Engineering and Construction Contract Management Certificate Program (ECCM Workshops 1, 2, 3, 4, 5, 6) Certified Program
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1 Engineering and Construction Contract Management Certificate Program (ECCM Workshops 1, 2, 3, 4, 5, 6) Certified Program 458 برنامج إدارة العقود الھندسية وعقود التشييد المتكامل معتمد عالميا 10 October 4 November 2010, Dubai / UAE Description: Today s competitive and complex construction industry requires careful consideration in the formation of the construction contract to ensure that it is equitable, the specifications and timetable are feasible, and that liability and obligations are clearly defined. Properly prepared contractors, subcontractors, architects, engineers, and developers can thus avoid anticipated problems, reduce performance disputes and receive payment for work performed. Deciding who is best suited to conduct the various parts of the work, and negotiating appropriate contract terms and conditions are very important elements of the project strategy. The preparation, bidding, negotiation and contract award phases are usually a short but vital part of the selected project delivery method. Scheduling project activities is one of the most important elements of project management, along with identifying project costs which are a function of its duration. Understanding and establishing such a relationship is very important to calculating the cost impact of project acceleration and compression. Efficient resource management is also essential to control project costs, so it is very important to establish the resources needed and their profile, and perform resource leveling and allocation to meet the schedule needs. This course is also designed to systematically cover the developmental subjects vital to training competent contract and field administrators to manage time, cost, documentation and disputes during this important phase. Field administration is a critical process in achieving successful facility construction. Most organizations cannot afford the personnel time to apprentice a field administrator in training. This course will focus on the legal, technical and personal responsibilities involved in observation, supervision, and coordination of on site construction, as well as contract 1/1
2 close out, all of which are essential in administering the contacts required by today s complex projects. This course will analyse the issues when a dispute arises during construction and examine its time and cost impacts on a project, thus preventing the dispute from becoming a claim. It is very important that a more cost effective procedure be put in place to resolve such disputes amicably by the parties before project close out. You will also learn how to deal with contract claims since most projects are modified and changes are made within and outside the scope of work, also how to prepare and negotiate a settlement, and produce a counterclaim if needed. The course will help you resolve such claims in a more effective manner and avoid lengthy and expensive litigation. This workshop is also designed to build negotiation and mediation skills, and then to move beyond skills to a strategic awareness of the choices negotiators and mediators make in facilitating dispute resolution. You will examine in detail the elements of interest based negotiation and mediation, while maintaining relationships. The different aspects of arbitration will be discussed, and how to prepare for and proceed with arbitration. In case the arbitration fails, you will learn how to deal with litigation. The role of expert witnesses will also be examined Emphasis will be given to using the civil law code as the legal framework of the contract, and the applied concepts will be outlined. Objectives: The aim of this course is to enhance the awareness of consultants, employee engineers, architects and surveyors regarding their rights, responsibilities and legal liabilities and the methods of managing risk to achieve their project objectives. It will also give a broad overview of legal problems encountered by construction professionals in the industry. This course will also provide comprehensive instruction on key issues which public sector and private sector contracting authorities and contractors need to focus their attention, from early planning to contract tendering and awarding, with emphasis on the applicable law. The issues considered include the definition of objectives, analysis of risks and likely costs; possible contract structures and types of pricing; technical and financial evaluation of potential contractors; 2/2
