So What is the 1, 2, 3 of Commercial Management in UK Construction.
If you DO NOT have anyone currently working in your business specifically, looking after the money, and your day to day commercial interests (not an accountant), then you may not necessarily be aware of exactly what Commercial Management can offer and deliver for your business ?.
First Here’s the Science (bear with us).
Well to start off and quite simply: physically, this is work carried out by a person, normally trained or with experience as a Quantity Surveyor, and who is responsible for the assessment of the quantity, value and profitability of all building works as part of a Construction Project, and as carried out on a Construction site.
Commercial Management is a discipline or if you like; a profession / trade and or skill set.
To explain the role of a Quantity Surveyor:
A Quantity Surveyor, can be involved with the measurement, pricing and procurement of work, the preparation and agreement of Sub Contract Documentation terms and conditions, the placement and subsequent payment of sub contracts and purchase orders, sub contract administration and the assessment of the value of any work carried out on site, either as part of, or in addition to, the agreed scope of the Sub Contract Works for Payment.
To explain who SME & Sub Contractors shall be dealing with “in the office” of their Employers:
In UK Construction, it is not uncommon for medium to larger sized / Corporate / Plc Companies: such as National Main Contractors and House Builders, to in fact have a Commercial Department comprising of: a Trainee or Graduate Quantity Surveyor / Assistant QS / Quantity Surveyor / Senior QS / Managing Surveyor / Commercial Manager and or Commercial Director. This can be confusing at times particularly when Job Descriptions for certain roles may vary from company to company, for example one companies Senior QS maybe another companies Commercial Manager, there is unfortunately no prescribed set standard.
Now here’s the good stuff:
Ad Valorem Commercial Management:
One: Commercial Management however, can be much more than this, for example: an experienced Commercial Manager from Ad Valorem, shall have dealt personally with all of the day to day Quantity Surveying tasks for a number of years, and possibly for a number of different companies and in a number of different sectors of Construction, until such time, that these tasks shall have become second nature to that person and they shall understand in detail how each process works both in theory and more importantly in practice.
Two: Important characteristics, shall be: Proficient through Experience, Credible through Knowledge and have Gravitas through the benefit of astute Commercial Acumen. In our view @ Ad Valorem, Commercial Acumen, is a natural talent and attribute and not something which can be taught.
Three: Finally, a Commercial Manager @ Ad Valorem, shall be familiar with the workings of a Sub Contract and its administration, have a practical working knowledge of Construction Law and ensure, that there is always a strategy in place (and agreed) so that everything is clear and understandable for our Client(s). We are pragmatic, open and transparent to Clients in terms of what is required to make the sub contract work for them and be fully in tune to what is precisely required for the running of a profitable sub contracting business and how to interpret and determine what is necessary to deliver an adequate Business Overhead, Site Preliminaries, Direct & Indirect Site Cost to be able to earn a Sustainable Profit.
Now here’s the really good stuff:
So SMEs & Sub Contractors shall no doubt be thinking : What’s in it for me ?
If you are a SME, such as a local small builder or developer or a Business Owner of a specialist trade Sub Contractor, then in all probability, YOUR BUSINESS shall benefit from having a Commercial Manager working in your business. If you don’t have one at present and are currently doing everything yourself without doubt you simply don’t realise it yet.
But then we would say that – wouldn’t we ?
Well in fact NO WE WOULD NOT.
And Here’s the interesting bit:
If Ad Valorem can not help you, we shall be the first to tell you. This is why we encourage all prospective new Clients to first book a free and without obligation Saturday Morning Surgery with time slots available *every Saturday Morning between the hours of 9:45 to 11:45 am. This is an ideal opportunity for any Business Owner to discuss openly and in as much detail as they may (or not) wish, any particular issue or potential problem in full confidence and Ad Valorem can explain what options may (or not) be open to them. Or of course, you can just call or message us during the week. If you like Try before You Buy?.
You can Ask: What’s in it for MY BUSINESS ?
Our expertise, shall help you understand the true cost of running your business; Overhead, Site Preliminaries, Base cost of the works, Tender Rates and Sustainable Profit.
Our Monthly Reporting will show a Job by Job Profit/Loss explained in easy and straight forward terms on 1 sheet of A4 paper and how your business is performing against projected Cash Flow.
Our Sub Contract Account Management shall help create positive Cash Flow building up with a Cash Reserve.
Create more time for yourself, Stop trying to be the master of everything, in your business, as business owner your time spent on your business is key.
Create more time for yourself, by taking the first step and make the decision to have someone else concentrate on your commercial interest and provide you with real time information allowing you to take informed decisions.
Create more time to concentrate upon what you excel at: just like you first planned when you started out.
Get What You Deserve:
Have a set of terms and conditions that allow the sub contract finally to work for you.
Be able to anticipate a positive and maximised cash flow, timely and full payment and less susceptible to the rigours of retention and retention management.
Finally reap the rewards of all your hard work, long hours, sleepless nights and self sacrifice, pay yourself a salary / dividend and stop being the lowest paid member of the team.
What is important to you for peace of mind:
We offer a Service which is affordable and with a Flat Fee up front, so you can understand completely your liability.
We offer a full and inclusive Commercial Management Service for a fraction of the Cost of a PAYE Equivalent.
We offer the alternative of a specific tailored Service to address one specific element of the full service.
So what do you think – is there a place for Commercial Management in YOUR Business ?.
Here’s how to find out:
Our Service Details are outlined on our Website @ advaloremltd.com/our services which can then be followed up by contacting us for a full detailed scope of service and fee information.
If you don’t change things, then results (at best) shall stay the same as they are – take your business forward, the most important decision for your business IS THE ONE YOU DONT MAKE – Call or Message Us @ Ad Valorem.
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