Commercial Awareness (2 Day)

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Commercial Awareness Training

Course Outline

INTRODUCTIONS

1.       SETTING THE SCENE

A video of a real project illustrating the attitude of the various parties involved in a project and the commercial implications.

2.       THE COMMERCIAL MANAGER                        (Brainstorming Session)

Brainstorming session to identify all the issues that need to be addressed in order to turn a Project Manager / Contract Director or Sub-Contract Administrator into a commercial individual.

3.       TENDERING RISKS                                         (Discussion & Exercises)

The Client’s Process for Selecting Bidders.

An exercise involving in identifying the bidding risks associated with an enquiry.

Enquiry Exercise by Fax.

4.       ESTIMATING (Lecture)

Estimating lecture describing the approaches to estimating and using the correct estimating technique in order to define the base line for the procurement of materials.

  • Elements of Estimating
  • Estimate planning sequence
  • Make-up of an Estimate
  • Contingencies.
  • Cost / Profit / Price.

5.       FINANCIAL APPRAISAL                                          (Lecture & Exercise)

Identify the importance of cash flow in the appraisal of projects:

  • Cash v’s Profi
  • Payback – Average Rate of Return
    • The time Value of Money -NPV.
    • Which Would You Pick’ – (HVAC) Exercise.

6.       PROCUREMENT & TENDER ASSESSMENT       (Workshop & Exercise)

  • Determination of the criteria in selecting tenderers (Brainstorming session).
  • Which would you Pick’. Attitudes in choosing the supplier (Exercise)
    • The marking criteria and the pros. & cons. of weighted evaluations.

7.       CONTRACT TYPES                                              (Lecture & Exercises)

How the different types of contract determine the allocation of risk and the degree of effort for project control.

  •  The division of work and the performance of work.
  • The advantages and disadvantages of the different forms of contract.

A number of mini case studies. The delegates will decide the best way to allocate the risks and set up the contracting relationship between the parties involved. The delegates will decide on the optimum contracting arrangement from both a Buyers (Client) and Sellers (Contractors) perspective.

8.       PAYMENT TERMS                             (Lecture / Discussion & Exercise)

  • Lump sum / reimbursable contracts.
  • The importance of invoicing on time.
  • Payment procedures.
  • Methods of payment – Letters of Credit.
  • Bonds and Guarantees.

Some mini cases to illustrate the commercial issues involved in payment terms.

9.       CONTRACT LAW                                                   (Lecture & Exercise)

An intensive introductory lecture on the use of law in a commercial environment. Covering how contracts are constructed and the vital elements of a contract

  •  Definition of a contract. Offer & acceptance, consideration, intention and capacity.
  • Discharge of a contract. Agreement, performance, breach, frustration, express contract terms etc.
  • Time is of the essence.
  • Letters of intent / Intention To Proceed. Instruction To Proceed.
  • Liquidated Damages.

A case study in the application of contract law to determine if a contract has been agreed.

An interactive session where typical FIDIC contract terms will be used to evaluate how the Client or Contractor should react to a series of problems on a project.

10.     RISK MANAGEMENT                                                               (Lecture)

The use of the Project Management Model as a dynamic and interactive model of Project Risk Management.  The Principles of Risk Identification, The Risk Register, Risk Analysis and Response.

 11.     EXECUTION RISKS (Time Permitting)                                    (Exercise)

An Olympics Case Study: A case study to illustrate the nature of different risks inherent in a project. The delegates will work in syndicates to identify as many risks as possible.

Course duration: 2 Days

 

Commercial Awareness Training Scotland, Inverness, Aberdeen, Glasgow, Edinburgh, Dunfermline and other sites throughout the UK including onsite closed company courses are available.

Commercial Awareness Training Saudi Arabia, Bahrain, Kuwait, Qatar, Abu Dhabi, Dubai, India, Ghana and Nigeria is also available.

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