3 invitations to tender; important contractual terms and conditions; preparation and submission of bids; evaluation of bids; and contract award. The techniques for scheduling a project, how to establish time cost relationships, resource management methods, different types of cost estimates, and expanding one s cost estimating skills will also be explained. Practical examples will be given to increase familiarity with the various methods and their components, with the goal of preparing cost estimates, budgets and project schedules as accurately as possible. You will also be taught how to identify management responsibilities, develop your communication skills, learn effective administrative responsibilities, understand legal requirements, structure effective record keeping methods, and promote good organizational and contract close out procedures. This course will also prepare you to analyze dispute causes and their impact on the time and cost of a project, and to effectively assess the parties entitlements in order to negotiate an amicable settlement. Finally, this course will expand your knowledge of negotiating and mediating and improve your practical skills, through role plays, to become more effective in resolving disputes in an amicable manner. The course will also help you to better understand how arbitration works, the role of the expert witness in this process, and how to deal with litigation if all else fails to resolve the matter. After participating in this course, you will be able to: Examine claims arising from construction Distinguish clearly among the roles and obligations of the contractor/consultant/employer/contract manager Protect yourself in construction contracts by applying the knowledge gained from this course Analyze special risk and liability issues Apply your knowledge to manage construction projects Know your legal responsibilities as architect, engineer, contract manager or consultant Minimize your exposure to liability Learn steps that you must take to protect yourself when involved in a lawsuit 3/3
4 Conduct the contract preparation and bidding to the contract award process with the knowledge of the relative responsibilities of each party involved Pre qualify bidders using the qualifications suited to your project Distinguish among the types of bid calls and types of contracts Use knowledgeably bonds and insurance Make productive use of the bidding period while the contractor is putting together a bid Reduce surprises with the knowledge of how contractors approach the preparation of their bid, what are their criteria for mark ups, and what procedures they use to assemble and finalize the bid Use new methods of bidding being contemplated by the industry Deal appropriately with the low bid when it exceeds the owner s available financing Select a contractor and get construction underway without delay. Understand scheduling techniques and cost estimation methods Differentiate between the various types of activities, floats and cost estimates Prepare a budget cost estimate, project schedule, and project cash flow Identify building system alternatives and critical activities in a project and the time cost relationship Understand life cycle costing and resource management Expand your cost estimating understanding and project scheduling skills Perform project time analysis and cash flow, cost and schedule control, resource allocation and leveling Identify management responsibilities Use effective communication skills Understand effective administrative responsibilities Understand legal requirements Structure and use effective record keeping methods Promote good organization procedures Avoid dispute and claims Who Should Attend Contractors, sub contractors, architects, engineers, employers, developers, supplies, contract managers, consultants, specification writers, government employees, public sector employees, public institutions, financiers, bankers, legal advisors, arbitrators, insurance agents, Buyers of construction; owners, developers, plant managers, real estate building managers; officials of government agencies responsible for bid calls; architects, building design engineers, civil engineers, 4/4
5 interior designers, project managers, contract administrators, manufacturers, suppliers; officers of construction associations, officers of project management firms and construction management firms; bonds and insurance providers; lawyers, arbitrators, mediators, as well as related university and technical college lecturers and students, Project Managers, Architects, Engineers, Construction Managers, Design and Construction Professionals, architects, engineers, contractors, owners and government agencies; construction inspectors, construction managers, project managers; and others responsible for effective field administration in building construction, Quantity Surveyors, Financiers, Lawyers, Legal Advisors, Project Managers, Design Consultants, Loss Adjusters, Registered Arbitrators and Insurance Consultants Senior Management, Project Management, Construction Managers, Site Engineers, S Project Control Engineers, Financials, Contract Engineers, Planning and Cost Control Engineers Course Director Prof. Sami M. Fereig, B.Sc. (Hons), M.Sc., M.A. Sc., Ph.D., P.Eng., F.ASCE Prof. Sami M. Fereig has over forty years experience in