Commercial Awareness

Overview:

This course covers aspects of the wider functions expected of the Project Manager in a commercial sense within the Company, and is aimed at ensuring that the Company, the individual and the client have their commercial interests protected. The course is targeted at those professionals already at project manager level, together with those aspiring to that status.

The course will focus upon Company objectives together with how those objectives relate to practice and procedure external to the Company.

The course is run on a participative basis and will incorporate case studies.

Aims & Objectives:

To provide delegates with an understanding of their responsibilities and duties as Project Managers in managing the commercial aspects of construction projects.

To demonstrate how proper management of commercial aspects can impact upon profitability.

Course Outline:

General Introduction

1) What is a contract

  • Basic Constituents
  • Breach, Variations, Damages.

2) Contracts Generally Types of contract (design & build, Bill of Quantities etc)

  • Standard Form Contracts eg JCT, IChemE, ICE
  • Bespoke contracts
  • Contract options - lump sum, cost plus, remeasure, target cost.

3) Communication Importance of clarity. Use of jargon.

  • Delegation of and responsibility for tasks
  • Ensuring the communication is understood - avoiding abortive work.
  • Free-flow of information.
  • Managing communications (eg e-mails)

4) Negotiation skills

  • "Win-win" positions
  • Tactics in negotiating
  • Team building


Pre-Contract Considerations

1) Bonding

  • Forms of protection available and their differences e.g.
  • Performance bonds, warranties, retention bonds, PCGs
  • Rights of Third Parties Act.
  • Amounts of Bonding and their effects.

2) Insurances

  • Different types of Insurance and their purposes e.g.
  • PI Insurance, All Risks etc
  • Excepted Risks
  • Differing concepts of LLP, Limited Company, Partnerships

3) Contract Viability

  • Assessing whether to tender or not/ targeting tenders
  • When to draw the line.

4) Currency & Tax

  • Appreciate issues relating to taxation regimes for domestic and international contracts.
  • Understand the effect of exchange rates on contracts when either contracting internationally or purchasing goods & services from overseas.
  • Dealing with multi-currency contracts and contracts with payment "in kind."
  • Hedging currencies.


5) Payment

  • How will payment be made
  • Letters of credit, guarantees, Cash flow, milestones

6) Partnering

  • Why partner?
  • The skills needed
  • Partnering contracts - formal & informal

7) Risk Management

  • Identification of risk on a project
  • Selection of courses of action
  • Monitoring and managing the risk


Post Contract Considerations

1) Change Management

  • Identification of Changes
  • Recording and evaluating Changes
  • Contract mechanisms

2) Programming

  • Methods of programming e.g. Arrow diagram, Gantt chart, Line of Balance, Network analysis
  • Proprietary software
  • Importance of monitoring
  • Effects on a project

 

Intended For:

All consultants involved in the delivery of professional services.

All our courses can be offered as in-house training