Driving efficiency and long-term value over short-term cost saving is at the heart of all of Tier One’s services. With our procedure development service we are able to develop bespoke commercial management procedures based upon tried and tested standards to work in harmony with your existing business and which allow your business to achieve its aims in a non-adversarial, collaborative manner.
We are also keen advocates of lean construction and always hold dear the sustainable principle of minimising waste and the efficiencies which will improve value at all stages of project development, delivery and business management.
Without a set of standards and procedures by which to conduct commercial operations, such as change management and valuation, there will likely be untapped income streams which are slipping away unnoticed. By establishing a standards and guidance with dedicated staff members to implement them the financial risk to your business will be greatly reduced and in many cases margin on turnover will increase by a few percent.
Our procedure development service traditionally follows three distinct stages:
- reporting; and
- management and implementation.
Through a period of consultation with key business heads and operations staff we aim to develop an understanding of what drives your business and the field in which it operates. We are able to establish any commercial operations your business already undertakes and identify gaps in your business’ commercial management operations and areas which may require improvement. We will examine your business requirements in line with industry standards and what we know works.
After the consultation process we will generate a detailed report of recommendations to seize commercial control of your business, the report will streamline any existing commercial processes and identify areas which require structure and/or development. The findings of the report will be presented to you in a manner that will guide you through the recommendations and ensure your full understanding of what is required, the potential repercussions of remaining unchanged against the benefits of adopting new practices and guidance on how to implement the recommendations.
Management and Implementation
Following our report we will offer a continued service to see through our recommendations. This service can cover anything from developing and rolling out a set of written standards to reinforce and formalise current procedure, to the selection of cost and value management and reporting software packages and ensuring that your business has the right team in place through the recruitment of individuals to manage your new processes, creating development plans and structures for your new commercial department.
The outcome of our comprehensive consultancy service will be a well-structured department, which interfaces effectively with delivery to monitor change and ensure that payment applications are maximised. The team will operate in cycles to ensure healthy cash flow, generating useful reports to Senior Management which demonstrate actual and forecast cost against out-turn, raising any issues of profitability early on and allowing Management to effectively plan the development and future of the business.
Some of the core commercial management procedures Tier One can develop for your business include:
- Change management;
- contract administration and delivery management; and
- commercial project management and reporting.
In competitive contracting margins are often small giving little opportunity for profit. One thing which is inevitable in project delivery is change and with that comes opportunity. Whether you consider your business to have a solid change management practice or not, you may still either be undervaluing change or worse still, be effectively completing additional works and expending costs for no return in value. Tier One Commercial Management will ensure that you have rigid systems in place allowing you to claim your full contractual entitlement for works completed and variations.
The proper administration of contracts is often one of the first aspects of commercial management to fall by the wayside. One example seen as peripheral to the completion of a project is correspondence and the serving of notices which, when not raised correctly and timely may open the doors for loss of entitlement later on in the delivery of a project.
Commercial Project Management and Reporting
The proper management of a project’s finances can enable a business to better control the present and prepare for the future and it is a proven method of improving profit margins without having to increase turnover. Through proper forecasting, cost monitoring and value reporting evasive action can be taken before projects suffer great losses and knowing where all of your projects stand at any time through their programme will help you better plan future income, expenditure and ultimately the growth of your business.