Reflective Paper on Commercial and Contract Management in Projects

This reflective paper examines commercial and contract management (CCM) within the context of a waste management project in the oil and gas industry. The report begins with an introduction highlighting the importance of CCM and the author's role as an investigation officer. The paper delves into issues related to supplier management, including asset identification, strategy formulation, and opportunity identification. It references key concepts and principles of CCM, drawing upon the works of various authors to define contract management and its importance in the context of a complex environment. The paper discusses the importance of effective contract management. The paper concludes with a critical reflection on the CCM issues. The report provides insights into the challenges of supplier management, and the application of CCM principles in project settings.

REFLECTIVE PAPER

Table of Contents
INTRODUCTION...........................................................................................................................1
A. DELEGATE IN WORK ROLE .................................................................................................1
B. PROGRAMME CONCEPTS AND PRINCIPLES....................................................................2
C. REFLECTIVE ASSESSMENT..................................................................................................6
D. KEY LEARNING POINTS AND ACTIONS............................................................................8
E. CRITICAL REFLECTION.........................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
The following report lays emphasis upon developing a reflective paper regarding the
issues faced within commercial and contract management. This will be covered in the in context
to the professionals own work experience. So, the reflective paper will be including a delegation
of the assigned work-role. Moving forward, different concepts and principles in relation to
Commercial and Contract Management have been taken in consideration. Furthermore, new
insights & ideas have been emerged out in the section of reflective assessment. Moving forward,
the key learnings of the paper have been summarized in the section of key learning points &
actions. In the end, a critical reflection has been done upon the formulated reflective paper in
context to CCM.
A. DELEGATE IN WORK ROLE
Management of projects is definitely a crucial task to be handled. While working as an
investigation officer on the project of managing the waste generated through oil& gas plants,
there were some key issues identified. The major one which I found out was in relation to CCM
concerning suppliers. I noticed that issue was mainly faced in the process part wherein proper
identification of assets was not able to be done. Appropriate strategies were not able to get
formulated ans so delays ere there in implementation leading to ineffective management of the
contract. I also determined that lack was there in appropriate identification of opportunities.
Overall as per my viewpoint, this further led towards ineffective management of contract. Other
identifiable factor leading to this was the selection of not so relevant suppliers regarding the
project of managing waste from oil and gas plant. According to my personal viewpoints, the
authorities need to be updated about these key issues within the supplier section of process so
that relevant modification can be implemented by them on time. Effective management would
thereby assist in staying abide by the different principles and identifiable theories of CCM.
Adding more to this, I even had to evaluate other contracts done within the same field so that
from those projects the identified issues in the current project I'm working, would be effectively
assessed.
These lacking factors as observed by me further led towards selection of this topic for
further investigation. Since there has been inappropriate contract management due to these
factors, so it was my uttermost important duty to report to the managers. As an investigation
officer of the project, the lacking factors further grabbed my attention of choosing the topic.
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Furthermore, the identified CCM issues regarding suppliers further assisted in my career
development. The reason is that I even had to identify ways in which the higher authorities could
assess this issue. So, adhering to my responsibilities, I effectively decided to choose this topic for
my further investigation. Also, in relation to my role, I also have to evaluate the issues so that
authorities could implement the necessary modifications for enhancement of the overall
procedures. The oil and gas industry has always been within my area of interest. So this factor
was also responsible for choosing this project to evaluate the arisen issues.
Moving towards the set of questions assisting me in examining specific issue of suppliers,
the key ones would be what was the situation responsible for causing this. Further adding more,
another one could be identification of the authorities which were responsible for governing this
entire supplier section. Then the supporting questions would be identification of theories which
could be utilised in assessing these identified issue. I will be taking help of these possible set of
questions which would thereby assist me in conducting the literature review upon the CCM
related issue in the undertaken project. The conduction of literature review, will thereby help in
knowing the different principles as well as theories that would help in effectively managing the
contract procedure. These theories would also help me in analysing the ways in which
appropriate modifications can be made in the certain aspects of contract to assess the supplier
issue regarding CCM.
