Course Introduction
EPCIC (Engineering, Procurement, Construction, Installation & Commissioning) Contract is the most commonly used form of construction contract. In particular for complex projects, the preferred contract module that is used is EPCIC. Mastering the ins and outs of EPCIC contracts will prove to be an essential tool in driving effective contracting strategies to minimize delays, cost overruns and liability issues.
This EPCIC Contracts Management in Offshore & Marine training course for both Offshore and Marine is specifically designed to address the key issues as it relates to all the parties and stakeholders who are involved in the execution of the contract. and as to the best means available to allocate and manage their risk and liabilities. Under an EPCIC model, the main contractor carries the risks for the project, they must, at the same time minimize these risks through effective contracting strategies.
Objectives
At the end of this training course, you will learn to:
- Understand the current global, local and financial environment for EPCIC contracts and assess operational, commercial, legal and financial risks in EPCIC contracts
- Examine and analyze the difference between with EPCIC contracts & EPCM and appreciate the underlying legal principles
- Appreciate the essential element of the different contract stages from pre to post tender to completion and delivery of project
- Address key issues faced during project lifecycle and how to tackle these through enforceable contractual clauses
- Avoiding drafting pitfalls and ambiguous contractual terms
Training Methodology
This EPCIC Contracts Management in Offshore & Marine training course will utilize a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. This includes exercises designed to improve and sharpen the skill sets of delegates in planning, negotiating and managing EPCIC contracts through interactive session with role playing, case studies, discussion groups and scenario building. The objective of the interactive role play is to enable participants to apply the knowledge and understanding gained at the workshop to negotiate a more effective EPCIC contract. This will help participants gain practical insights into managing the risks and enhancing their rewards.
Who Should Attend?
This Training Course will greatly benefit:
- Commercial Contract Professionals
- Commercial Operation Professionals
- Contract Engineers
- Procurement Supply Chain Professionals
- Risk Manager / Contract Risk Professionals
Course Outline
Day 1
EPCIC Overview, Legal Framework & Contract Structure and Risk Allocation
- EPCIC, EPC. EPCM Contract Structure and Strategy
- Legal formation of contracts
- Maximizing Parties’ Rights and Interests
- Contractor’s Single Point of Responsibility and Its Effects on Parties
- Fixed Price Lump Sum Contracts
- Split Contract Structures to Minimize Tax and Legal Exposure
- EPCIC used in Shipbuilding Contracts for “Floaters”and Floating Platforms
- Collaborative Contract Strategies to Avoid the “Blame Game”
Day 2
Tender Process Leading to an EPCIC Contract
- Legal, Technical and Commercial Pre-qualification of Tenderers
- Best Practices in Tender Evaluations and Selection of Tenderer
- Important of Scope of Work and Specifications and Terms and Conditions
- Exceptions – What to accept and what to deny
- Finalizing Tender Negotiations & Award
- LOI and LOA Essential Terms and Legal Effects
- Exercise on the Selection Process and Main Elements to Ensure a Successful Tender Exercise
Day 3
Negotiating Essential Contractual Terms of EPCIC Contracts
- Identifying Critical Issues in the Project Life-cycle
- Managing Cost Impact Clauses like Delay, Price Fluctuations
- Changes in Law and Regulations in Host Country & Stabilization Clauses
- Political Risk Insurance
- Force Majeure & Termination for Cause and without Cause
- Negotiating Essential Contractual Terms of EPCIC Contracts
Day 4
Essential Aspects of Risk Management Strategies
- Design, Technology & Process Risk
- Procurement & Specification risk
- Variations and Cost Impact
- Payment and Multi- currency Contracts
- Indemnities and Other Liabilities, MAC Clauses, HSE
- Delay, Liquidated Damages and Extensions of Time (EOT)
- Completion and Testing & Effects of Acceptance
- Using Contractual Clauses to Manage Liabilities and Risks
Day 5
Contract Completion & Dispute Resolutions – Critical Issues
- Acceptance of Punch List of Defects – What is the effect?
- Passing of Tile and Risk –Safety & Insurance
- Dealing with Disputes – Considering the Different Options
- Effective dispute resolutions in EPCIC contracts; i.e. negotiations, mediation, arbitration, litigation
- Warranties and Guarantees
- Passing of Intellectual Property Rights
- Defects – Exculpatory Clauses
- Discussion on Issues Participants have Faced and How It was Handled