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Bottom Line improvement Processes
Bringing measurable Commercial Acumen to Your Business....
Public Sector Training Section

S4. Construction & Engineering Projects

Aim

The aim of this module is to provide the delegates with the Knowledge & Understanding required to manage Construction & Engineering Projects effectively and efficiently and to understand the main differentiators under this type of contract management.

Who Should Attend

The module is aimed at staff at all levels, including Directors and Senior Managers. It is applicable to staff from a wide range of business disciplines including engineering, design, project management, production, finance, sales & marketing, business development, purchasing, procurement, commercial and general management. Those who will benefit most will have a current or planned interface with suppliers through which construction & engineering contracts are negotiated and managed. The module will suit those with little or no previous involvement with construction contracting but will serve as a refresher for those who have some training but do not practice their skills frequently.

The Teaching Method

The teaching method is based on the Kolb learning cycle and incorporates a balanced mixture of a didactic approach and practical exercises centred on PowerPoint presentations. The structure is consistent with the skills framework for Procurement Project in Local Government in ensuring that Levels 1 and 2 (Understanding & Knowledge) are covered within the programme thus providing a firm base upon which the delegates can build their practical experience to reach Level 3 (Expertise). The module is tutor led throughout using syndicate work, highly interactive plenary discussion groups, easily understood case studies and role playing where appropriate. A formal framework is built around the delegates’ current knowledge and they are encouraged to re-discover and share their knowledge and experiences. The ideal group size is eight to twelve delegates but it is possible to extend the group size to fifteen. Copies of the training material are provided in the form of a workbook. Delegates are encouraged to develop both their short and long term memories to increase the value for money provided for the employer.

Proposed Learning Outcomes

In this module the delegates will gain an understanding & knowledge of the main aspects of Construction Law in England including the Construction (Design & Management) Act (CDM Regulations) and the Housing Grants, Construction and Regeneration Act. They will be given an understanding of the 3 main methods of procuring construction work - Traditional Main Contractor; Package Deal or Turnkey and Construction Management as well as PFI/PPP projects which will provide knowledge of the market and its regulations and contracting methodologies. The need for performance & contract management will be addressed through consideration of Key Performance Indicators (KPIs) linked to the procurement specification and the proposal. Understanding of the key issues of specifications, variations and change management will be an essential outcome. The delegates will learn that separation of the Design & Build responsibilities can cause problems and which result in protracted disputes and will examine ways to reduce this risk. The delegates will understand and gain knowledge in aspects of claims and dispute resolution at a general level but will also understand elements which are more specific to the construction industry such as adjudication.

Duration

The module is scheduled for 1 day.

Content

  • Construction Law in England
    • Construction (Design & Management) Act (CDM Regulations)
    • Housing Grants, Construction and Regeneration Act
    • Mandatory statutory provisions dealing with:
      • the right for either party to refer any dispute to adjudication at any time
      • the right of the contractor to stage payments
      • the entitlement of the contractor to suspend performance for non-payment by the employer
      • The prohibition of "pay-when-paid" clauses.
  • Main methods of contracting for construction work – including repair/refurbishment
    • Traditional main contractor
    • Package/Turnkey deal
    • Construction management
    • Partnering
    • Private Finance Initiatives (PFI) and Public-Private Partnerships (PPP)
  • Advantages & Disadvantages of contracting methods
  • Decision Criteria for contracting methods
    • Certainty of Out-Turn Costs
    • Time for Completion
    • Scale of the Works
  • Use of Standard Forms of Contract
    • JCT Agreement for Minor Building Works
    • Intermediate Form IFC84 for intermediate works
    • JCT98 for major works
    • FIDIC
  • Key Contract Terms & Conditions
  • Sustainability
  • Design and Build
    • Divided responsibility contracts – cause of dispute?
    • Sole responsibility contracts
  • Statements of Work
    • Contract management
    • KPIs
  • Dispute Resolution
    • Standard methods (all markets) – Negotiation; Mediation; Arbitration; Litigation
    • Construction industry option – Adjudication


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