Commercial Awareness
- Online Commercial Awareness Training focusing on project management, procurement, and risk analysis.
- Course aims to develop commercial skills for project managers and contract administrators.
- Topics include tendering risks, estimating, financial appraisal, and contract types.
- Emphasis on cash flow importance, contract law, payment terms, and risk management principles.
- In-depth exploration of contract types, payment procedures, and risk identification techniques.
Overview
The Online Commercial Awareness Training course aims to develop participants' commercial skills in project management and contract administration. It covers topics such as tendering risks, estimating techniques, financial appraisal, procurement assessment, contract types, payment terms, contract law, risk management, and execution risks. The course duration is 2 days.
Who should attend
Project Manager, Contract Director, Sub-Contract Administrator
Course Content
Online Commercial Awareness Training
Commercial Awareness Training
INTRODUCTIONS
- SETTING THE SCENE
The project: objectives, participants and attitudes
- THE COMMERCIAL MANAGER
What needs to be addressed to turn a Project Manager / Contract Director or Sub-Contract Administrator into a commercial individual.
- TENDERING RISKS
The client’s Process for selecting bidders.
- ESTIMATING
The approaches to estimating and using the correct estimating technique to define the base line for the procurement of materials.
- Elements of Estimating
- Estimate planning sequence
- Make-up of an Estimate
Cost / Profit / Price.
- FINANCIAL APPRAISAL
Identify the importance of cash flow in the appraisal of projects:
- Cash v’s Profit
- Payback – Average Rate of Return
- The time Value of Money – Net Present Value (NPV)
- Ranking projects using Profitability Index (PI)
- Measuring progress during the project using Earned Value (EV) calculations
- PROCUREMENT & TENDER ASSESSMENT
- Determination of the criteria in selecting tenderers
- Attitudes in choosing the supplier
- The marking criteria and the pros. & cons. of weighted evaluations.
- CONTRACT TYPES
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.
- PAYMENT TERMS
- Lump sum / reimbursable contracts.
- The importance of invoicing on time.
- Payment procedures.
- Methods of payment – Letters of Credit.
- Bonds and Guarantees.
- CONTRACT LAW
An introduction to the use of law in a commercial environment.
- 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.
- Understanding FIDIC contact standards
- RISK MANAGEMENT
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.
- EXECUTION RISKS
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.