B. PROGRAMME CONCEPTS AND PRINCIPLES
According to Almeida,Hankins and Williams, (2016),the contract management is an efficient
process of developing and managing creation, execution and analysis of contracts to maximize
the operational and financial performance and reducing risks as stated by
As per Hunter, (2017), the contract management is a type of process that begins when an
arrangement is formally captured by the party. And it is completed when the contract that has
been commenced is not needed through natural decision or by any termination. This process of
contract can be observed as two parts the “pre-contract” and “post-contract” roles. One can
consider the contract management as continuous process. This will guide and assist to make sure
that it will neglect the post-contract team to make a second-guess to the thinking of pre-
contract team and will ensure continuity.
Professional and contract managers must work efficiently with clients, contractors and
subcontractors in order to meet the goals of organization . In an increasing complex environment
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that contain the increasing usage of contract supplies and services in government and industry
the number of contracts are developed. This represents a better knowledge of process that are
related to contracting and can be beneficial to both buyer and seller.
Accrding to Rey, Garrido and Calatrava, (2016), to reduce costs and improve financial and
operational performance the organization in some private and public sectors are facing pressure.
The result of increasing recognition of the importance and benefits of effective contract
management is due to new regulatory requirements, globalization, increase in contract volumes
and complexity. To improve contractual processes and satisfy increasing compliance and
analytical needs there is a growing recognition of the need to automate that this will lead to an
enhancement in the utilization of more proper and structured procedures of contract management
and enhance the availability of software applications that are developed to address their
requirements .
In order to make a successful contract management it is necessary that the service
delivery arrangement will continue to provide satisfaction to both the parties, and the realization
of expected business benefits and value for money,the achievement of expected business benefits
and value for money ,the supplier need to be responsible and co-operative, the obligation of
organization is understood under the contract, there should be no disputes and no surprises.
The seven-fundamental critical for contract management can be creation, negotiation,
adherence, service level agreements, managing changes, documenting and analyzing. In creation,
many organization works towards a standard contract, it need to be developed at first place and
can be changed as negotiations progress. In negotiation, the contract makes sure that the best
contracts are provided to both parties. As stated by Timmer, (2016), analyzing provide the
advantage that may be made from the contact .In adherence, the various goals and organization
are specified in the contract. The service level agreement is there to manage and see day to day’s
activities of the vendor performance. These managing changes are needed if there is a change in
relationship and a issue rises. In documentation, the agreed upon changes are mentioned.
The basic principles of contract management that must be used by organizations can be to
make certain that a contract will be able to give a best possible outcome to requirement of the
service needed, the objective and aim of contractor selection process need to be ensured, the best
value for the state must be obtained, to provide the requested services at acceptable quality levels
within a given time frames they must hold on to the accountability of contractor, ensuring that
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the contract must have an useful product that will serve the needs of the agency and the state. To
obtain needed service the organization need to verify that usage of contract is the most effective
and cost-efficient. Organizations need to make sure that services are important for the
organization in order to achieve the responsibility and that the current state employees are not
capable of providing the services. To address the importance of fair and open contractor
selection process. As per the given concept this type of principles will help the organization to
enter into contracts at the most competitive price with a most qualified contractor. In order to
make sure that contractors are potential organizations make sure that equal opportunity are given
services to the state. The selection of contractor do not depend upon price for professional and
technical contracts but it depends upon the quality of services and the desire to perform he
desired jobs. In order to obtain desired services, the organization include particular expectations
in the contract. According to Kashani , Sandborn and Cui, (2016), the organization can enter
into the contracts for the products they require in order to meet the goal and objective of
organization or to meet up the requirement of legislative .
