Politecnico di Milano - Master School F.lli Pesenti

Master in Project and Contract Management in Construction Works

Didactic Modules

Fundamentals of management engineering:

The unit aims to bring the student closer to the fundamentals of management engineering. In particular, the focus will be on external accounting - balance sheet with related documents, elementary accounting operations, reading the balance sheet and indices - on internal accounting - management control and main techniques, short-term balance, and break-even analysis. Attention is also paid to the valuation of investments, DCF, and non-DCF valuation methods; to supply chain planning - outbound logistics, production, supplier evaluation and planning, and control cycle; finally on project management - organization by projects, reticular control techniques, planning, and re-planning.

NEBOSH International General Certificate course:

The unit aims to provide technical skills of risk assessment, identification of preventive measures, planning, design of procedures to prevent or reduce risks during the execution of works, identification of critical phases, ability to coordinate activities to avoid dangerous interference, emergency management (fire - accident - earthquake - attacks - natural disasters in general). The unit provides all the information needed to take and successfully pass the exam to achieve the NEBOSH certificate, which is the British Standard for safety in and arrangement of construction sites.

An introduction to value averaging:

Every person / professional should plan her / his financial situation as a company does: the turnover corresponds to the salary of a person, the company costs correspond to the living costs of the person and her / his family, the fcf (free cash flow) of a company corresponds to the cash that a person manages to save every month. Just as a company must invest its fcf to grow, so also a person needs to know how to invest her / his savings in order to generate a financially solid and secure situation in the long term. A value averaging investment strategy is useful to achieve such a goal.

Project Management Certification PMI (CAPM® e PMP®):

The unit aims to prepare students to obtain the prestigious certifications issued by PMI®, helping to understand the fundamental approaches, methods, and techniques of the PMBOK® Guide. The course is structured in modules and includes classroom days and exercises for the application of the techniques. The course is valid as compulsory training for eligibility in the CAPM® and PMP® exams.

IPMA® International Project Management Certification (Level D, Level C, Level B, Level A):

The unit aims to train students according to the IPMA (International Project Management Association) skills model called ICB® (Individual Competence Baseline).

In addition to the technical and methodological skills of the PM, the ICB also covers those defined as "behavioral" and "contextual".

The IPMA model provides 15 behavioral skills that the PM must develop as well as those of a technical nature. Leadership results in orientation, openness, negotiation, reliability, conflict and crisis management are some of the behavioral skills that are treated within this teaching unit.

The unit provides also the discussion of elements defined as "contextual" that complete the skills of a PM (finance, legal, hsse, technology, business, permanent organization, etc.).

The course offers the opportunity to access the Level D IPMA certification which does not require working experience prerequisites, or to higher levels, if the participant meets the working experience prerequisites.

Lean Six Sigma Green Belt Project Leader:

The Lean organizational model and the Six Sigma problem-solving methodology represent two important tools for all those companies that wish to improve their performance, thus introducing a continuous improvement program for their workforce. The Green Belt Project Leader training allows course participants to conduct improvement projects within companies and at the same time to develop their own project management skills. Lean Six Sigma projects improve business processes and offer the opportunity to acquire cross-functional skills essential for holding managerial roles. It is no coincidence that General Electric, one of the companies that have helped to develop the Six Sigma methodology in the first place, used this training path to make its managers grow and improve. The management and data analysis skills acquired through a Green Belt Project Leader course are the key to achieving high levels of competitiveness and, together with digitalization, provide the main founding elements of Industry 4.0.

Real estate valuation and valorization:

The unit is divided into two main parts.

The first one, dealing with real estate valuation, is made up of four modules organized into two parts:

• framework of the problem, from a technical, economic and managerial point of view;
• case studies, as widely documented and presented by representatives of well-known companies in the real estate sector.

The second part of the course deals with the tools and methods for real estate valorization. This part aims at presenting the process of real estate valorization, illustrating the methodologies and the technical, economic, and managerial means that might lead to the best practices and results.

The unit is sponsored by the Royal Institution of Chartered Surveyors (RICS).

The unit will be held by professors of the Politecnico di Milano, by some experts in the real estate sector, and will benefit from the contribution of leading representatives of some of the most important companies and/or organizations operating in the real estate sector (CBRE and Generali Real Estate, Beni Stabili Siiq, Generali Real Summer and Royal Value Sgr.)

How to become a certified project manager:

The new procurement code, the ANAC Guidelines No. 1, No. 2, and No. 3, and the DPCM scheme for the definition of the technical and organizational requirements for registration in the list of qualified contracting stations (art.38, paragraph 2 of Legislative Decree 50 of 2016) of February 2018, actually emphasizes the importance of project management activities both for ORs and for professionals involved in civil and infrastructural works and/or engineering and architectural services.

And that is why there is the possibility of being certified as project managers in accordance with Law 4/2013 and the UNI 11648:2016 Standard and is registered in the appropriate Accredia list.

But how can you become a certified project manager according to the law and the aforementioned standards? Admittedly, the process for potential candidates is often confusing; what are the steps to be taken in order to achieve this certification, what is the optimal path to follow, and which prospects can a project management certification offer?

