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Best Practice in EPC&EPCM Contract Management Master Class

22-23 March, 2018 Shanghai
In-depth learning in EPC/EPCM contract management to maximize your contract performance by successful negotiating and potential legal & fiscal risk mitigating.

Course facilitator
G. Jean Kowalski
G. Jean Kowalski is a guru with more than three decades of international experience in large and complex international construction and infrastructure projects. She has drafted and advised on bespoke and standard form construction contracts, including EPC, EPCM, EPCIC, BOOT and DBOM contracts, as well as services, consultancy, supply, guarantee, security and project finance agreements. Jean has rich experience throughout the construction process, advising sponsors, owners, suppliers and contractors during pre-contract negotiations, contract administration and post-contract dispute resolution.
The technical background (in chemical engineering) combined with her legal training enables her to comprehend and anticipate the execution and technical risks inherent in projects. She has experience with both non-contentious and contentious matters in relation to oil and gas, petrochemicals, power, water, mining and minerals and infrastructure.
Jean was the Chief Commercial Officer for Ausenco Services Pty Ltd, an international provider of professional services in the areas of energy, environment and sustainability, minerals and metals process infrastructure and program management.
Jean worked for more than 20 years in senior legal positions in Aker Solutions in the Netherlands, China and Malaysia, holding the position of Vice President, Legal and Commercial in all locations. Prior to joining Aker, Jean was Senior Vice President of
Foster Wheeler Government Services Corporation in the USA.
Benefits of Attending
Determining the correct form of EPC/EPCM contract to pursue can have a great effect on the cost and risk associated with your particular project & situation.
Learning the best practice in drafting EPC contract for allocating risk and reward to the parties' mutual advantage.
Adopting tailor-made EPC/EPCM contract methods to individual project or owner's needs for reaching best performance.
Planning a EPC/EPCM project to ensure successful delivery and stakeholder satisfaction.
Estimating and schedule task work and duration with confidence.
Knowing indemnities and limitation of liability and commonly accepted exceptions to capped liabilities.
Limiting your liability to safeguard a sustainable operation throughout project life-cycle.
Obtaining the best price with manageable risk through successful bidding & negotiating.
Sharing the best tips for winning negotiation strategies in EPC & EPCM contacts.
Managing the best contract execution strategies via effective monitoring and notification tools.
Analyzing the recent trends in arbitration - an analysis of some recent case law, including jurisdiction of courts and grounds for challenge of an arbitral award.

Who Should Attend
Contracts and Procurement Managers
Bidding Managers
Commercial Managers
Project Managers/Engineers
Process/Production Engineers
Subcontracts Management Executives
Senior Legal Managers
Business Development Managers
Corporate Planners
Design Engineers
Construction Superintendents

Day One:
22, March, 2018
Review of contract formation principles
•Tort VS contract
•What constitutes the contract documents: implied and express terms
•When is a contract effective
•Letters of intent
•Battle of the forms
Case Study
10:30-10:45: Coffee Break
Considerations in choosing the optimum contracting format
•Contracting options
•Priorities of the project owner
•Mechanics of project approval
•Requirements for total project cost certainty
•Schedule considerations
•Risk recognition in selection of contract mode
•Market dynamics: is it a buyer’s or seller’s marketplace
•Are there sufficient qualified bidders and subcontractors
•Maturity and ownership of the technology involved
•Political stability at the site
•Local regulatory restrictions
•Optimization with respect to taxation
•Insurance considerations
11:45-12:30: Case study
12:30-13:30: Luncheon
Drafting the head contract – allocating risk and reward to the parties’mutual advantage – part 1
•General philosophy of the owner and the contractor
•Pricing basis: fixed and firm or rising up
•Payment mechanism and protections
•Schedule protection
•Changes: definitions and disputes
•Warranties: types and allocation of repair costs
14:45-15:30: Exercises and Case Study
15:30-15:45: Coffee Break
Drafting the head contract – allocating risk and reward to the parties’mutual advantage – part 2
•Limitations on liability:people, property, consequential damages, overall
•Termination, cancellation, schedule extension and compression
•Allocation of other risks between contractor and owner
•Insurance as a risk management tool
•Guarantees, bonds and letters of credit
•Administrative requirements
•How the governing law affects contract terms
•Dispute resolution techniques
Exercises and Case Study ——End of Day 1

