Mastering Risk Allocation & Subcontract Management in Construction Projects

18-19 Dec, 2025, Wyndham Grand Bangsar Kuala Lumpur

IPA Training is Registered with

Venue Details

Wyndham Grand Bangsar Kuala Lumpur
NO 1, JALAN PANTAI JAYA, TOWER 3, 59200 KUALA LUMPUR, MALAYSIA,

https://wyndhamgrand bangsarkl.com.my/


Phone : 03-2298 1888

Contact us

FOR COURSE DETAILS

Juliany,

Office: 03 2283 6109

Mobile: +60 122281247

juliany@ipa.com.my

Phoebe,

Office: 03 2283 6100

Mobile: +60 193637822

phoebe@ipa.com.my

Bee Teng,

Office: 03 2282 6112

Mobile: +60 172566121

beeteng@ipa.com.my

FOR CUSTOMISED IN-HOUSE TRAINING

ADDRESS

A-28-5, 28th Floor, Menara UOA Bangsar,
No.5, Jalan Bangsar Utama 1,
59000 Kuala Lumpur

FOCUSING ON

PART A: RISK MANAGEMENT IN CONSTRUCTION
PROJECTS

Session 1: Risk Fundamentals in Construction
Session 2: Anatomy of Project Failure & Lessons Learned
Session 3: Risk Identification, Assessment & Tools
Session 4: Risk Mitigation, Control & Best Practices

PART B: SUBCONTRACT MANAGEMENT IN CONSTRUCTION PROJECTS
Session 1: Principles & Legal Framework of Subcontracting
Session 2: Drafting & Negotiating Subcontracts
Session 3: Subcontract Administration & Performance Management
Session 4: Disputes, Claims & Commercial Awareness
PART A: RISK MANAGEMENT IN CONSTRUCTION PROJECTS
Construction is a high-risk business where a single overlooked risk can transform expected profit into severe losses.
• Learn practical frameworks for identifying, assessing, and mitigating risks.
• Gain region-specific insights from Malaysian and ASEAN mega projects.
• Understand how risk allocation under contracts affects project delivery.
• Equip yourself with tools to anticipate disputes and avoid costly claims.
• Position yourself to be a trusted advisor in risk- sensitive projects.
PART B: SUBCONTRACT MANAGEMENT IN CONSTRUCTION PROJECTS
Subcontractors execute nearly 80–90% of construction work packages, making subcontract management central to project success. Poorly managed subcontracts can lead to disputes, cash flow crises, and project delays.
This course will help you:
• Gain clarity on legal principles related to subcontracting provisions.
• Learn how to negotiate subcontract clauses to balance risks fairly.
• Improve your skills in administering subcontractors through documentation, monitoring, and payment systems.
• Enhance your role as a commercially
aware professional in today’s complex contracting environment.
AFTER ATTENDING THIS COURSE YOU WILL RETURN TO YOUR JOB…
  1. Understanding the inherent risks in construction projects and why they cannot be eliminated but must be managed.
  2. Applying structured tools and frameworks (risk registers, probability–impact analysis, mitigation strategies).
  3. Learning from global and ASEAN case studies of both project failures and success stories.
  4. Developing a proactive mindset for turning risks into opportunities.
  5. Understanding the principles and legal framework of subcontracting in construction projects.
  6. Identifying and negotiating key subcontract clauses including back-to-back obligations, indemnity, conditional payment, and set-off.
  7. Applying best practices in subcontract administration covering scope, quality, safety, cash flow, and documentation.
  8. Recognizing typical subcontract disputes and evaluating effective resolution mechanisms including arbitration, adjudication, and negotiation.
  9. Building commercial awareness to avoiding pitfalls and strengthening subcontractor–main contractor relationships.
WHO SHOULD ATTEND
This course will benefit professionals across the construction and infrastructure sector, including:
• Employers / Owners and their Representatives
• Government Ministries & Project Agencies
• Developers & Project Funding Agencies
• Contractors and Subcontractors
• Architects, Engineers, and Quantity Surveyors
• Project Managers, Commercial Managers & Risk Officers
METHODOLOGY
  • Interactive Lectures
  • Malaysia Specific Case Studies
  • Quiz
  • Group Exercises
  • Role Play Exercises
  • Interactive Format with ample time for Q & A
DAY 1
 

DAY 1: RISK MANAGEMENT IN CONSTRUCTION PROJECTS


9:00

SESSION 1: RISK FUNDAMENTALS IN CONSTRUCTION

  • Nature of risk in construction: unavoidable but manageable
  • Types of risks (design, construction, coordination, force majeure)
  • Essential features of construction projects and why they are inherently risky
  • Lessons from global studies and Indian/ ASEAN context
10.45

SESSION 2: ANATOMY OF PROJECT FAILURE & LESSONS LEARNED

  • Why mega projects fail: optimism bias, poor leadership, inadequate planning
  • Case study deep dive: The French Panama Canal project (technical, financial,
    environmental, and leadership failures)
  • Group exercise: Identify at least 5 risk management takeaways from the Panama case
1:00 Lunch
2:00

SESSION 3: RISK IDENTIFICATION,
ASSESSMENT & TOOLS

  • Six simple questions of risk process (David Hillson framework)
  • Probability × Impact = Risk rating model
  • Risk appetite, tolerance, threshold
  • Risk register (structure, live updating, visual risk matrix)
  • Exercise: Participants draft a mini risk
    register for a sample project

Case Study: Petronas Twin Towers, Kuala
Lumpur (Malaysia)

3:45

SESSION 4: RISK MITIGATION, CONTROL & BEST PRACTICES

  • Risk responses: avoidance, transfer,
    retention, sharing
  • Role of subcontracting and insurance in risk transfer
  • Practical tips (Top 10 best practices)
  • International standards and guidelines (PMBOK, BS6079, PRAM, RAMP, DoD Guide)
  • Use of new technologies (BIM, drones, prefabrication) for risk reduction
  • Interactive debate: “Is risk transfer always better than risk retention?”
5:00 End of Day 1
DAY 2
 

DAY 2: SUBCONTRACT MANAGEMENT IN CONSTRUCTION PROJECTS

9:00

SESSION 1: PRINCIPLES & LEGAL FRAMEWORK OF SUBCONTRACTING

  • Role of subcontractors in construction projects
  • Domestic vs nominated vs named subcontractors
  • Privity of contract & FIDIC Red Book Clause 4.4
  • Why subcontracting is critical in modern projects
10.45

SESSION 2: DRAFTING & NEGOTIATING SUBCONTRACTS

  • Key clauses: back-to-back, indemnity, conditional payment, set-off
  • Risk transfer through subcontracting
  • UAE and common law perspectives on conditional payment clauses
  • Negotiation strategies for fair subcontract terms
1:00 Lunch
2:00

SESSION 3: SUBCONTRACT ADMINISTRATION & PERFORMANCE MANAGEMENT

  • Managing scope, obligations, and supervision
  • Documentation: notices, RFIs, variations, and claims
  • Health & Safety, quality control, and certification procedures
  • Managing labour-only vs turnkey subcontractors
3:45

SESSION 4: DISPUTES, CLAIMS & COMMERCIAL AWARENESS

  • Variations vs claims (FIDIC Clauses 13 & 20)
  • Delay and disruption issues at subcontract level
  • Claim preparation, persuasive writing, and negotiation
  • Dispute resolution: arbitration, mediation, litigation
  • Recommendations for effective subcontract management
5:00 End of Course