For complex projects, the preferred contract module used is the EPCIC (Engineering, Procurement, Construction, and Installation & Commissioning) Contract. Though it is the preferred method, it is not without its issues and mastering the ins and outs of EPCIC contracts will prove to be a worthwhile endeavor in minimizing risks and liabilities. This EPCIC Contracts Management training course is specifically designed to address the key issues as it relates to all the parties involved in 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.
By the end of the program, participants will be able to:
- Understand the current global, local and financial environment for EPCIC contracts
- Examine and analyse the difference between with EPCIC contracts & EPCM and appreciate the underlying legal principles
- Assess operational, commercial, legal and financial risks in EPCIC contracts
- 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
Day 1
EPCIC Overview, Legal Framework & Contract Structure and Risk Allocation
- Maximizing parties rights and interests with appropriate contracting strategy
- Contractor’s single point of responsibility
- Split contract structure
- Exercise in choosing the right contract structure for your project
- Exercise in preparing for the tender exercise, tender and award. Discussing and analysing different strategies
Day2
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
- Finalising 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
- Indemnities and other liabilities, MAC clauses, HSE
- Changes in Law and regulations in host country & stabilization clauses
- Political Risk Insurance
- Force Majeure & Termination for cause and without cause
- Case study & drafting exercise
Day 4
Essential Aspects of Risk Management Strategies
- Design, Technology & Process Risk ;
- Procurement & Specification risk
- Variations and cost impact
- Payment and multi- currency contracts
- Delay and liquidated damages
- Completion and testing & effects of acceptance
Day 5
Contract Completion – Critical Issues
- Acceptance of punch list of defects - What is the effect?
- Passing of tile and risk - safety & insurance
- Warranties and Guarantees
- Passing of Intellectual Property rights
- Defects - Exculpatory Clauses
- Dealing with disputes – considering the different options
- Discussion on issues participants have faced and how it was handled
- Contract / Project Professionals
- Commercial Contract Professionals
- Commercial Operation Professionals
- Contract Engineers
- Procurement supply chain professionals
- Risk manager / Contract Risk professionals