Day 2:

23, March, 2018
Bidding and negotiating the head contract—how to get the best price with manageable risk
• Factors influencing a decision to bid for an EPC or EPCM contract

◐ Price of bidding versus expected profit
◐ Ability to back up a bid with adequate subcontractor pricing
◐ Availability of joint venture partners
◐ Available capacity within the contractor’s organization
◐ Adequacy of bidding period
◐ Number and quality of other bidders
◐ Financial condition of the owner and contractor
Preparation of an EPC or EPCM bid
◐ Identification of key players:joint venture partners and nominated subcontractors and vendors
◐ Alignment of key bidding players:are appropriate agreements in place
◐ Techniques for identifying key risks and either pricing or excluding them
◐ Pricing strategy, currency protection, taxation and insurance
◐ Techniques for addressing inadequacies in inquiry documents
Negotiating techniques for attaining best price with acceptable contract terms
◐ What is the relative bargaining power of the parties?
◐ What risks can be transferred to subcontractors and vendors
◐ Transfer of risks versus changes in price
◐ Can the bid be “sweetened” with incentives?
◐ Evaluating the cost of money:payment terms, financing
10:30-10:45: Coffee Break
Managing the head contract – best practices in EPC/EPCM contract execution

The right start:project initiation methodologies
◐ Adapting the proposal to the as-sold contract conditions
◐ Establishing a price base line
◐ Informing the project team of key contract terms
◐ Establishing communication channels
• Monitoring the contract execution
◐ Utilizing a risk listing to proactively control risks during execution
◐ “Gate” reviews for establishing project progress
◐ Change register for monitoring identification and resolution of changes
◐ Periodic project audits by non-project personnel
• Notifications:how and when
• Establishing a paper trail
• Breach of contract:definition and remedies
• Roles of project sponsors and steering committees
• Closing out the project

◐ Defining when the work is finished
◐ Close-out reports:actual versus as-bid costs, profit, schedule
◐ Lessons learned:avoid repetition of identified bidding and execution mistakes
What is required after the “completion” of the work
◐ Who monitors warranty obligations
◐ Have all bonds and guarantees been closed out
◐ Retention payments
◐ Insurance requirement
Case Study
12:30-13:30: Luncheon
Negotiating and managing equipment supply orders and construction contracts
• Supplier and contractor selection
• Negotiating equipment orders and on-site construction contracts

◐ Head contract requirements
◐ Changes
◐ Terms of payment
◐ Security
◐ Termination rights
Managing the suppliers and contractors
◐ Setting the stage for a quality and timely project
◐ Effects of schedule delays
◐ Health and safety
◐ Claims management
◐ Bankruptcy:what if?
Supplier and subcontractor issues
◐ Pass-downs from head contract
◐ Payment protection
◐ Insurance and indemnify
Case Study
The post event workshop is organized for the delegates who are keen to adopt best practices in their organizations and would like to enhance their skill set. There shall be two plenary sessions with an objective to equip the participants with appropriate tools for immediate use.
Case Study
Continuing the relationship – operating and maintenance agreements

• Focus is on value added to the owner
• Incentives and/or penalties widely used based on established criteria
• Contract represents long term relationship rather than project duration

◐ Insurance
◐ Indemnities
◐ Warranties
• Often used to train owner’s personnel while providing experienced contractor operators
15:15-15:30: Coffee Break
This will be an interactive session, discussing actual situations involving contract formation, negotiation and/or execution, and which draw upon the material covered in the previous sessions of the seminar.


Master Land Business Consulting Company
Tel:+86(21) 36399986 Fax:+86(21) 36399912
5F,Youhao Office Center, No.433, Chifeng Rd, Hongkou District, Shanghai,200083, China