Please be informed that this site uses cookies.

+971 56 800 6744

+971 2 622 2605

Course Description

This intensive five-day program provides participants with an integrated approach to developing robust contracting strategies alongside comprehensive risk assessment and management. Designed for project owners, senior project managers, commercial managers, and procurement strategists, the course explores how different contracting models fundamentally impact risk allocation, project control, and overall value delivery. Participants will learn to systematically identify, analyze, evaluate, and mitigate risks inherent in various contract types and project delivery methods. Through strategic frameworks, practical tools, real-world case studies, and interactive workshops, attendees will gain the expertise to select and implement contracting strategies that proactively manage project risks, optimize commercial outcomes, and enhance project predictability.

Course Objectives

  • Understand the symbiotic relationship between contracting strategy and effective risk management.
  • Apply systematic methodologies for identifying, analyzing, and evaluating project and contractual risks.
  • Differentiate between various contracting models (e.g., Lump Sum, Cost Plus, Alliance, EPC) based on their inherent risk allocation profiles.
  • Select the optimal contracting strategy by strategically balancing project objectives with acceptable risk exposure.
  • Develop tailored risk mitigation and response plans embedded within contractual frameworks.
  • Implement robust processes for managing risks throughout the entire contract lifecycle.
  • Understand the commercial and legal implications of risk allocation in contract drafting.
  • Utilize advanced tools for quantitative and qualitative risk assessment in a contracting context.
  • Prepare comprehensive risk-informed business cases for proposed contracting strategies.
  • Foster a proactive risk-aware culture across project and contracting teams.
  • Negotiate contract terms that effectively allocate and manage identified risks.
  • Monitor and review the effectiveness of chosen strategies and risk responses.

Who Should Attend?

This course is ideal for project owners, project directors, senior project managers, commercial managers, procurement directors, legal counsel, risk managers, and members of executive steering committees involved in defining the strategic approach and contractual framework for major capital projects, complex procurements, and strategic initiatives.

Course Agenda

Day 1: Foundations of Contracting Strategy & Integrated Risk Management

    • Introduction to Contracting Strategy: Definition, purpose, and impact on project success.
  • Principles of Project Risk Management: Identification, Analysis, Response, Monitoring.
  • The Interdependence of Contracting Strategy and Risk Management.
  • Risk Appetite and Tolerance: Defining organizational comfort levels for risk.
  • Strategic Drivers for Contracting: How risk considerations shape objectives (e.g., risk transfer vs. risk sharing).
  • Overview of the Project Delivery Method Continuum from a risk perspective.
  • Identifying Key Stakeholders and their risk perspectives in contracting decisions.
  • Workshop: Mapping initial project risks and discussing their potential impact on contracting choices.

Day 2: Risk Identification, Analysis & Evaluation in Contracting

  • Systematic Risk Identification for Contracting Strategies:
      • Market Risks (e.g., limited competition, price volatility).
    • Project Scope Risks (e.g., undefined scope, changes).
    • Technical Risks (e.g., unproven technology, design maturity).
    • Financial Risks (e.g., budget overruns, funding availability, currency fluctuations).
    • Legal and Regulatory Risks (e.g., new laws, permits, compliance).
    • Operational Risks (e.g., logistics, site conditions).
  • Qualitative Risk Analysis: Probability and Impact Matrix, Risk Ranking.
  • Quantitative Risk Analysis (Overview): Monte Carlo Simulation (for cost/schedule uncertainty), Decision Trees.
  • Risk Registers and Heat Maps tailored for contracting decisions.
  • Analyzing Client/Owner and Contractor capabilities as risk factors.
  • Practical Exercise: Conducting a comprehensive risk identification and qualitative assessment for a complex project to inform contracting strategy.

