Mobilising New Contracts
Contract Mobilisation Services
Start as you mean to go on
To start a contract as you mean to go on you must focus on the commercial mobilisation in equal measures to the operational mobilisation. The effective mobilisation of a new contract, framework or commission is essential to the successful execution of the arrangement.
Therefore it is essential that a considered, controlled approach is taken to the mobilisation phase with sufficient experiences resources. Unfortunately this is not always the case and an it will be “alright on the night” approach is sometimes taken instead with respect to the commercial aspects of mobilisation with governance and process put off until another time when things are less frantic.
Pitfalls of the “alright on the night” approach
1. Lack of governance
- Work undertaken without appropriate contracts in place & all the implications that brings.
- Commitments made without appropriate authorisations.
- Sub-optimal commercial deals signed up.
2. Limited controls put in place
- Missed revenue.
- Costs not captured against correct headings.
- Limited controls on expenditure.
- Impossible to manage performance.
3. Risk & Opportunity management not addressed
- Risks materials unexpectedly.
- Missed opportunities.
- Training & education.
- Commercial model not cascaded or built into ways of working.
- Staff trained the wrong way or not trained at all so use their own methods.
- Need a change initiative later to implement what was always envisaged but not focussed upon.
Benefits of engaging with Fusion-Commercial
1. Experience of the good/bad/ugly. Learning from the good & the bad.
2. Evolved a tried and tested methodology of what needs addressing
3. Track record in making a difference.
4. Assist your decision making to be based on fact & realism.
5. Hold everyone to account with integrity
6. Maximise synergies between people, systems and processes.
7. Gather best practice from elsewhere in partner organisations and implement along with other industry best practice.
8. Help you manage your stakeholders with good communication, a clear plan and regular updates.
9. We will “roll our sleeves up” and get stuck in with you to fill gaps in resources which often happen.
The Fusion-Commercial approach to mobilising a contract
As well as project managing the commercial mobilisation of a contract particular emphasis should be applied to specific commercial elements such as the following examples:
Define, document & roll out commercial systems and processes to reflect contractual payment mechanisms & company processes, procedures & policies.
- Cost capture processes.
- Subcontractor purchase to pay processes to maintain transparency, governance and control.
- Valuation & assessment processes to get applications and invoices paid from month
Define the configure of finance systems, works management systems & project controls to support performance management and reporting.
- Ensure that the corporate strategies for the use of core systems are adopted and any departures signed
- Ensure the client is invoiced in the correct way from month one
- Ensure costs are captured and reported in the correct way from month one
- Valuing work in progress
- Ensure meaningful CVR and accounts are produced from month one
- Configure structure within finance systems to facilitate effective cost capture together with a workable plan/forecast structure that can be tracked automatically and variances from the plan identified immediately.
Ensure the commercial strategies contained within the tender are cascaded to the right people. This is a key failing observed through more than 15 mobilisations in the last 20 years meaning that the important things are not monitored or tracked.
- Supply Chain:
Manage & track the procurement schedule.
- Ensure subcontracts & agreements with back to back terms.
- Risk: Risk & Opportunity management.
- Focus on the risk management process to ensure that the leadership throughout the operation drive a culture that considers risks & opportunities.
- Aligned with a cascade of information ensuring that the tender risk & opportunities are handed over for ongoing management and then incorporated into the day to day risk & opportunity disciplines ongoing.
- People: Educate & train staff to ensure that processes, systems and strategies are fully embedded as business as usual within the operation. Win hearts and minds to keep everyone pulling in the same direction:
- Process training
- System training
- Commercial training.
- Contract administration training.
- Development of best practice.
The key to an effective mobilisation is to apply a consistent project management approach by breaking the commercial elements and handover into bite-size, achievable chunks. Through numerous contract mobilisations and the lessons learned from each Fusion Commercial can assist you to ensure that this consistent approach is taken. A key aspect of this is to break the process into bite-sized packages so that each can be defined, planned and monitored to maximise the prospects of success. Examples of bite-sized chunks are listed below:
- Tender Handover
- Set the mobilisation budget
- Produce and share a Contract Review & Guide
- Kick Off Budget to Build or Contractors/Annual Plan
- Produce Back to Back Subcontract
- Develop a model to compare material & plant hire rates with tender
- Procurement Schedule, Enquiry & Analysis
- Overhead Recovery Model Tracking
- Key Outputs Cascade
- Rates/Prices, Method of Measurement & Specification Review
- Actual v Defined Cost Item Coverage
- Commercial Process Definition
- Define & Document Cost Capture WBS Structure
- Define Financial & Commercial Reporting
- Prepare Commercial Report Template
- Risk Register Kick Off and Implementation
- Commercial Training Collateral & Roll Out
- Where applicable system measure entry & reporting
- Cost Capture Training
Working with Us
Fusion-Commercial can help you to make your mobilisations a success. We are the enabler who will turn this common weakness into a strength for your organisation by setting you up to succeed. Click on the link below to discuss how our agile resourcing solutions might work in mobilising your project more effectively.