This didactic module aims at providing all the necessary information for adequate participation in the exam for the so-called "Third-party certification" of project management in compliance with Law 4/2013 and UNI 11648:2016. This exam is to be carried out by a Body of Certification officially recognized and accredited by Accredia. Certified PMs will be registered in the appropriate Accredia register, as required by law.

This unit first introduces the students to the law and regulations. The teacher will explain with adequate documentation the reasons why it is convenient to become a certified project manager and to be included in the appropriate list of Accredia, both for the ORs, for professionals, for engineering companies, and companies in general. In fact, in all those contracts managed with the criteria of the most economically advantageous offer, both for construction works and for architectural/engineering services, the scores assigned to the organizational aspects in any bid tend to be higher if and when certified project manager figures are involved.

Finally, for the purpose of adequate alignment with a course about project management in the field of civil and infrastructural works, the teacher will discuss case studies in which the teacher himself has been a project manager or consultant for project management activities. These case studies are meant to give the students practical knowledge that might turn out to be very useful during the exam to become a certified project manager.

Construction Contract Civil Law:

In-depth analysis of the Construction Contract (“Appalto”) for private works. For comparative reasons, reference will be made to the public works regulations under Italian Law, if needed.

The students will learn:

• The construction contract as a typical contract in the Italian Civil Code: definitions and contents
• Requirements. Validity. The subjects of the construction contract
• Legal status. Comparison with other contracts
• Compensation and price adjustments in construction contracts
• Contract performance: materials, subcontract, prerogatives of the parties
• Contract performance: surveillance, variations, completion
• Contract performance: the impossibility of performance, defects, and defects liability
• Construction contract: termination and other contract events
• Cooperation among businesses: JVA and related agreements
• Project contract as a tool to manage risk
• World legal systems and general contract formation rules
• Project contract: essential clauses
• Project contract: liability clauses
• Project contract: extra-contractual liability
• Project contract: defects and warranties
• Project contract: disruptions
• Project contract: dispute resolution

Types of projects and works:

In this unit the students will learn:

• Project definitions and types of contracts: E.P.C., Service, Lump Sum, Reimbursable, Semi-Reimbursable
• Main elements of the contract & contractual documentation (general conditions, special conditions)
• Overview of the main guarantees and liabilities
• Contractual structures and kind of partnership: JV, Consortium, Nominated Sub Contractor
• Analysis of contractual clauses regarding the different types of contracts analyzed
• An introduction to the principles of claim management
• Case studies

The main stakeholders:

The students will have the chance to listen to and to meet with:

• Nicola Di Pietro, Department Procurement Adviser, Projects Directorate, European Investment Bank
• Marco Padovan, Founder, Studio Legale Padovan
• Simone Arena, Foreign Legal Department, Impresa Pizzarotti & C.S.p.A.
• Vinicio Fasciani, General Counsel, Salini-Impregilo S.p.A.
• Gianluca Buoro, General Counsel, Danieli Automation S.p.A.
• Angelo Bianchi, PMP, Independent Consultant, Public Procurement Specialist
• Franco Lusuriello, Managing Director of Design & Construction, Building Energy S.p.A.
• Francesco Fava, Technical Director, Conteco Check Srl
• Sauro Mostarda, Head of Operations, Solar Ventures Slr

Introduction to Contract Management for FIDIC contracts (Red, Pink, Yellow, and Silver):

This course will describe in detail all aspects of the FIDIC Contracts which are relevant for contract management. It will be a “hands-on approach” in real cases with professionals of international experience. During this course, certain aspects of risk management will be illustrated.

The students will learn:

• Generalities for all FIDIC models of conditions of the contract.
• Focus on FIDIC model contracts: the Rainbow suite, 1999 & 2017 editions, contract conditions, choice of the model.
• Procurement rules, tender preparation, pre-qualification, post-qualification.
• The parties and the engineer, roles, and responsibilities.
• FIDIC clauses 1, 2, 3: definitions, the employer, the engineer.
• FIDIC clause 4: the contractor.
• FIDIC clause 5: Red Book vs. Yellow and Silver Book.
• FIDIC clause 6: staff and labor.
• FIDIC clause 7: plant material and workmanship.
• FIDIC clause 8: commencement, delays, and suspensions. The program.
• FIDIC clause 10: employer's taking over.
• FIDIC clause 11: defects liability.

Introduction to Claim Management for FIDIC contracts (Red, Pink, Yellow, and Silver):

This unit will describe in detail all the aspects of FIDIC contracts that are relevant for claim management. It will be a "hands-on approach" with real cases shown and commented on by professionals of international experience.

