Introduction

In the capital-intensive and highly complex realm of power projects – encompassing generation, transmission, and distribution infrastructure – the processes of tendering and contract management are absolutely critical to success. These foundational stages determine project viability, allocate risks, define responsibilities, and ultimately govern the entire project lifecycle, from initial concept to commissioning and beyond. Power projects often involve multinational stakeholders, cutting-edge technologies, and significant financial commitments, making robust contractual frameworks indispensable for minimizing disputes, ensuring compliance, and delivering value for money. Among these frameworks, the FIDIC (Fédération Internationale des Ingénieurs-Conseils) Conditions of Contract are globally recognized and widely adopted, providing balanced and comprehensive models for construction and engineering projects. Without meticulous attention to Tendering, Contract Management & FIDIC in Power Projects, stakeholders risk legal disputes, costly delays, unforeseen expenses, and project failures, underscoring the vital need for specialized expertise in these intertwined disciplines. This comprehensive training course focuses on equipping professionals with the expertise to master Tendering, Contract Management & FIDIC in Power Projects.

This training course is meticulously designed to empower project managers, engineers, legal professionals, procurement specialists, and commercial teams involved in power projects with the theoretical understanding and practical skills necessary to effectively navigate the intricacies of tendering processes, implement robust contract management strategies, and expertly apply FIDIC Conditions of Contract. Participants will gain hands-on experience in drafting tender documents, evaluating bids, negotiating contracts, managing claims and variations, and resolving disputes within the context of power infrastructure development. The course will delve into topics such as tender strategy development, risk allocation in contracts, detailed examination of the FIDIC Red, Yellow, and Silver Books, dispute avoidance and resolution mechanisms (DAAB), force majeure, liquidated damages, and the crucial aspects of contract administration specific to power projects. By mastering the principles and practical application of Tendering, Contract Management & FIDIC in Power Projects, participants will be prepared to enhance project transparency, mitigate contractual risks, optimize project delivery, and contribute significantly to the successful and secure development of vital energy infrastructure worldwide.

Duration: 10 Days

Target Audience

• Project Managers in Power Sector
• Electrical Engineers involved in large projects
• Procurement and Commercial Managers
• Contract Managers and Administrators
• Legal Professionals specializing in Construction/Energy Law
• Tendering and Bid Managers
• Consulting Engineers
• Construction Managers
• Business Development Professionals in Power Utilities/IPPs
• Quantity Surveyors and Cost Estimators

Objectives

• Understand the end-to-end tendering process for power projects.
• Learn to develop effective tender strategies and documentation.
• Acquire skills in evaluating bids for technical and commercial compliance.
• Comprehend the fundamental principles of contract law in power project contexts.
• Explore the structure and application of FIDIC Conditions of Contract (Red, Yellow, Silver Books).
• Understand strategies for effective contract administration throughout the project lifecycle.
• Gain insights into managing claims, variations, and extensions of time.
• Develop a practical understanding of dispute avoidance and resolution mechanisms (DAAB).
• Learn about risk allocation and mitigation within project contracts.
• Master negotiation skills for favorable contract terms.
• Acquire skills in managing contractor performance and compliance.
• Understand the role of insurance and performance guarantees in power contracts.
• Explore force majeure and termination clauses in FIDIC contracts.
• Develop proficiency in project close-out and final account settlement.
• Prepare to navigate complex contractual scenarios and ensure successful project delivery in the power sector.

Course Content

Module 1: Introduction to Power Project Lifecycle and Contracting

• Overview of power project phases (feasibility, design, procurement, construction, commissioning).
• Importance of effective tendering and contract management.
• Key stakeholders in power projects and their roles.
• Different contracting strategies (EPC, EPCM, D&B, traditional).
• Common risks and challenges in power projects.

Module 2: Tendering Process - Pre-Qualification and Strategy

• Market analysis and project packaging strategies.
• Developing a tender strategy: competitive bidding vs. negotiated contracts.
• Pre-qualification process: objectives, criteria, and documentation.
• Request for Information (RFI) and Expression of Interest (EOI).
• Ethical considerations in tendering.

