Manage commercial, contractual, and procurement requirements

This standard is about managing the commercial, contractual and procurement requirements in the context of project controls.

You will need to be able to analyse commercial documents from a project controls’ perspective, prepare project controls-related content for use in commercial documents, recommend project controls’ inputs to include to meet contractual obligations, monitor and control commercial outputs, and use project controls information to support claim management and dispute resolution.

Who this standard is for
This standard is for project controls-related roles, including project controls engineers, estimators, planners, schedulers, cost controllers, risk analysts, risk managers and contract managers

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1. identify and prepare project controls content for use in commercial documents through the bid to contract to sub-contract process
2. identify project controls related requirements of commercial documents, and provide recommendations on the project controls elements included, checking:
   • what is achievable
   • that they are in line with organisation objectives
   • what is required to meet contractual obligations
3. source legal and specialist supporting information, as required
4. set up, maintain, monitor and analyse project controls data aligned with commercial requirements, and report on them in line with contractual arrangements in a timely manner
5. adhere to requirements for confidentiality and ethical handling of information as prescribed in contracts or commercial agreements
6. specify and produce project controls information to include in documents for bids, tender management and procurement to ensure they meet requirements
7. review the level of controls to ensure they are proportionate to the commercial or contract strategy
8. provide input to the selection of potential suppliers/contractors, including setting selection criteria and evaluating against agreed selection criteria
9. monitor the project controls service of suppliers
10. recommend project controls-related requirements to include as contractual obligations in commercial contracts and sub-contracts for:
    • supporting the meeting of legal and contractual requirements, including claim management and dispute resolution from a project controls perspective, by analysing and interpreting project controls-related records: against contractual obligations and identifying obligations fulfilled and not fulfilled
    • building a record of facts to use as evidence in potential claim management and dispute resolutions
    • adhering to processes to create, record and store project controls data and information
      manage commercial setup so that it is aligned to project coding structures

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1. relevant local requirements or procedures to consider in the supply chain network
2. different types of contractual arrangements, client/contractor arrangements, commercial proposals, contract/sub-contract relationships, contractual obligations relevant to project controls, and their implications for project controls and the supply chain network
3. the importance, limitations and drawbacks of different types of commercial contracts
4. contract forms, terms and conditions
5. contract management and contract administration, including an appreciation of how a basic bid to contract to sub-contract process works and how work is contracted to suppliers and sub-contractors
6. the relationship between contract and risk
7. the procurement process for goods and services, including tender management and supplier selection process
8. supply chain management
9. the relationship between client/organisational objectives, supply chain objectives and the procurement strategy
10. the key types of commercial considerations and processes and how to apply them in the context of project controls
11. a typical commercial lifecycle and its implications
12. how to apply project controls to meet the requirements of commercial obligations in contracts, tenders, bids, supplier selection and claim management
13. the importance of project controls in commercial and procurement processes, the limitations of the project controllers’ role and its responsibilities in this
14. how to source legal and specialist supporting information as required
15. the requirements for confidentiality and ethical handling of information
16. the process for auditing and supervising the project controls service of suppliers to ensure it is compliant with contractual requirements
17. the process for monitoring and reporting on sub-contractor performance throughout the duration of a contract
18. how to conclude contractual arrangements for contract management, tender management (bidding and sourcing/procurement) supplier selection process, claim management and dispute resolution
19. factors to consider in the flow-down of commercial requirements to the supply chain, in relation to project controls and that the related control activities are proportionate to the contract or commercial value
20. claim management and dispute resolution
21. contract incentivisation mechanisms and linkage into life cycle cost forecasting
22. project controls structures and coding and how to embed these in the commercial structure and contractual arrangements

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Additional information:

Commercial documents
These may include:

• bids
• invitations to tender
• responses to tenders
• supplier evaluations
• contracts

Procurement process
The scope of procurement process for goods and services may include:

• information needed from the supplier to support effective project controls
• tendering
• tendering rules and timelines
• approval gates
• subcontractor/supplier selection and criteria
• agreement to contract terms
• responding to tenders

Commercial considerations
The scope of commercial considerations may include:

• contract management
  • client/contractor
  • contract/sub-contract
• bid management
• tender management (procurement)
• risk identification and management
• supplier selection
• claim management and dispute resolution
• commercial control procedures and the impact on them of liabilities and obligations from legislative and regulatory requirements
• legal sources available for commercial advice
• requirements for confidentiality of information
• project controls structures and coding

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1

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2029

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Current

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Original

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Engineering Construction Industry Training Board

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ECI PC23, ECI PC26, ECI PC29, ECI PC39, ECI PC40, ECI PC41, ECI PC42, ECI PC47

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Contract Manager, Engineer, Estimator, Risk Manager, Project Controls, Cost controller, Planner, Scheduler, Risk analyst

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Contracts; sub-contracts; commercial documents; tenders; bids; procurement; supply chain; tender management; supplier selection; commercial obligations; commercial considerations; commercial requirements; contractual requirements; claim management; dispute resolution; legal support; confidentiality of information; ethical handling of information; local requirements; local procedures.

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