Financial Risk Management - How to Get Paid
Presenters: Ronald Leaders, Buckley & Leaders
Steven Finke, Tetra Tech/KCM, Inc.
Description: Effective project financial risk management focuses on prompt payment of invoiced amounts and reduction of work performed without contractual authority. The effects of poor scope definition and poor contract change management usually arise as lack of payment for work performed. We will discuss contract clauses, project management practices and guide documents that will improve financial results from technical project managers and teams. Use of lien rights, suspension of work, copyright of work product, conditional delivery of work product and expedited payment collection rights will also be discussed.
1. Design and implement more effective payment recovery practices by technical project managers through the use of uniform practices and documents that will overcome project team reluctance to address payment issues with the client.
2. Learn techniques to avoid performance of work beyond contractual authorizations, and how to obtain pre-authorizations or expedited authorizations from the client as project conditions change.
3. Implement a systems approach to financial risk management through structured processes, guide documents and effective use of specialized skills available within your organization.
Ronald Leaders is an engineer and attorney, and a principal in the Washington State law firm of Buckley & Leaders. For more than 20 years, Mr. Leaders has provided general counsel, risk management and other legal advisory services to engineering and scientific professional service firms, owners and contractors. He emphasizes guidance on contract negotiations and management to design professionals, and is a frequent speaker on methods to negotiate and achieve more favorable contract results for A/Es. He is a certified corporate trainer of negotiations from the Harvard Project on Negotiation.
Steven Finke is Controller for Tetra Tech/KCM in Seattle, Washington, and is responsible for its financial and accounting operations. Steve has over 20 years of experience in the accounting profession, with more than 15 years working with design professional firms. He is responsible for reviewing and assisting in the negotiation of payment clauses, monitoring project cost control and contract change management, and managing collections of invoiced amounts.