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Commercial Awareness (2 Day)

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Commercial Awareness (2 Day)

Course Cost £595 +VAT
Duration 2 DAYS
  • Commercial Awareness Training focuses on turning project managers into commercial individuals.
  • Importance of cash flow in project appraisal and financial aspects are emphasized.
  • Different contract types and their implications on risk allocation are discussed.
  • Payment terms, invoicing, and methods like Letters of Credit are covered.
  • Contract law essentials and case studies are used to understand contract agreements.

Overview

The Commercial Awareness Training course aims to develop participants' understanding of commercial aspects in project management. The course covers topics such as tendering risks, estimating, financial appraisal, procurement, contract types, payment terms, contract law, risk management, and execution risks. Through lectures, exercises, workshops, and case studies, participants learn to assess and manage commercial implications effectively. The course duration is 2 days, with locations available in various cities in the UK and internationally.

Who should attend

Project Managers, Contract Directors, Sub-Contract Administrators

Course Content

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.

Who Should Attend

Project Managers, Contract Directors, Sub-Contract Administrators
Course Cost £595 +VAT
Duration 2 DAYS

Experts in Construction and Infrastructure Training

1000+

Training courses available

250000+

Course hours completed

50+

Expert trainers

CITB, APS, IEMA

Accreditation training centres

12

Accreditations

Testimonials

We’ve helped thousands of professionals grow their skills and confidence. Hear directly from the people who’ve taken our training courses.

The course was exceptional, well run in terms of delivery of information, IT online course but seamless. Very interesting examples of temporary works failures applicable to the businesses we worked in. Break out activities / group examples worked very well and were again well managed by the trainer. Fantastic course, I will recommend to others! Best course I have attended in years!

CITB Temporary Works Co-Ordinator

Black & Veatch

The trainers knowledge was excellent and I liked his examples and how he could relate them to every day relatable examples that we could all understand. Coming from different industries and sectors his examples were a common ground. It was handled very well virtually and the engagement worked with his questioning and answering

Contract Management

The Pension Regulator

The training was very interactive and the tutor was excellent in engaging every course attendee and ensuring that the course content was tailored to each attendees Organisation and Company requirements

CITB Temporary Works Awareness

Kone – H &S Advisor

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