What is commercial management and what does a commercial manager do?
Commercial management is the non-technical business discipline in a company or organization. It deals with the administration of revenue and expenses for financial return.
Commercial management in an organization is applied at policy levels. Commercial policies relate to the rules that define how the business will be conducted as well as standard terms under which external relationships will be conducted. Most of these policies are reflected in the terms of any contract in which the organization engages. At a transactional level, commercial management is applied through the oversight of trading relationships to ensure their compliance with business goals or policies and to understand or manage the financial and risk implications of any variations.
Most experienced Commercial Managers will have these skills:
- Reporting to Management
- Forecasting and Budget
- Supervision and Leading
- Commercial Issues
- Pricing and Bidding
- Costing of Project
- Correspondence relating to Project
- Strategy for Project
- Project Implementation and Planning
- Meetings with Project Managers
- Project Strategy
- Team Leadership skills
- Management of Supply Chain
- Responsibility for effective flow of information within a team
- Writing Proposals and SLA’s for specifications, support contracts, and implementations
Contract Management of on going Projects from signing to closure, including:
- Managing of Variations in Contracts
- Applications for Payment
- Managing Sub-Contractors
- Participation in Dispute Settlements and Contract Claims
- Negating risks by Involvement in Contract Negotiation & Contract Signing with clients
- Awarding contracts and managing the tendering process, co-ordinating with contractors for all commercial negotiations
- Interpreting contractual obligations & rights and evaluation of financial or technical problems for reporting to management
- Applying innovative methods that deliver bottom line savings
- Contract Administration for Main and Sub Contractors
- Verifying Sub-Contractors Payments