Commercial Awareness Training

INTRODUCTIONS

1. SETTING THE SCENE

The project: objectives, participants and attitudes

2. THE COMMERCIAL MANAGER

What needs to be addressed  to turn a Project Manager / Contract Director or Sub-Contract Administrator into a commercial individual.

3. TENDERING RISKS

The client’s Process for selecting bidders.

4. 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.

5. 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

6. 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.

7. 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.

8. PAYMENT TERMS

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

9. 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

10. 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.

11. 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.

Course duration: 2 Days

Cost: £575 + VAT

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