Commercial Management

RedIRay believes that ‘commercial’ understanding is required, not only in provider and contracting organisations, but also in the procuring organisation and throughout the supply chain – the wider delivery team.  This is not achieved purely by employing technically qualified people, but rather by inculcating a sound understanding of key commercial issues in each project team and throughout the wider team.  We help both procurers and providers create the culture required for commercial understanding to thrive, bringing with it certainty of cost and delivery for both parties.      

We have learnt that risks allowed for at tender stage, those occurring during the contract, and other changes or ‘compensation events’ need to be quickly identified assessed and managed jointly.  To achieve this all parties need to communicate openly and train staff in all aspects of the contract and views taken at tender stage.  We have embedded our staff in client organisations to: help build new commercially focused organisational structures; manage overall commercial outcomes; facilitate development of required quality processes and procedures; help build relationships; and, deliver the training required to ensure ongoing organisational ownership and development of such a philosophy.

Our team is experienced in the use of all major construction orientated forms of contract and new procurement approaches such as ‘Competitive Dialogue’.  As an organisation, we are expert in the use and development of the NEC contract and are delivering a major training programme on it for TfL. 
    
RedIRay maintains, and helps our clients develop, cost databases that help the projection of accurate project estimates.  Backing this up is an understanding of how the industry builds real costs and the factors that affect pricing.  We have developed pricing models that accurately reflect the type and scale of activities related to a specific project or term contract.  This ensures that our clients can be more certain about the prices they are likely to receive.  It enables sensitivity checking to highlight potential strategic pricing, thus helping ensure ongoing affordability. 

We understand that this approach needs to follow through into the delivery phases and work with clients to develop commercial performance indicators to enable benchmarking and prove continual best value improvements.  Working with TfL we have been able to deliver proven year on year term contract savings and have helped them bring certainty of tender outcome to Major Projects procurement.
 
Although our approach is aimed at reducing contract claims and compensation events via foresight, market engagement and robust governance, there will always be the need to deal with financial claims brought about by unforeseeable change or, on occasions, contractual interpretation.  We are very experienced claim negotiators and have helped clients settle a number of high profile long term disputes.

Commercial management is led for us by our Managing Director, Shaun Reddin. Please contact Shaun to discuss your needs further.