The theory of McNeil's relational contract theory is related to the traditional “classical”
and neoclassical approach of doctrinal contract law in the common law countries and pays
attention towards the discreet character of contracts, can be considered as particular spot deals,
distinguished from the overall environment in which they involve. The particular type of law is
discussing under the current contracts law that is regulated by its own rules and regulations. His
theory focuses on the phenomenon of exchange and the behavioral aspects of contracting.
The commercial management is a process of controlling or managing the transactions
related to finance of a firm or an agency with the goal of earning profit as stated by Mills,
Devery and Nalewaik, (2016) .This is applied in an organization on the policy levels. It is related
to the rules or regulation for conducting the business in an organization and standard terms under
which external relationships can be conducted. Such type of policies are reflected in terms of any
contract in which the organization engages. Commercial management at transaction level is
applied to oversight the trading relationship to ensure their cooperation with goal, policies of
business and to get to know or manage the implications of risk of any variations. According to
Semin, Khakimullin and Sokolova, (2016), there are various advantages of effective contract
management such as the quality of service and customer focus is improved, there is a greater
value for money and cost control, decrease in managing the crisis, level of risk is reduced, to
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change or development in the market there is an effective implementation in relation to change
or enhancement in the market, there can be continued improvement through incentive based
contracting and sharing of risk, poor contract performance can be identified .
As stated by Suprapto, Bakker and Hertogh, (2016), the principles of contract and commercial
management are to make sure that contracts are well known and understood by the people in the
management team as it will make sure that resources allocated are recognized properly and are
appointed well before the contract awards and handover is efficient from sourcing to contract
management.
The second principle given by Mergel, (2016), could be about roles and responsibility in
order to ensure contract and commercial management ownership process and mechanism of
governance are clear with roles and responsibilities that are defined at appropriate seniority
levels. The Contract and Commercial Management Plan need to be documented by the contracts.
The third principle as stated by Lindsay, (2016) can be development and usage of strong
governance arrangements to manage risk and enabling strategic oversight this will make sure that
structure of government are proportionate to the risk and size of contracts and commercial that
will support the business output and goals. Use and understanding of contradiction options like
plans for rectification and Step in rights as per the Kashani , Sandborn and Cui, (2016).
The fourth is adoption of differentiated approach that is based on risk. It will give
comparison between tactical and strategic contracts,thus directing the maximum resources to
contracts and commercial whereas the rewards and risk are maximum. The fifth can be
management contracts and commercial for business/public services outputs. The owners of the
required outputs need to be accountable for successful performance of contract and need to work
closely with commercial staff to manage the contracts. They must pay attention towards
successful results and take consideration about public services and risks. The sixth is about the
acceptance of the change that will occur and making plans about it. This will lead to develop a
flexible approaches that will change by working jointly with suppliers,During the contract life
both the parties will be affected but cost control with robust control mechanisms. To prevent
changes from altering the strategic intent of the contract they need to make sure senior level
assurance and controls are in place. The seventh can be adoption and encouragement of mature
commercial behaviours. According to Johansson , Siverbo and Camén, (2016)this can be an
open and accept to plans,explore and utilization of proper structures of commercial.
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C. REFLECTIVE ASSESSMENT
From the identified concepts of commercial and commercial and contract management, it
could be said that the chosen project based upon oil and gas industry concerning waste-
management, effectively needs improvements. Since the identified issue was in context with
suppliers process, identified principles will definitely assist in enhancing the financial
performing through modification of certain aspects of suppliers process.
The formulated contract first requires the aid of efficient managers that would be
effective assist in appropriate choosing of suppliers. The effective coordination among the
managers and suppliers will effectively assist in enhanced identification of opportunities
regarding the project. Further, adding more to this, the level of professionalism has to be
maintained in choosing the suppliers. The chosen suppliers need to imply by the pre and post
contract terms so that management process remains consistent with the principles of commercial
and contract management. Emphasizing the present times, the needs and demands of the supplier
sector have been facing a rapid increase. As an outcome of this, for the purpose of meeting the
organisational goals, efforts need to be further introduced in making the suppliers chosen more
effective. In further addition to this, implying the principles of CCM will definitely be assisting
in raising operational performance of suppliers as well. With the aid of implying the effective
management, ample of opportunities could be identified keeping in mind complex environment
of from the chosen sector. As per the principles identified, the most important need is to make
the entire process of supplier automatic so that effective handling could be done. To effectively
contribute in making improvements within the suppliers part that is increasing opportunities,
formulation and implementation of strategies, everyone ion association with the contract has to
stay updated with the all principles of CCM. The arrangement of service delivery is likely to
assist in enhancing the business aspect benefits thereby increasing the money values. By
improving the sector of suppliers, the expected benefits ion business concerning oil & gas
industry could be earned.