structural engineering, construction engineering and management, and construction dispute management. He has practised in both North America and the Middle East, and is actively involved in construction contract administration and project and dispute management with a number of organizations, including public sector and private sector companies in engineering and construction. He is the Director of the Certificate Program in Conflict Management for Project and Contract Managers at Conrad Gebel University College at the University of Waterloo, Canada. He was, for 28 years, a professor of civil engineering and construction management at Kuwait University. He has numerous publications in his various areas of specialization, including a five volume set of textbooks covering all aspects of contract management (in Arabic). He is a member of the ADR Institute of Ontario, the Professional Engineers of Ontario, AACE International, PMI, and a Fellow of the American Society of Civil Engineers. For more details, visit Prof. Sami s website at sami.com Course Curriculum: Day 1 Managing Construction Risks 5/5
6 Project Life Cycle Reviewing the Fundamentals of Project Risk Management Risk Identification and Classification Risk Priorities Risk Allocation Contractual Risk Allocation Reducing Risk When Selecting Construction Projects Contractual Risk Management Case Study Day 2 Legal Aspects of Construction Contracts: The Law of the Contract: Civil Law, Common Law, Administrative Law Basic Contract Law Basic Principles: Mandatory and Complementary Rules in Civil Law Elements of Contracts Sources of Obligation under Civil Law Enforceability of Contracts Principles of Interpretation Damages Force Majeure Unforeseen Conditions Assignment of Rights Redemption of Breach Limitation Period Warranties Notice Requirements Case Study Day 3 Parties Obligations 6/6
7 Day 4 Types of Relationship: Contractor, Agent and Employer General and Particular Conditions Obligations of the Parties: Contractor, Designer, Employer, Contract Manager Role of the Engineer in Construction Contracts Change Clauses Time is of the Essence Case Study Conclusion Introduction and Participants Objectives Characteristics of the Construction Industry Importance of Tendering in the Construction Industry Tendering Systems Preparing Construction Documents Project Manual Concept Forms of Agreement Conditions of Contract Master Format Overview Section Format Overview Page Format Overview General Requirements Division One Methods of Specification Specification Writing Substitutions Submittals Bid Documents Invitations to Bid Instructions to Bidders Information Available to Bidders Bid Forms and What They Represent Supplementary Bid Forms Attachments to Bid Forms 7/7
8 Unit Prices, Alternate Prices, Separate Prices, Itemized Prices, Identified Prices 1 Nominated Sub Contractors and Manufacturers Contract Price/Contract Time 1 Privilege (Exculpatory) Clauses 1 Form of Contract/General and Supplementary Conditions Case Study Thursday & Friday are weekends Day 7 Selecting Contracting Strategies and Procurement Methods Standard Forms Stipulated Price Contracts Unit Price Contracts Cost Plus A Fee Contracts Design Build Contracts Construction Management Contracts Selecting an Appropriate Form of Procurement to Minimize Disputes Designing a Dispute Resolution System Bonding and Insurance Requirements Differences between Bonds and Insurance Bid Bonds Performance Bonds Other Bonds Case Study Day 8 Pre Award Considerations Importance of Pre Award Meeting Employer Supplied Materials, Equipment and Services Bid Bonds 8/8
9 General Aspects of Tendering, Bidding and Awarding Advertisements for Bids on Public Works Projects Advertisements for Bids in the Private Sector Pre Qualification Value Engineering Constructability Review The Decision to Bid Plan Deposit Bidding (Estimation) Period Accuracy of the Bidding Information Instructions to Bidders Addendum Bid Form Modification and Withdrawal of Bids The Award Mistakes in Bids Case Study Conclusion Day 9 The Art of Planning Fundamentals of Project Time Management Establishing the Project and Work Breakdown Structure Developing the Schedule Project Network Logic Arrow Diagram and Precedence Diagram Case Study Day 10 Time Analysis Critical Path and Floats Bar Charts Time Cost Relationship 9/9
10 Project Compression and Acceleration Resource Planning, Leveling, and Allocation Project Controlling and Monitoring Case Study Day 11 Introduction to Estimating Types of Estimates Direct Costs Indirect Costs Cost Control Process Earned Value Case Study Day 12 Cost Management Process in Planning and Design Introduction to Project Budgeting and Concept Estimating Budget Estimating Approaches Parametric Systems Budget Estimate Concept Design Estimating Approaches Life Cycle Costing (LCC) Value Engineering Cash Flow Analysis Conclusion Friday & Saturday are weekends Day 15 10/10