Module 3: Tender Documentation and Bid Preparation

• Components of a typical tender document (ITT/RFP): Instructions to Bidders, Conditions of Contract, Scope of Work, Technical Specifications.
• Developing clear and unambiguous technical specifications for power assets.
• Pricing schedules and commercial terms.
• Data rooms and site visits for bidders.
• Best practices for bid submission and responsiveness.

Module 4: Bid Evaluation and Contractor Selection

• Technical evaluation criteria and scoring methodologies.
• Commercial evaluation and financial analysis of bids.
• Risk assessment of proposed solutions and contractors.
• Interviewing and due diligence on shortlisted bidders.
• Contract award recommendations and Letters of Intent (LOI).

Module 5: Principles of Contract Law in Power Projects

• Formation of a contract: Offer, Acceptance, Consideration, Intention.
• Key contractual terms: conditions, warranties, indemnities.
• Breach of contract and remedies.
• Force Majeure clauses and their application.
• Governing law and jurisdiction considerations.

Module 6: Introduction to FIDIC Conditions of Contract

• History and philosophy of FIDIC contracts.
• Overview of the FIDIC Rainbow Suite (Red, Yellow, Silver, Green, Gold).
• Key parties and their roles (Employer, Engineer, Contractor).
• Balance of risk allocation in FIDIC contracts.
• Comparison of the main FIDIC Books relevant to power projects.

Module 7: FIDIC Red Book (Construction for Building and Engineering Works Designed by the Employer)

• Application in traditional projects where Employer designs.
• Key clauses: Employer's Representative, Contractor's obligations, measurement and valuation.
• Managing variations and claims under the Red Book.
• Payment provisions and procedures.
• Dispute resolution mechanisms.

Module 8: FIDIC Yellow Book (Plant and Design-Build)

• Application in EPC/Design-Build projects where Contractor designs.
• Key clauses: Contractor's design obligations, performance guarantees.
• Risks related to design and fitness for purpose.
• Testing and commissioning procedures.
• Specific considerations for power plant projects.

Module 9: FIDIC Silver Book (EPC/Turnkey Projects)

• Application for turnkey projects with minimal Employer involvement.
• High risk allocation to the Contractor.
• Importance of clear scope definition and performance specifications.
• Limited role of the Engineer.
• Suitable for complex power projects with high contractor expertise.

Module 10: Contract Administration and Management

• Role and authority of the Contract Manager/Administrator.
• Record keeping, documentation, and correspondence management.
• Progress monitoring and reporting.
• Managing meetings (progress, technical, risk).
• Importance of early warning and proactive management.

Module 11: Managing Claims and Variations

• Understanding what constitutes a claim under FIDIC.
• Procedures for submitting and assessing claims (time and money).
• Change orders and variations management.
• Extension of Time (EoT) claims and force majeure events.
• Consequential damages and liquidated damages.

Module 12: Dispute Avoidance and Resolution under FIDIC

• Importance of dispute avoidance at project level.
• Role of the Engineer in dispute resolution.
• Dispute Adjudication/Avoidance Boards (DAABs): formation, functions, and decisions.
• Amicable settlement, mediation, and conciliation.
• Arbitration and litigation as final resorts.

Module 13: Financial Management and Payment under Contracts

• Payment terms and conditions (advance payments, interim payments, final payments).
• Retention money and performance bonds.
• Managing payment certificates and invoicing.
• Financial close-out procedures.
• Currency fluctuations and hedging strategies.

Module 14: Project Close-out and Post-Completion Management

• Taking Over Certificates and Performance Certificates.
• Final account settlement and release of retentions.
• Handover of documentation (as-builts, O&M manuals).
• Warranty period management.
• Lessons learned and post-completion reviews.

Module 15: Case Studies and Practical Application in Power Projects

• Analysis of real-world power project tendering and contract challenges.
• Group exercises on drafting specific contract clauses or responding to claims.
• Interactive discussions on common FIDIC pitfalls and best practices.
• Role-playing scenarios for negotiation and dispute resolution.
• Adapting contractual strategies to specific power generation types (e.g., thermal, hydro, wind, solar).

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.