How to estimate what is needed for a project
13-January-2025
How to get the green light for a project
13-January-2025
17 – FINANCING AND CONTRACTS
Ensuring there is enough money available, and relationships are understood is the essence of setting up the financing and contracts for a project.
Every project needs to be paid for in some way. There are many different sources of funding, and the nature of the project will often determine what is going to be the best one. But many types of finance come with significant strings attached.
Contracts define the roles and obligations of the parties in a project. Accordingly on all but the simplest projects this will extend well beyond the relationship between a project client and the project supplier.
In recent years a great variety of contract types have been devised to meet the requirements from increasingly complex projects. Whatever the set-up, a contract needs to be actively managed throughout the whole course of the project.
Ways to finance a project
17.1 – Financing the project
Learn about the myriad of different ways a project could possibly be funded. The eventual choice will depend on a number of factors which we explain.
Sometimes the financing is complex, as it was for the Shard skyscraper in London. The video titles view of the City of London was taken from its viewing deck.
Sometimes it depends on a great deal of cajoling and persuading, as in the case of Ernest Shackleton’s 1914 Trans-Antarctic Expedition.
You will learn:
- What are the sources of funding for a project.
- How a corporate budget can finance a project.
- How borrowing can finance a project.
- What is project financing.
- How bonds can finance a project.
- How venture capital can finance a project.
- How targeted funds can finance a project.
- How angels can finance a project.
- How crowdfunding can finance a project.
- How grants can finance a project.
- How charity and philanthropy can finance a project.
- How public spending can finance a project.
- How foreign aid can finance a project.
- How sovereign investment can finance a project.
- How complex financing can finance a project.
Contracts are very important to projects
17.2 – Contracts
Projects depend on people agreeing to do things, and those agreements are often contracts. Learn exactly what a contract is, and what it is meant to do.
You will learn:
- What is a contract.
- Why contracts are essential to a project.
- How many contracts a project can have.
- Why a project can have a network of contracts.
- What a contract does.
- How a project contract deals with risk.
- What is the basis of a good contract.
- How to develop a project contract.
How to set up fair relationships in and around the project
17.3 – Project contracts
Learn about the different types of contract which might be used in projects. Understand what considerations lead to the choice of a particular type of contract.
You will learn:
- Who bears the risk in a project contract.
- What different types of project contract are there.
- What is a fixed price contract.
- What is a cost-plus contract.
- What is a traditional project structure.
- What new forms of contract are there.
- What is a through life contract.
- What is a BOOT (build own operate transfer) contract.
- What is a DBMO (design, build, maintain, operate) contract.
- What is a public private partnership.
- What are the pros and cons of different types of project contract.
Project contracts need managing
17.4 – Managing the contract
See how to make sure that the contract reflects the project as it goes along, and what mechanisms can be used if problems and disputes arise.
You will learn:
- How a project can start without a contract.
- Why a project could start without a contract.
- How to start a project without a contract.
- How to manage a project contract.
- How a contract can evolve as the project evolves.
- How to handle serious claims and disputes in a project.
- How to avoid litigation in a project contract.
- How to conduct arbitration in a project.
- How to conduct mediation in a project.