What is commercial management?

Skan Bu,

Commercial Management is a branch in construction management that is fill up by person with quantity surveying background after they got tired of reading drawings and doing quantity computation.

Cheers,

Charlie

Hi Charlie,

I thought all members of the team should be aware of commercial management to be successful.

In a contractor set up:

QS have to administer sub contract properly to minimise risk of over payment, keep cash flow healthy, keep sub contractor paid so they do not have financial dificulties.
Administer the external side properly, claim as contract allowed, keep cash flow & procure properly.(QS background)

Site managers/supervisors/gangers: Used materials carefully, ensure quality so no more cost incur for revisit/rectification, control/manage plants & equipments.(Not QS background)

Project Manager plan, organise and ensure all resources are utilised to it maximum benefit, ensure that the plan is carried out properly and take appropriate action when necessary. (Usually Not QS background)

Buyers: using their best in negociating/procure the best benefit with the appropraite cost and ensure all risks have been accounted ef delivery, availability & quality. (Not QS background)

Contarct Manager ensure that each project minimise the risks whether it be safety, resources, prcedures, legal requirements, appropriate staffing etc. (Could be QS back ground)

Director: Play good golf even in the desert so they can win the hole & hustle the client to bet more on the next hole so account can be settled with maximum profit. (Not QS back ground, special breed)

(I guess out there in the middle east, you have lots of golf practice in the desert & only the quality of the piece of carpet used for the stroke play determine whether you suffer permanent sun stroke (hacking away but get no where)or can be commercially manage or not (loose 1 hole win the next 2 and repeat again...ehh eehh!!!...:)... I do not think you are from the QS background, are you??

SO what is Commercial Management?

Hi Scan,

Major task on a commercial management is to manage all commercial issues including cash flow, claims and cost projection. There are other responsibilities which all defend on the company and nature of job.

Regards,
Rodel

Commercial management basically adds more responsibility to the role of quantity surveyor incorporating elements of risk and value management. A Commercial Manager plays a major role in the procurement cycle, too.