The students will learn:

• Procurement considerations
• Contract selection and risk allocation
• Engineer duties in relation to claims FIDIC 1999 & FIDIC 2017
• Notices in relation to claims FIDIC 1999 & FIDIC 2017
• Time bar in relation to claims FIDIC 1999 & FIDIC 2017
• Provisions in Clauses 1 (General) and 2 (The Employer) that are frequently involved in claims
• Contentious issues in relation to Engineer's instructions and determinations
• Provisions in Clause 4 (The Contractor) that are frequently involved in claims
• Commencement and Time for Completion – Sub-Clauses 8.1, 8.2 and 8.3
• Rates of Progress and Delay Damages - Sub-Clauses 8.6 and 8.7
• Employer’s Taking Over the Works - Clauses 9, 10, 11, and 12 (DB and EPC), Variations: Clause 13
• The payment mechanism under FIDIC contracts and its management, rights, and obligations of the parties under Clause 14
• Employer’s Termination of the Contract – Generalities on Clause 15
• Suspension and Termination by Contractor – Generalities on Clause 16
• Generalities on Clauses 17 (Risk and responsibilities) and 18 (Insurance)
• Force Majeure – Generalities on Clause 19
• Claim Disputes and Arbitration, Fidic MDB clause 20, Fidic 2017 Clauses 20 & 21
• Dispute Boards, History, Three Party Agreement, DAB General Conditions
• DAB Procedural Rules, DAB additional Procedures

Introduction to Delay Analysis:

This unit will take the students through the complex matter of delay analysis in international projects, the various methodologies, and the forensic use of delay analysis.

The students will learn:

• Types of the excusable delay
• Types of non-excusable delay
• Productivity
• Float ownership
• Importance of the baselines and updates
• Non-CPM schedules, including: Just in Time, Lean Construction, LoB, and Gantt
• General FSA concepts, adjudicator perspective
• Planning and scheduling basics
• General FSA concepts, practice in Italy
• FSA methods overview: basic considerations in all FSA methods
• As-Planned vs As-Built: how does it work
• CPA: how does it work
• TIA: how does it work
• CAB: how does it work
• Concurrent Delay and Special Issues
• Why do different methods yield different results

Determination of the Quantum:

This unit aims at detailing the various elements of cost which must be taken into account when determining the quantum in a claim.

The students will learn:

• Introduction to tendering
• Tender priming with reference to claim evaluation
• Claim & VO management
• Total cost claims
• Modified total cost claims
• Productivity analysis
• Composition of overheads costs
• Case study of overheads costs

From claim to dispute, dispute boards, arbitration:

The students will be presented with the major topics on administered arbitrations and on ad hoc arbitrations. As in the construction industry, the most frequent is the ICC one, the focus will be placed on it without forgetting the ICSID arbitration and the UNCITRAL rules.

The students will learn:

• Management of claims. Analysis of employer and contractor’s risk events that give rise to claims. Causes and effects.
• The dispute resolution mechanism (mainly FIDIC forms): Engineer’s determination, DAB, amicable settlement, arbitration.
• Dispute boards: origin and development, dispute avoidance and dispute resolution roles, practice, and procedure.
• The FIDIC context: from engineer’s decisions to dispute board. The reasons why dispute boards replaced engineers as dispute resolvers.
• The Italian experience with dispute boards. Mechanisms currently in place or under consideration to resolve construction disputes.
• The binding nature of dispute board decisions.
• Overview of the UK adjudication under the Housing Grants, Construction and Regeneration Act 1996.
• Treatment of adjudicators’ decisions by UK courts for enforcement purposes.
• Status of dispute boards’ decisions in international construction contracts under FIDIC conditions.
• Cases on the enforcement of the dispute board’s decisions, from the arbitration case that paved the way for the current enforcement trend.
• Principles of international arbitration (commercial vs investor/state arbitration, substantive and procedural law, New York convention, and the model law (UNCITRAL)).
• The arbitration context: jurisdictional, procedural, and substantive issues in construction disputes. The arbitration agreement.
• Multi-tiered arbitration clauses. Arbitral tribunal and state courts in the conduct of arbitration proceedings.
• Typical procedural issues (briefs, written and oral evidence, document production, hearings, and witness examination).
• Substantive issues: the role of the contract and of the applicable substantive law.

Arbitration Details:

The students will learn:

• The arbitration agreement
  • Do’s and don’ts when drafting arbitration clauses
  • The seat of arbitration
  • The language of the proceedings
  • The applicable substantive law
• Institutional and Ad Hoc arbitration
  • Definitions and features
  • Main differences
  • The arbitration system of the major arbitral institutions
• CAM Rules of Arbitration
  • Main features
• ICC Rules of Arbitration
  • Uncitral Arbitration Rules
  • Main features
• The Arbitral Tribunal (number, appointment, independence and impartiality, role, powers)
• US arbitration
• US arbitration vs. US Court litigation
• Evidence in international arbitration (documentary evidence, witness statements/expert reports, the examination of witnesses and experts)
• The Relationship Between Counsel and Client: A. Counsel and client cooperation in preparing a construction arbitration case, B. Counsel and client cooperation in locating and managing documental evidence.
• Investor-State Arbitration: The definition of protected «investment», the difference between «contractual claims» and «treaty claims», substantive protections afforded by investment laws and treaties, the dispute settlement mechanism, investor-State Arbitration, the ICSID Convention, Investor-State arbitration in the Construction Sector.