|Management of a business|
Commercial management is the non-technical business disciplines within a company or organization, particularly the administration of revenue and expenses to generate a financial return. Its origins appear to go back to the defence and construction industries in the United Kingdom in the 1590s.
Commercial management within an organization is applied only at policy levels. Commercial policies relate to the rules or practices that define how business will be conducted and the standard terms under which external relationships will be conducted. Many 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.
ICM defines Commercial Management as: "The identification and development of business opportunities and the profitable management of projects and contracts, from inception to completion."
Following are the skills most experienced Commercial Managers have:
- Management Reporting
- Commercial Issues
- Budget & Forecasting
- Leading & Supervision
- Bidding & Pricing
- Project Costing
- Project Correspondence
- Project Strategy Project
- Planning & Implementation
- Meetings with Project Managers
- Project Strategy
- Team Leadership skills
- Supply Chain Management.
- Taking responsibility for the effective flow of information between team members, participants in project activities.
- Writing Proposals and SLA’s for implementations, specifications and support contracts.
- Contract Management of on going Projects from signing to closure, including:
- Management of Contract Variations
- Payment Applications
- Management of Sub-Contractors
- Participation in Contract Claims & Dispute Settlement.
- Involvement in Contract Negotiation & Contract Signing with clients to make sure that risks not involved in the contract.
- Managing tendering process and awarding contracts, coordinating with contractors for commercial negotiations, cost estimates including billing & claims etc.
- Involved in interpreting contractual obligations & rights and evaluation of technical/ financial problems for management reporting.
- Applying innovative control methods that consistently delivering bottom line savings.
- Contract Administration (Main Contracts & Sub-Contracts)
- Verifying Sub-Contractors Payments / Claims as per Contract.
- Monitoring the PO and Payments of Service, out-sourcing & materials.