Day 3: Contracting Models & Inherent Risk Allocation

  • Risk Allocation within Traditional Models:
      • Lump Sum (Fixed Price): Contractor assumes high cost/schedule risk; Owner assumes scope clarity risk.
    • Reimbursable (Cost Plus Fee): Owner assumes high cost risk; Contractor assumes less cost risk.
    • Unit Rate Contracts: Shared quantity risk.
    • Time & Materials (T&M): Owner assumes high performance/duration risk.
  • Risk Allocation within Integrated/Collaborative Models:
    • Alliance Contracting: Shared risk and reward, focus on collective outcomes.
    • Design-Build (DB) / EPC: Contractor assumes integrated design and construction risk.
    • EPCM: Owner retains more direct control and risk.
  • Public-Private Partnerships (PPPs): Complex risk transfer and long-term operational risk.
  • Understanding how legal clauses (e.g., force majeure, indemnities, warranties, liquidated damages) allocate risk.
  • Workshop: Analyzing a selection of contracting models and explicitly mapping their inherent risk allocations.

Day 4: Strategic Risk Response & Mitigation Through Contracts

    • Developing Risk Response Strategies: Avoid, Mitigate, Transfer, Accept.
  • Embedding Risk Mitigation in Contract Drafting:
    • Clear and precise scope definition to avoid scope creep.
    • Performance Incentives and Penalties.
    • Dispute Resolution Mechanisms to manage conflict risk.
    • Insurance requirements and liability caps.
    • Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for performance risk.
    • Contingency and Management Reserves in contracting.
  • Utilizing Contractual Terms to Transfer or Share Risk Effectively.
  • Vendor Selection from a Risk Perspective: Due diligence and capability assessment.
  • Contracting for Innovation and Managing Associated Risks.
  • Case Studies: Examining how specific contractual terms were used to manage critical risks in real projects.
  • Hands-on Practice: Modifying sample contract clauses to better address identified project risks.

Day 5: Implementation, Monitoring & Optimization of Contracting Strategy with Risk

    • Translating Chosen Strategy and Risk Framework into Procurement Documents.
  • Implementing the Risk Management Plan During Contract Execution:
    • Ongoing Risk Monitoring and Control.
    • Triggering Contingency Plans.
    • Managing Emerging and Residual Risks.
  • Communication of Risk Information to All Stakeholders.
  • Post-Implementation Review of Contracting Strategy Effectiveness.
  • Measuring the Success of Risk Allocation and Mitigation Efforts.
  • Lessons Learned for Future Contracting Strategies and Risk Management.
  • Ethical Considerations in Risk Allocation and Contractual Obligations.
  • Final Assessment: Comprehensive case study where participants must recommend a contracting strategy, identify key risks, and propose specific contractual risk mitigation measures for a complex project

Assessment Methodology

All courses conducted by EdTech are begun with a written Pre-evaluation and end with a Post-evaluation. The instructor will evaluate the knowledge and skills of the participants according to the feedback given by participants. This proactive method will help to recognize the benefits and knowledge gained by participants through the course.

Training Methodology

Facilitated by a highly experienced specialist; this program will be conducted using extensively interactive methods, encouraging participants to share their own experiences and apply the program material to real-life work situations in order to stimulate group discussions and improve the efficiency of the subject coverage. Percentages of the total course hour classification are:

  • 30%  Theoretical lectures, Concepts and Role Play
  • 30%  Work Presentation and Techniques
  • 20%  Case Studies and Practical Exercises
  • 20%  Topic General Discussions with Relevant Videos

Course Manual

Participants will be provided with a comprehensive reference manual. This manual is a compilation of core valuable information, references, presentation methods and inspiring reading materials.

Course Certificate

At the completion of the course, all participants who successfully accomplished the required contact hours will receive an EdTech Course Completion Certificate as a testimony to their commitment to professional development and further education.

Why Edtech ?

  • Industry Experienced; Internationally Qualified Trainers
  • Hands-on Practical Sessions & Assignments
  • Intensive Study materials
  • Flexible Schedules
  • Realistic training methodology
  • High-Quality Training in Affordable Course Fees
  • Achievement Certificate, as approved by the Ministry of Education (Abu Dhabi Center for Technical and Vocational Education Training - ACTVET), HABC, AWS, IAOSHE, SHRM, etc.