Contract Finance         

By the end of this course you will be able to:

.1- Define contract finance

.2- Identify types and feature of contracts

.3- Explain the major risks facing the contractors and how they can plan for mitigation

.4- Describe phases of the constructions contracts

.5- Explain the different products and lines of credit offered by banks to satisfy contractors’ needs

Course Outline:

.1- Overview and Principles of Contract Financing

.1-1 Economic rationale for long-term contracts

.1-2 Contract finance definition

.1-3 Characteristics of contract finance debt

.1-4 Advantages and disadvantages of contract finance

.1-5 Contract finance process

.2- Types and Feature of Contracts

.2-1 Supply contracts

.2-2 Services contracts

.2-3 Constructions contracts

.2-4 Analysis in contract finance

.2-5 Parties involved in contract finance and their roles

.3- Major Risks and How to Mitigate It

.3-1 Economy impact on contracting business

.3-2 Cyclicality of business

.3-3 Demand risks

.3-4 Source of repayment /awarding companies (authorities)

.3-5 Pricing risk

.3-6 Performance risk

.3-7 Supply risk

.4- Phases of the Constructions Contracts

.4-1 Assessing the tenders

.4-2 Cash flow creation

.4-3 Pricing the tender

.4-4 Biding stage

.4-5 Contractual terms/conditions/ timing

.4-6 Mobilization

.4-7 Supply chain management

.4-8 Monitoring the performance

.4-9 Progress payments

.4-10 Cash flow management

.4-11 Dealing with obstacles/ crises management

.4-12 Preliminary handing over

.4-13 Final handing over

.4-14 Warranty period

.5- Structuring the Bank’s Lines of Credit to Support Contracts’ Finance

.5-1 Bid bond

.5-2 Performance bond

.5-3 Advance payment guarantee

.5-4 Retention guarantee

.5-5 Letters of credit

.5-6 Progress payments financing

.5-7 Overdrafts

Target Audience:

.All financiers involved in Contract finance, investment analysis and syndicated lending

.Government and executives involved in sponsoring/assessing contract finance deals

.Commercial and Investment Bankers

.Corporate Officers in Development Banks

Prerequisites:

This course entitles you to attend:

Upon successful completion of this course, participants will obtain:

.Certificate of Attendance