Hi Lisa - look, I'll give this a go. And these are my personal views and experiences.
Mission critical parts to us would mean that it would likely be called a Significant Service Contract here in New Zealand. Right now, with a greater focus on broader / social outcomes in place across many organisations, internal culture might indeed get a rating, or be evident in measures about environmental outputs, staff training or recruitment.
That said, you'd expect for mission critical parts that the greatest weighting would be their ability to deliver, and depending on the total weightings, it's probably likely that a company that can show this better, even with a lesser internal culture, would be likely to end up chosen in a supplier relationship.
Yes, at least to the extent that 'culture' reflects underlying honesty and integrity. If something is mission critical, it is essential that the supplier is reliable. It is also important that they do not represent a reputational risk, especially if transfer to an alternative supplier would be difficult or take time to achieve.
• World Commerce & Contracting
This is a difficult question to answer because it rather depends on organisational design and, to some extent, the nature of the project.
Commercial and contract considerations should be in place from inception of the project concept and design. There should be a commercial analysis to understand the business requirements and to determine the nature of the commercial relationships and contracting models that will be needed. If this is a relatively standard and low risk form of project, the decisions may be quick and easy to make.
Too often, projects are initiated without proper thought being given to the commercial risks and opportunities. As a result, assumptions can be made with regard to the form of relationship and the underlying terms. By the time commercial or legal resources get engaged, it is often too late to alter some of these assumptions, or doing so creates major delays.
Another issue arises in the context of post-award contract management. Frequently, the implementation and operational resources are not the same as those who were involved in the original tender and negotiation. Good practice here is to start involving post-award contract management during the negotiation so that they have a good understanding of the final agreement and can move rapidly once it is signed.
You may find several IACCM resources are helpful. I will send you a paper on the Role of a Contract Manager. You might also look at the 2019 Benchmark Report which sets out the typical work areas for CCM staff. We have also undertaken a cross-industry project to define the contracting lifecycle.
I made my initial comment about organisational design because the critical point here is about competence in performing a role, rather than a specific job title. If, for example, you have project managers who have specifically been trained in contract and commercial management, they may have the competence to make front end decisions.
Do get in touch if it would be helpful to discuss this in more detail.
• GMR Energy LImited
I agree with Tim that requirement of commercial & contracts manager is required at each and every stage of the transaction right from beginning i.e go or no go stage . To be a good commercial contracts manager one should be able to understand technical ,legal, finance, business risks, insurance, taxes etc. rather all aspects of a business. They need not be an expert but need to cut thru the clutters of complicated matters involving multiple dimensions and factoring them appropriately in all the documents created for signing with the counterparts,decision making etc.
Typically in any organisation depending on the confidence level of the management one enjoys and ability to contribute in bringing different dimension to the table than other participants , he /she would be kept in the loop as a commercial & contract manager.
Problem with commercial & contract managers is that every project manager for that business manager/engineer feels that they know contracts/commercial matter ( which they might be right in some cases) and go beyond their briefs while they can get away in small value low risk item contracts, it gets complicated when contracts are of high value, long term with multiple risks.
• World Commerce & Contracting
I think perhaps part of your question is missing, but let me try to answer what I think you are asking!
Most contracts will have a provision relating to the right and the process for making revisions. How this works will usually depend on the nature of the agreement. For example, if it is a Master or Frame agreement under which there may be multiple individual transactions, it is common for the change provision to state that a change can be made simply by giving notice and that it will apply to all future orders or supply (i.e. there is no need for acceptance by the counter-party).
If the change affects an existing order, organizations sometimes try to specify that they will give notice and the change is effective unless rejected by the counter-party. However, this is of questionable enforcability. Therefore it is more normal to issue a formal notification of change and for this to be effective only when accepted by the counter-party. IN terms of administration, the biggest factor here may be what the contract then deems 'acceptance' - for example, is an email or a text sufficient, or does it require an authorized signature? In making this decision, you also need to consider the jurisdictional laws regarding acceptance.
Finally, if the contract does not include a provision relating to changes, you may want to insert one as part of the change you are now planning to make!
• World Commerce & Contracting
This is a great conversation to be having and an extremely important one. Mental Health is necessarily going to be impacted by our current situation and we all need to be extremely mindful of this.
I am extremely interested by the number of individuals and organisations that are very unfamiliar with working from home and it's not an easy transition to make. Equally I think everyone is quickly realising the importance of stable technology in this environment!
In terms of the good and the bad. As an Association, we are very familiar with working from home and being remote from one another - we are a team of about 40 people and situated all over the world. That said, these are different times and we feel even more need to stay connected to one another. So we have introduced Social Catch Ups, we had a virtual hen party yesterday for one of the Team and today we are doing a virtual exercise class for all of the "Children of IACCM". I am also personally incredibly impressed with the creativity and innovation that is coming out of my Team at this time. I hope you're enjoying all of the webinars and various initiatives that we are pushing out.
In terms of the bad, indeed we have to be so careful about people just working non-stop. So keeping weekends sacrosanct and taking short breaks (I am not sure many people want a full two weeks off at the moment) is really important and we are encouraging people to do this. Equally encouraging people to take exercise every day is critical. We are an Association of dog lovers so this also comes naturally to many!
We are planning to do a webinar on this topic so I look forward to hearing other people's experiences and sharing those in a webinar environment too.
Thanks again Darren!
My company is small. We have an office where approx 2/3 of the team would go in every day with 1/3 part-time-remote (long distance hires). Two weeks ago, on a Tuesday, we closed the office. The first few days were folks bedding in and mostly finding it unusual. We started a well-known paid-for video service which has been awesome and an Instant Message service for business issues and importantly a channel called "office_banter". By now I would say that the whole team is functioning at full capacity. Our solution is just like thousands of other enterprises. After several months of this will it be the new way of working?
I worked in several Russian companies as Contracts Manager and in related roles at both domestic and international projects. What I can tell you exactly is that there is no such thing as specific Russian Commercial Management, there are may be some cultural differences between Russian and Western Europe management style, but methodological basis is based on the same principals and sources.
If you have any specific questions, I'll try to share with you my thoughts and observations based on my past experience.
• World Commerce & Contracting
Thanks for your answer, this confirms what I had originally thought!
Is there any reason why there isn't any Russian Commercial Management? Is it linked to hierarchy in the business structure?
Also, would it be worth adapting it to Russia? Or is Russian "Contract Management" more of a legal job better suited to lawyers?
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