion. |
6.8 |
ICC Model Subcontract |
The international chamber of commerce, based in Paris, has developed different contract models. This lesson looks at the nature of these contract models and what to consider when using them. |
6.9 |
None disclosure agreements |
There are a variety of nondisclosure or confidentiality agreements with the aim of preventing such information from being passed on to third parties or to limit its use by the receiving party to contractual purposes. In addition, there are more and more cases in which an agreement contains obligations that go beyond the usual purpose. In addition to the necessary content, this lesson also explains critical elements that must be checked before signing. |
6.10 |
Consortium Agreements |
Companies of all sizes that want to work together on major international or national projects need solid and balanced conditions for such cooperation. Consortium agreements, which should be permanent, clear and fair, provide the basis for such cooperation. |
6.11 |
Contracts with foreign elements |
This lesson explains the special features of foreign contracts. The examination sequence is dealt with in the case of conflict of laws, legal fees in litigation abroad, interest on arrears in other contract law and the retention of title in foreign transactions. In addition, special liability issues in France and important contractual points in China are dealt with. |
6.12 |
Strategies on critical clauses |
Especially in connection with Anglo-American law, there are some formulations and constructions that should be carefully checked before signing the contract. This lesson discusses some clauses and contractual structures that require special attention. |
6.13 |
Strategies with unfair contracts and clauses |
There are various strategies in connection with contracts, which are largely determined by the objectives of the parties. This lesson explains some of the most common strategies, their risks, and how to avoid them |
6.14 |
Concepts to limit contractual liability |
A company is fundamentally liable for all damage it causes. This lesson provides knowledge of basic methods for limiting liability in a contract. |