- 3 April 2019
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Contracts and Procurement SIG
Lessons from Carillion collapse 2: 10 ways to protect yourself through the contract webinar
The Carillion collapse in early 2018 seemingly took many by surprise as they were ‘too big to fail’. This webinar will look at the provisions that can go into a contract that offer some protection; both financially and in terms of being able to manage the situation, should a provider start to fall down the slippery and accelerating slope into insolvency. By the end of the webinar you will know what each provision is, why it is useful, and when to use it. You will also appreciate some of the more common hazards.
This webinar will cover:
- How the contract can help the parties
- Top ten contract provisions:
- General supplier obligations to perform leading up to insolvency.
- Payment mechanism: Prompt payment terms, cashflow, retentions, advance payments, Project Bank Accounts.
- Benefits and Earned Value: records / measurement for works completed / in progress / not paying too much too soon.
- Change control.
- Client direct purchase of materials and implications.
- Collateral warranties, priority and step-in rights.
- Monitoring provisions and duty to notify.
- Insolvency of nominated sub-contractors.
- The site: physical control and insurance.
- The impact of insolvency on liabilities and indemnities.
- Hazards and pitfalls
- Termination provisions: why, how much and how, including different forms of insolvency and how to approach when in private or public sector.
- Title and ownership of materials: devices including IP, bonded goods and materials, escrow.
- Project security: PCG, PB, surety and due diligence.
- Risk flowdown: supply chain considerations.
- Ensuring the “balanced project basket”.
- Final Q&A’s
This is the second of three planned webinars on provider insolvency. The first one looked at selecting a solvent provider, while the last one will look at what to do when a provider starts to unravel on your project, using lessons learnt from an experienced project manager.
Sarah Schütte is a UK-qualified solicitor-advocate and runs her own legal and training consultancy, Schutte Consulting Limited. Sarah has over 16 years’ experience, including over 10 years in industry, working with a wide variety of industry clients to support their projects, disputes, corporate and project risk management and insurance strategies, and training programmes, both in the UK and abroad.
Sarah has developed a niche practice in planning, programming and project management (PPM and P3M), project controls and the law. She advocates confident and competent contract and commercial management, and focuses on putting law into practice so that project management practitioners develop essential knowledge and skills.
Dr Jon Broome is the managing consultant of leading edge projects consulting ltd, Chair of the Contracts & Procurement SIG and a trustee director of APM. He also runs his own investment portfolio, investing directly in individual companies.
APM Body of Knowledge 6th edition reference
Also in this webinar series:
Lessons from Carillion collapse 1: select financially sound provider webinar
Thursday 21 February 2019
"This webinar looked at the indicators of future company insolvency, including a look at the clues in the Carillion accounts, to illustrate the points made. It will be of use to those who select providers, and those who monitor their financial viability once a contract has been entered into."
A write up page for the webinar, with embedded resources has been published on the SIG microsite page.