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Course Description

This intensive five-day program is designed for project owners, senior project managers, commercial managers, procurement strategists, and legal professionals responsible for determining the optimal contracting approach for major projects and procurements. The course provides a deep dive into the critical process of reviewing various contracting strategies and selecting the most suitable framework to achieve project objectives, manage risks, and maximize value. Participants will explore different contract models (e.g., Lump Sum, Cost Plus, Alliance, EPC, EPCM, PPP), analyze the factors influencing selection

Course Objectives

  • Understand the fundamental principles and importance of a well-defined contracting strategy.
  • Differentiate between various common contracting models and their inherent characteristics, benefits, and risks.
  • Analyze critical internal and external factors influencing contracting strategy selection (e.g., project risk profile, market capacity, client capabilities, regulatory environment).
  • Apply structured methodologies and decision-making frameworks for evaluating and selecting the optimal contracting strategy.
  • Align contracting strategy with overall project objectives, risk appetite, and organizational capabilities.
  • Understand the impact of different strategies on risk allocation, cost control, schedule management, and quality assurance.
  • Develop a robust process for reviewing existing contracting strategies and identifying areas for improvement.
  • Prepare a compelling business case for the recommended contracting strategy.
  • Anticipate and mitigate potential challenges in implementing selected strategies.
  • Understand the legal and commercial implications inherent in different contracting models.
  • Foster collaborative internal stakeholder engagement in the strategy selection process.
  • Evaluate the effectiveness of a chosen strategy post-implementation.

Who Should Attend?

This course is ideal for project owners, project directors, senior project managers, commercial managers, procurement directors, legal counsel, business unit leaders, and members of executive steering committees responsible for the strategic direction and contractual framework of major projects, capital investments, or significant procurements.

Course Agenda

Day 1: Foundations of Contracting Strategy & Project Alignment

    • Introduction to Contracting Strategy: Definition, purpose, and its strategic importance.
  • The Link between Contracting Strategy and Project Success Factors (Cost, Schedule, Quality, Risk).
  • Understanding the Project Value Chain and Where Contracting Strategy Intervenes.
  • Strategic Drivers for Contracting: Risk transfer, control, innovation, speed, cost certainty, market access.
  • Overview of the Project Delivery Method Continuum (Design-Bid-Build, Design-Build, EPCM, EPC, PPP).
  • Defining Project Objectives and Scope from a Strategic Contracting Perspective.
  • Identifying Key Internal and External Stakeholders in Strategy Selection.
  • Workshop: Aligning project objectives with potential strategic contracting goals.

Day 2: Analyzing Influencing Factors for Strategy Selection

  • Project-Specific Factors:
      • Project Complexity and Scope Definition Maturity.
    • Technology Readiness and Innovation Requirements.
    • Schedule Certainty and Acceleration Needs.
    • Project Budget and Funding Constraints.
    • Project Location and Local Conditions (Political, Economic, Social, Technological, Legal, Environmental)

  • Client/Owner Capabilities and Risk Appetite:
    • Internal Resources (technical, commercial, project management).
    • Experience with different contract types.
    • Willingness to bear risk.

  • Market Conditions and Industry Capacity:
    • Contractor availability and capability.
    • Competitive landscape and market appetite.
    • Material and labor market volatility.

  • Legal and Regulatory Environment:
    • Applicable laws, permits, and licenses.
    • Tax implications of different structures.
  • Practical Exercise: Analyzing a case study project's influencing factors and their implications.

    • Day 3: Deep Dive into Common Contracting Models

    • Traditional Models:
        • Lump Sum (Fixed Price): Characteristics, suitability, risks, pros & cons.
      • Reimbursable (Cost Plus Fee): Characteristics, suitability, risks, pros & cons.
      • Unit Rate Contracts.
      • Time & Materials (T&M).
    • Integrated / Collaborative Models:
      • Alliance Contracting: Principles, drivers, risk/reward sharing, cultural fit.
      • Integrated Project Delivery (IPD).
    • Design & Build Models:
      • Design-Build (DB) / Engineering, Procurement, Construction (EPC).
      • Engineering, Procurement, Construction Management (EPCM).
    • Public-Private Partnerships (PPPs): BOOT, BOT, BOO models and their application.
    • Other Emerging Models: Early Contractor Involvement (ECI), Framework Agreements.
    • Workshop: Comparing and contrasting different contracting models for specific project types

    Day 4: Strategy Selection Frameworks & Best Practices

      • Developing a Structured Decision-Making Framework for Strategy Selection.
    • Criteria for Evaluation: Risk allocation, commercial terms, control, flexibility, market conditions, long-term value.
    • Weighted Scoring Models and Decision Matrices for Comparative Analysis.
    • Risk Allocation Workshop and Risk Mapping for different strategies.
    • Business Case Development for the Recommended Strategy: Justification and benefits realization.
    • Pitfalls to Avoid in Contracting Strategy Selection.
    • Best Practices for Internal Stakeholder Engagement and Consensus Building.
    • Case Studies: Analyzing real-world examples of successful and unsuccessful strategy selections.
    • Laboratory Session: Applying a decision framework to select a contracting strategy for a complex project scenario.

    Day 5: Implementing, Reviewing & Optimizing Contracting Strategy

      • Translating Strategy into Action: Procurement planning and contract drafting considerations.
    • Key Elements for Successful Implementation of the Chosen Strategy.
    • Legal Considerations in Strategy Implementation (e.g., choice of law, dispute resolution mechanisms).
    • Managing the Transition from Strategy Selection to Tendering/Negotiation.
    • Monitoring and Reviewing the Effectiveness of the Chosen Strategy During Project Execution.
    • Performance Indicators for Contracting Strategy Success.
    • Adaptive Strategy: When and how to adjust the strategy in response to changing conditions.
    • Lessons Learned from Contracting Strategies.
    • Final Assessment: Developing a comprehensive contracting strategy recommendation and implementation roadmap for a challenging project.

    Assessment Methodology

    All courses conducted by EdTech will begin with a 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 will help to recognize the benefits and the level of knowledge gained by participants through the course.

    Training Methodology

    Facilitated by a highly qualified specialist, who has extensive knowledge and experience; 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:

    • ​40% Theoretical lectures, Concepts and approach
    • 20% Motivation to develop individual skill and Techniques
    • 20% Case Studies and Practical Exercises
    • 20% Topic General Discussions and interaction

    Course Manual

    Participants will be provided with comprehensive presentation material as reference manual. This presentation material is a compilation of core valuable information, references, presentation methods and inspiring reading which will be used as a part of the material guide.

    Course Certificate

    At the completion of the course, all participants who successfully accomplished the required contact hours will receive an EdTech Training Participation 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.