Contracting is a tough game.
The industry cycles through periods of feast and famine on a regular basis with forward workload as difficult to predict as the winner of the first race at Randwick. One minute you don’t have enough staff and the next you are faced with the difficult decision of deciding who to let go.
It makes sense to manage some of these fluctuations by employing specialist staff for particular projects on a contract basis. For a relatively small premium, competent contractors can generally be found for most site based roles and they can be turned off at short notice without the need to pay an expensive severance package.
It’s a different proposition when it comes to the managers that run your business. These people need to have an understanding of your business. They need to know your corporate systems and procedures and preferably be aligned with the company’s culture and values.
That’s why historically most contractors retain a core management team, even if that team is not always fully utilised.
This management team will usually include a Commercial Manager who, amongst other things, will be responsible for contract reviews and negotiation (both up and down the procurement chain), assisting project teams to prepare and negotiate claims and variations and possibly also the management of risk, insurance and project controls.
These are all vital tasks for maintaining the profitability of your business and so you want to employ the best Commercial Manager you can afford but depending on what stage you are at in the market cycle there may not be enough work to keep them busy and they can become a burden on the overhead.
You may consider reducing the burden by employing a less experienced commercial manager and run the risk that this results in less optimal contract terms being negotiated and variation / claims not being maximised.
When you end up in an argument over a poorly documented claim you could also engage a specialist external consultant to assist but what you saved in staff cost will quickly be eaten up by large fees with no guarantee of outcome.
So, what’s the answer?
Say hello to the Virtual Commercial Manager (VCM).
Why employ an average commercial manager who takes up a valuable space in the car park and large slice of your overhead just so that he can annoy your clients with poorly substantiated claims when, for a small monthly retainer, you can have access to a highly qualified, experienced and house trained Virtual Commercial Manager?
They are yours to assist with general commercial matters and provide commercial governance on pre-agreed days every month but will be on call 24/7 to provide advice as and when you need it by accessing required information remotely. Over time, your VCM will develop an in depth understanding of your business needs and culture such that advice and assistance can be provided with minimal briefing and in a language that will not sound like Steven Hawking explaining the big bang theory.
If there is a specific task you require assistance with that cannot be completed on a regular visit, they will efficiently undertake it for a pre-agreed hourly fee or for a lump sum agreed in advance so you are always in control of your budget. Minor issues or ‘sounding board’ moments can be handled over the phone.
What can a VCM do for you?
Your VCM can:
- Provide project / business health checks and diagnose problems on a consistent basis via an easy to understand performance dashboard.
- Review your contracts and identify key risk areas or items for further development.
- Assist with the identification of potential partners for risk mitigation and/or capability enhancement.
- Suggest and implement ways to make you money
- Improve your tender success rate
- Improve your cash flow.
- Help you to amicably resolve disputes
- Help you prepare and present robust claims.
They can even help you to make friends and influence people !
A Virtual Commercial Manager isn’t just a flash name for a traditional consultant. Yes, they can undertake traditional consulting tasks but you will not be paying for them to get up to speed or contributing to a partner’s pension fund and you will have access to them 24/7 without worrying about being billed for the phone call.
Other Virtual Specialists
This service is brought to you in partnership with Bellwether Contractors and together we can provide you with other virtual construction management services such as:
- Engineers
- estimators,
- quantity surveyors,
- planners (including specialist forensic planners),
- construction/ constructability experts
Our specialists have experience in all forms of contract working either for clients, contractors or subcontractors and suppliers.
You no longer have to put up with mediocrity in your business. Stretch your budget and engage industry leading professionals by using them only as you need them, with the confidence that they will be available when required or at the end of a phone to provide immediate advice.
Contact us now for further information
