Managing Contractual Risk (L5M3)

1.2 Analyse the various elements of contractual process on overall risk

• 1.2.1Indemnities and liabilities
• 1.2.2Contractual risk of insurance
• 1.2.3Guarantees
• 1.2.4Liquidated damages guarantees
• 1.2.5Payment
• 1.2.6Delivery and completion
• 1.2.7Force majeure
• 1.2.8Sub-contracting

2.1 Analyse types and impact of contract breach

• 2.1.1Minor breach
• 2.1.2Material breach
• 2.1.3Fundamental breach
• 2.1.4Anticipatory breach
• 2.1.5Repudiation

2.2 Compare and contrast the methods to manage breach of contract

• 2.2.1Formal versus informal action
• 2.2.2Negotiation
• 2.2.3Litigation and implications
• 2.2.4Alternative dispute resolution: mediation, arbitration, conciliation, ombudsperson

2.3 Explain options to mitigate the consequences of a breach of contract

• 2.3.1Sub-contracting and novation
• 2.3.2Use of liquidated damage provisions
• 2.3.3Managing reputational damage
• 2.3.4Making claims and management of the process

3.1 Contrast remedies that apply to the nonperformance of contracts in procurement and supply

• 3.1.1Contract non-performance, remedies, service credits, and the relationship with contract breach
• 3.1.2Contractual provisions as remedies for contract non-performance
• 3.1.3Default clauses as remedies for contract nonperformance
• 3.1.4Assessment of consequential loss as a remedy for contract non-performance
• 3.1.5Liquidated damages, unliquidated damages, and penalty provisions as remedies for contract nonperformance
• 3.1.6Serving notice as a remedy for contract nonperformance

3.2 Analyse the legal consequences of terminating a supplier relationship for non-performance in procurement and supply

• 3.2.1Contract termination and amicable dissolution
• 3.2.2Drafting and issuing termination notices
• 3.2.3Assessment of damages
• 3.2.4Contractual warranties and conditions
• 3.2.5Specific performance
• 3.2.6Termination clauses