1.     SETTING THE SCENE

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

 2.       DEFINING VALUE & THE NATURE OF RISK

–         The relationship between Value, Benefit and Cost.

–         Origins of Risk and the Risk Process.

3.       IDENTIFYING RISKS

 3.1     COMMERCIAL RISKS:

• An exercise involving in identifying the bidding risks associated with an enquiry.  The delegates will identify the risks and develop the criteria for a ‘Bid – No Bid’ analysis. (NOTE this requires the Client to provide a typical enquiry document)

– A Short lecture on the Risks involved in Bonds & Guarantees.

 3.2     ESTIMATING & FINANCIAL RISKS:

•  Cost / Profit / Price
• Identify the importance of cash flow in the appraisal of projects.- Payback – Average Rate of Return and NPV. – Exercise.
  • A discussion on defining Milestones for payment and the advantages of progress payments v’s 100% upon completion.
  • Financing costs.
    • A number of mini cases which will illustrate the risks involved in the payment terms.

Estimating case study describing the methods used by the various departments of a company to prepare an estimate.

–   Using the correct estimating technique.

–   Uses of different types of estimates.

3.3     CONTRACTING RISKS:

An explanation of the basic forms of contract which will then be applied to a number of mini cases.  The cases are designed to illustrate contracting relationships and the risks involved.  The delegates will decide on the optimum contracting arrangement from both a Buyers (Client) and Sellers (Contractors) perspective.

3.4     LEGAL RISKS:

An intensive introductory lecture on the use of law in a commercial environment. Covering legal systems and processes, how contracts are constructed, 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.

– Liability & Claims.

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.

 3.5     EXECUTION RISKS:

The Montreal Olympics:  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.

 4.       ANALYSING RISKS

Categorising and Quantifying Risks.

Fault Tree Analysis: Brief exercise in determining different options for handling risks.

Creating additional value through maximizing and exploiting opportunities.

5.       MANAGING RISKS

The use of the Project Management Model as a dynamic and interactive model of Project Risk Management.

–          Managing the Contractual Relationships.

–           Consortia / JV’s / Alliances / Partnering.

 –          Transferring Risks – PFI / PPP

–           The influence of Performance Specifications.

6.       INSURANCE  (Optional Subject)

Legal requirements.

Types of cover.

Sources of Insurance.

Claims.

Tutor:

Over 40 years professional experience in the UK, Europe, The Middle East (Abu Dhabi) the Far East and the USA. For seventeen years he was a Consultant Lecturer at Cranfield School of Management.  For ten years he was Director of the Masters Course in Project Management and responsible for the Project Management Group.  As such, he was responsible for a portfolio of short courses covering project management skills and techniques from physical / technological environments to service based organisations.  In addition, developing and running in-company courses and the highly regarded E.C.I.T.B. 7 day short course for Engineering Contractors.  For three years his two day Negotiation Course was voted the best elective on the MBA Programme.

Project management within Bechtel, Kellogg and Chemico; Line management in Tendering & Proposals and Quality Assurance; together with Project Operations Management and graduate and professional staff training, and the development of a computerised system of integrated projects controls.  Earlier experience in project design management in the Power and Process industries and building services consultancy. Student and graduate apprenticeship with Babcock and Wilcox.

Member, and past Chairman, of the UK Association of Project Managers Education and Training Group, defining the Body of Knowledge required by Project Managers together with a Certification programme.  Past external Examiner for Salford University School of Management, MSc in Project Management.

Over the years he has written papers for the International Project Management Association World Congress on Project Management as well as a number of articles for leading professional publications.  Reviewer of articles and books for the International Journal of Project Management. Author of The Project Managers Guide to Purchasing –  Contracting for Goods and Services, published by Gower.

Duration: 2 Days