Observing the 7 principles of contract management, seeking the issue most relevant and
appropriately applicable ones will be negotiation, documentation and management of the
changes. These are likely contribute in the effective commercial and contract management
procedures of undertaken projects. Undertaken principles would efficiently contribute with
minimising the disputes which may while working with the suppliers. With the implication of
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negotiation principle, all the parties in association with contract, including the suppliers as well,
would be provided with best of the terms and conditions so that both organisational as well as
individual benefits are attained. With the aid of management of changes, the strategy
formulation and implementation is definitely going to be assessed leading towards enhancement
of opportunities. The implementation of documentation principle will be acting as an evidence
upon the implemented changes by the authorities. With the aid of implying all the principles of
commercial and contract management the most suitable and relevant requirement in assessing the
supplier issue would be done.
Since issue was also found in the inappropriate choosing of suitable suppliers, this is also
likely to get assessed by the implementation of CCM principles. The selection process in case of
supplier needs to be an open process. This way with the aid of efficient suppliers, appropriate
and relevant strategies are likely to get implemented. With an efficient team of suppliers the
competitiveness of the project will efficiently face enhancement. Furthermore, adding more to
this, there is another theory which could effectively assess the supplier CCM process issue. This
one is the McNeil's relational contract theory which would be emphasizing upon diversified
exchange phenomenons that might occur among the suppliers and authorities of contract. This
would also lay emphasis upon analysing the suppliers by evaluating their different behavioural
aspects.
If all the principles and theories are implemented in an effective manner, the commercial
phase in context to contract are likely to rise. Henceforth the profits earned will be more. It is the
responsibility of all the organisational authorities as well as the investigation officer, to stay
abide by the diversified policies and regulations which would be governing their relationships
with the suppliers. These are also likely to help in identification of the risks associated with the
supplier process in the project of waste management in oil and gas industry. The effective
identification of risks and variations as well are likely to assist in enhancing the performance of
overall project execution. Also, the standards of the current performances are also likely to get
enhanced thereby helping in selection of relevant suppliers.
Contextualising upon my individuals role as an investigation officer, efforts need to be
incorporated from my side so that efficiency could be increased. Adding more to this, I also need
to stay abide by the different regulations concerning contract so that my ability of doing tasks
allotted to me is increased in terms of efficiency. Further adding more to this, the process by
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which I identified the key issue also required improvements. The improvements could be made
in terms of taking effective help of team members as well. Involving the members of team is
likely going to help me in efficiently performing the task of diversified aspects of contract. The
activity of identifying key issues related to commercial and contract management as followed by
me also needs improvement so that more specific elements could be identified. So, overall, my
skills are definitely requiring minor improvements in terms of identifying detailed perspectives
of issues concerning CCM of undertaken project.
The conducted literature upon principles as well as theories of commercial and contract
management effectively assists in assessing the identified issue within the undertaken project.
Adding more to this, these mentioned principles, concepts and theories are likely to help in
assessing such of possible issues in future as well. With the aid of them, I will effectively
evaluate the supplier related activities in future so that the authorities do not have to face any
problems regarding performance. Staying abide by the commercial and contract management set
of principles, the expected profits are likely to get attained. This would further contribute
towards enhancement of profits as well. Also, to address the problem of supplier in future,
authorities need to conduct a screening test for the supplied materials from suppliers which has
to be passed in order for getting selected as per company's standards. Also, adding more to this,
to assess the effective commercial and contract management, the technique of digitization can
also be adopted in order to maintain the records of involved suppliers. This would greatly assist
me and other organisational authorities as well to evaluate the supplier's performance. This ease
of evaluation will assist in dealing with them more effectively and accordingly apply the most
relevant & appropriate strategy.
