Ronald Francis
Capial Project Advisory
Contract and Commercial Management
Commercial clarity. Contract certainty.
AGSM UCLA Los Angeles
Supporting Financial Governance Through Risk Management
Contract and commercial management are distinct but closely aligned disciplines within capital projects.
Together, they support financial governance by translating project risks into contractual, procurement, commercial, and compliance controls that protect project value and support successful delivery.
Early involvement enables identified risks to be addressed through procurement strategy, contract structures, insurance requirements, tender documentation, and commercial governance measures before delivery begins.
Risk Integration During Project Development
On major capital projects, a structured risk management approach strengthens financial governance by identifying and assessing potential impacts early in the project lifecycle.
Clarity and accuracy in project definition, tender scope development, and commercial requirements are fundamental to reducing risk exposure, preventing disputes, and maintaining cost and schedule certainty.
When risks identified during project development are appropriately allocated and managed through contract and commercial frameworks, project teams achieve greater control over cost, schedule, and commercial outcomes across complex developments.
Contract Strategy and Commercial Governance
Before tender, the owner largely controls the project. After contract award, the owner manages the consequences of the decisions made before tender.
Risk identification remains a continuous and iterative process throughout project development and delivery. However, tender represents a critical transition point where procurement strategy, risk allocation, delivery approach, and commercial structure become embedded in the project and increasingly difficult to change.
At this stage, owners must ensure the right decisions are made before commitments are locked in and the project leaves the development phase.
Strengthening Early Project Decisions Through Delivery Experience
Where projects are strategically important, the level of governance, leadership capability, and delivery experience applied should reflect the owner’s tolerance for cost, schedule, and performance risk.
While industry standards widely define risk management and procurement best practice, outcomes are ultimately determined by the quality of early decisions and the experience applied during project development.
Engaging experienced project advisors with real-world delivery expertise enables owners to evaluate procurement strategy, risk allocation, and commercial structure through the lens of project execution reality, improving alignment between project intent and delivery outcomes.
From Project Complexity to Decision Clarity
Complex, high-profile projects are particularly vulnerable to delivery drift and cost leakage, making early visibility and proactive management essential.
Independent assurance that financial governance, commercial decisions, and delivery performance remain aligned with project objectives represents sound financial governance for project stakeholders.
Bring Clarity to Financial Governance.