Contracting for EPC Projects and Services for the Energy Industry

This interactive workshop provides participants with an in-depth understanding of contracting for engineering, procurement, construction (EPC) projects and services.

Attend this highly interactive three-day course to learn how to:

  • Customise contract negotiation strategies to create win-win situation
  • Implement key performance indicators to monitor and control project performances
  • Select the right type of contract to effectively share costs
  • Evaluate potential conflicts and risk mitigation strategies to avoid losses and delays
  • Master contracting processes and methods to manage complex projects

What is the programme about?

EPC Contracts have become the preferred delivery method for many complex energy projects. Their increasing popularity is derived from the increased risk they place on the contractor, making them more attractive in an industry that seeks to more effectively share the risk and the reward. They often include multiple parties, and work across borders which brings with it its own challenges. As a commercial professional it is vital that you understand the structure, formation and key clauses of these contracts to negotiate and draft agreements that will deliver successful outcomes and limit the risk for your organisation. 

Both parties to any EPC commercial relationship in the energy sector would argue that they want a good deal. But what is a good contract? Does a good contract enable a good deal? This hands-on session will explore what is needed for a worldclass EPC commercial relationship in the energy sector, as well as the key components to an EPC commercial agreement. Get exposed to some of the important dos and don’ts in EPC contracting. Explore proven and innovative contracting strategies. Learn the value of having a contract that can be managed, and ensure your contracts reflect what you have negotiated.

 

  • Project managers, Project engineers
  • Purchasing, sourcing and supply management professionals
  • Sales contracting professionals
  • Contract lawyers and attorneys
  • Contract management professionals
  • Contract managers and administrators
  • End-users who impact, or are impacted by, the contracting process
  • Finance professionals involved in contracting
  • Contract negotiators
  • Operational managers
  • Commercial relationship managers

 

DAY 1

Establishing a Cross-Functional Team and Communication Techniques

  • Identifying internal stakeholders to support procurement activities
  • Developing a stakeholder chart for EPC projects and services
  • Benefits obtained by engaging stakeholders at the start of a project
  • Managing communications with stakeholders to improve project performance

Selecting Contractors for the Request for Proposal: (Contractor Pre-qualification)

  • Establishing a team to participate in Contractor Pre-qualification
  • Developing Contractor Pre-qualification criteria for EPC projects and services
  • Determining how the Contractor Pre-qualification criteria will be evaluated
  • Evaluating the Contractor Pre-qualification criteria and selecting qualified contractors

Developing Evaluation Criteria for the Request for Proposal (RFP)

  • Implementing effective evaluation methodologies
  • Establishing a team to participate in the evaluation process
  • Developing RFP evaluation criteria for EPC projects and services
  • Obtaining concurrence from your project team stakeholders

Issuing and Evaluating the Request for Proposal (RFP)

  • Preparing an effective RFP for EPC projects and services
  • Key sections to include in the RFP
  • Activities and communications during the proposal process
  • Receiving and evaluating the RFP’s

Workshop Training Modules


DAY 2

Understanding and Managing Risk

  • Identifying potential risks for EPC projects and services
  • Types of risk - from contract to the weather
  • Sources of risk - contractor, third party, and the environment
  • Mitigating and managing risks through development of a risk register

Understanding Different Types of Contracts

  • Confidentiality Agreements
  • EPC and other project specific contracts
  • Memorandums of Understanding
  • Master Agreements and Work Releases
  • Risk allocation clauses for EPC projects and services

Negotiating a Contract

  • Understand the mind of the energy company (the buyer of the service)
  • Understand the mind of the contractor (the provider of the service)
  • Negotiation philosophies for EPC projects and services
  • Three main components of negotiation

Negotiation Strategy and Tactics

  • Understanding the importance of negotiation planning
  • Elements of a negotiation strategy for EPC projects and services
  • Understanding negotiation tactics for EPC projects and services 
  • Anticipating the tactics of the other side - how to react and respond

Workshop Training Modules


DAY 3

Negotiation - Competitive RFP for EPC projects

  • Developing a negotiation strategy
  • Preparing for negotiations
  • Conducting a negotiation session
  • Obtaining win-win solutions and placing a value on it

Negotiation - Sole Source Contractor

  • Developing a negotiation strategy
  • Preparing for negotiations
  • Conducting a negotiation session
  • Obtaining win-win solutions and placing a value on it

Contract Implementation and Relationship Management

  • Implementing  the contract for EPC projects and services
  • Developing key performance indicators (KPI’s)
  • Building a long-term relationship after the contract is signed
  • Benefits of a well managed contractor relationship

Managing Change Orders, Conflicts, and Disputes

  • Managing potential changes to the scope of work
  • Establishing a change order process and preparing change orders
  • Establishing a dispute resolution process
  • Using mediation and arbitration options
  • Closing out the contract

 

Course Categories

Testimonials for our Courses

“Intensive Training, well organised and useful for knowledge articulation.”

 

 

Delivered by

Vice President at Bilston College in the United Kingdom, has had top managerial positions in mult

Dates & Locations



This course is only available as a custom course tailored for your business, contact us to discuss your requirements.