D. KEY LEARNING POINTS AND ACTIONS
With this report I as an investigation officer of oil & gas plants recognized various key
issues. The main issue was related to the CCM suppliers. The resources were not identified
properly,proper plans were not made. All this collectively were making the contract inefficient.
The opportunities were also not recognized properly. This rising problems of CCM suppliers
lead to the investigation on this topic. Analysing various theories that will guide in appropriate
modifications in the field of contract. The contract management can be seen as two parts the pre
and post contract. The contract managers work collectively with customers to meet the goals of
organisation. There are various principles of contract and management that can be used to solve
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the issue of contract in oil and gas plants. The principle of CCM states that contract are
understood by the clients in management will make sure that need for resources are identified
properly and appointer well before. From the problems specified in the inefficient contract there
is a need of improvement in the oil and gas industry. The new formulated contract need the
efficient mangers that would guide efficiently to choose the suppliers. To remain consistent with
the principles of commercial and contract management the chosen suppliers need to apply pre
and post contract terms properly.
An action plan is list of documents that will state the steps that need to be occur in order
to achieve the particular target. In this issue related oil and gas plan I would like to make a action
plan that would first will represent the issues that are arising then stating the principles of
contracts and commercial management and thus developing effective contract that would
allocate resources properly and can identify opportunities for meeting up the goals of
organisation. I was expecting that through this report I would learn about the principles and
concepts of contract and commercial management. I learned what all issues occurred in the oil
and gas plant and theses issues can be solved by developing proper contracts based on the
principles and concepts of contract and commercial management. I learned that if the
coordination among managers and suppliers is effective then the opportunities can be recognized
properly.
I learned about the forming and adoption of mature commercial behaviour and also
making use of those contract that will provide huge profit and rewards to the organization. The
new skills,techniques I have acquired is use of contract and commercial management principle in
the contract in order to make the contract more efficient to meet up the performance and goal of
organization.
E. CRITICAL REFLECTION
There were various issues that were identified in oil & gas plant while I was working as
investigation officer on the project. The major problems were related to resources and
opportunities. As the proper resources were not allocated and appropriate plans were not made
by the organization which gave rise to the inefficiency of contract. By doing this assignment I
thought I would learn about importance of contract in organization,the principles and concept of
contract and commercial management and how these principles can help to develop a strong
contract for the organization in order to solve the various issues that are arising in that particular
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organization. Everything went well as the principles and concepts of contract and commercial
arrangement were easy to understand .The issue that supplier was not identified properly was not
so good as it was difficult to recognize efficient supplier. I founded that by making use of
efficient and appropriate contracts supplier can be identified properly and also the resources and
opportunities can be recognized to meet the goals of organization.
I would like to change the team and selection process that would develop plans and
strategies. The selection process need to be changed so they can appoint team members that will
make up a better strategic plan for the company to achieve the target.
CONCLUSION
From the reflective paper carried upon the different aspects of commercial and contract
management, a major issue was identified from the side of investigation officer. The CCM
procedure in context to suppliers was being under the major issue. However, if the diversified
principles of CCM are readily implied within the current procedures in context to suppliers, then,
improvements are likely to be overseen in the coming stages of the oil& gas industry project.
Further, adding more to this, to effectively assess issue in future as well techniques such as
digitizing records of suppliers are likely to be helpful. The reflective paper also assists in
assessing the key roles of investigation officer and his role within the identifying & evaluating of
the issues. If all the parties associated with the contract are able to assess the diversified
principles of the CCM then, enhanced profits and revenues are likely to be attained.
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