training@ipdc.co.id
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Contract Drafting for Procurement, Tendering & Commissioning Course

No Date Location Register
1 16 - 18 Oct 2019 Bogor Register
2 04 - 06 Dec 2019 Bandung Register

OVERVIEW

Drafting of contracts is essential to bridge a negotiation or agreement with a specific purpose or a common goal. Preparation of the contract is defined as a process to produce an agreement. Before a deal or agreement is established, the bargaining that resulted in conformity of the will, which is called negotiation. The importance of effective contract drafting can determine the success of a partnership. However, many businesses do not understand how to draft a contract properly and effectively that cause problems in the future. Basically, contract is the basis of the rights and obligations between parties in business activity. Therefore, preparation of contract negotiations are closely linked with the elements that must be done in advance because of technical negotiations act as a basic phase before formulating into constructing the clauses in the contract / agreement. A contract must be stronger to identify and minimize the risks for the organization and efficiently run proyeknyadengan minimize disputes. A contract should also focus on the specific needs of the particular business and situation can not be emphasized enough.This course is addressed to help you construct the effective contract that maximizes the benefits to the organization and minimize risk.

OBJECTIVES

By the end of this training course, participants will be able to:

  • Construct relevant contracts for various purposes
  • Examine the commercial impact of particular terms and conditions
  • Examine the impact that would occur commercially to the certain terms and conditions
  • Develop a good contract to minimize disputes between the parties
  • Handle disputes efficiently and effectively
  • Using the methodology used in international contracts

TARGET PARTICIPANTS

  • Professionalss
  • Business people
  • Entrepreneurs
  • All people who wants to use contracts3

COURSE CONTENT

THE IMPORTANCE OF CONTRACT

  • Supervising the process of contract’s construction
  • The deal involved in the contract
  • Special tricks to negotiate effectively
  • Learning the offer and acceptance
  • Learning the battle of the forms
  • Learning about the consideration and intentions

A HANDS-ON GUIDE TO DRAFTING COMMERCIAL CONTRACTS

  • What is a Commercial Contract -The contract law fundamentals & elements
  • Difference between MOU, letter of Intent, an agreement 
  • Converting MoU, Letter of Intent into a formal Contract
  • Formation of contracts - Techniques in drafting contracts
  • Introductory Provisions including Parties, Recitals, Definitions etc
  • Critical Provisions including Appointment, Conditions Precedent, Consideration, Covenants, Term & Termination, Representations & Warranties & Indemnities
  • General Clauses like Governing Law, Arbitration, Force Majeure, Arbitration etc.

TENDER PROCESS & DIFFERENT CONTRACT TYPES

  • Auctions and bids
  • Process dealing with tender
  • Inviting tender
  • Proposal’s request
  • Quotation’s request
  • Prequalification
  • Compliance
  • Letters of award
  • Heads of Terms and Letters of Comfort
  • Deciding the type of contract to be used
    • Advantages and disadvantages
    • Fixed fee to solve the problem
    • Modern methodology
  • Clauses to adjust the economic price
  • Bonds and Guarantees
  • Compliance with law/change of law

MAIN CONTRACT CLAUSES 

  • Obligation to deliver/perform
    • Controlling subcontractors
    • Monitoring and Milestones
  • Payment’s secure
  • Ensuring prompt payment
  • Nonpayment remedies
  • Learning the usage of ‘Letters of Credit’
  • Parent Company Guarantees
  • Time and place of delivery
  • Transfer of title and risk – ICC Incoterms
  • The retention of title clauses
  • The important of time
  • Delivery, Ownership and Risk in Procurement
  • Insurance
  • Indemnities – when we need them
  • Liquidated Damages/Penalties and the dangers

Other Key Considerations during the Commissioning Process

  • Variations and changes
  • Liability beyond contract
  • The value of Intellectual property
  • When do contracts end?
  • Limiting liability
  • Warranty
  • Which law to apply to the contract?
  • Final contract review and close out process

DEALING WITH DISPUTES

  • Compromise and settlement
  • Dispute Resolution clauses
  • Litigation
  • Arbitration