11 Project Documentation and Control Systems Contract Administration in the Field Roles of the Parties Legal and Contractual Roles Pre Construction Activities Keeping Good Records Definition of Records Hierarchy of Records Types of Records The Record as a Constructive Tool in Disputes Construction Documents as Pivotal Communication Records and Tools Keeping Conference and Meeting Records The Documentation Process Organization of Forms for the Field Administrator s Record System Designing the Record Forms: - Essential Elements: Lean and Effective - Processing the Form Standard Pre printed Forms: - What s Available - Source Application of Forms for Specific Uses On Site Coordination Meetings and Communication Measures to Minimize Disputes Documenting Possible Claim Activity Claim Protection and Mitigation Case Study Day 16 The Legal and Contractual Role of the Field Administrator As the Employer s Representative: Centre for all Communications As an Observer: To Monitor the Progress of Work As a Certifier: Of Progress Payment, Substantial Completion 11/11
12 As an Interpreter: Clarifier of Contract Documents As a Modifier: Changing Orders and Making Minor Change Orders As a Judge: Responsibility of Separate Primes As an Arbitrator: Disputes between Employer and Contractor As an Evaluator: Shop Drawings and Samples As an Inspector: Punch List Preparation Communications among the Participants during Construction Phase Basis for all Communication The Chain of Command The Formal vs. the Informal The Implied vs. the Explicit When Not to Communicate Extent of Distribution Other Means of Communicating Day 17 Substantial Completion and Project Hand Over Commissioning and Handing Over Substantial Completion Preparation of Punch List Starting of Systems Conclusion Day 18 Applicable Laws and Laws of the Contract Rights and Obligations of the Parties Damages and Compensations Dispute and Claim Causes and Their Impact Suspension of Work Re sequencing of Work 12/12
13 Variation Orders Variations in Estimated Quantities Differing Site Conditions Defective Specifications and Drawings Acceleration of the Work Force Majeure Termination for Convenience Termination for Default and Re procurement Claim and Dispute Management and Prevention Case Study Thursday & Friday are weekends Day 21 Claims for Unforeseen Conditions at the Start of the Job Contractor s Obligation to Investigate the Site Employer s Obligation to Give Information About the Site Unforeseen Behaviours or Conditions Claims for Variations Variation Order Cost Estimates Job Factors Affecting Productivity Overhead and Profit Reservation of Indirect Costs Forms for Pricing Changes Case Study Day 22 Evaluation of Claims Related to Project Scheduling Techniques for Proving Delay with CPM Concurrent Delays 13/13
14 Acceleration/Job Compression Checklist for Use of CPM in Litigation Claims for Delay Cost Estimation for Variations and Delays Contract Stipulations to Calculate Cost of Variations Scheduling Provisions Emphasis on Network Analysis Techniques Job Acceleration/Compression claims for Disruption The Relationship Between Loss and Expense and Extensions of Time Case Study Day 23 Damages for Delay in Construction Projects Whether to Liquidate or Leave Damages Un liquidated The Assessment and Proof of Damages for Delay The Relative Merits of Liquidated vs. Un liquidated Damages How to Liquidate the Right Sum How Precise is the Reliable Pre Estimate Counterclaims against the Contractor Set Off Claims by the Employer Liquidated Damage Claims by the Employer Claims by the Employer Arising from Defective Materials and Workmanship Claims by Sub Contractors for Money Arising from Delay and Disruption Caused by the Contractor under the Contract Day 24 Building Collaboration Impact of Litigation on the Development of Disputes Options for Resolving Disputes 14/14
15 Key Elements of a Negotiation Defining and Understanding Interests Dealing with Rights and Power Moving from Positions to Interests Distributive vs. Integrative (Interest Based) Negotiation Structuring a Negotiation Key Communication Skills Working with BATNAs Dealing with Positional People and Dirty Tricks Role Play Day 25 Mediation Knowledge, Skills and Attitudes Needed by Mediators Mediation Process Overview The Five Tasks in Mediation Caucusing Anticipating and Resolving Impasses Role Play Day 26 ADR vs. Arbitration Time, Cost and Finality Advantages and Disadvantages Where to Use Each and Where Not to Do So Arbitration 15/15
16 Features Arbitration Under FIDIC Contracts Institutional and Ad Hoc Domestic and International The Law of Arbitration and the Rules of Arbitration The Various Stages in Arbitration The Appointment of Arbitrators The Preliminary Meeting Procedural and Substantive Matters Evidence Expertise The Hearing After the Hearing The Award Conclusion Litigation Applicable Laws Legal Requirements and Procedure Expert Witnesses Amicable Settlement Course Language : English/Arabic Course Manual: English Course Fee : US$ 8,500 16/16
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