2022 - What do you want from your Commercial Team?

As we nearly complete our first week back from a well deserved seasonal break I am ever conscious that the role of the QS has changed over the past few years. With more contracts being Target Cost the tracking of cost information, budgets and forecasting seem to be the stock requirements. As a delay, change and dispute orientated commercial team we find ourselves in a scenario where our skill set is required and those we assist grateful for our inputs and advice.

Yet as a team we offer so much more than our skills in contract interpretation and dispute advice. We are actually very good at avoiding disputes and advise a great deal of our Clients to have the "hard conversations" where the positions can be advised in a manner to avoid the dispute.

As I undertook the CIArb's Mediator training what struck me was that we asked questions to elicit a certain response rather dialogue - closed questions. That training teaches you to listen. It is important that we listen to what is being said rather than hear what we think or want to hear. That may include piecing together and asking probing questions to get the issue in the open.

We are people, emotions and personalities often cloud our opinion or perception of situations based on our experiences. We have to accept that to some people the knocking down of a Subcontractors quote is good for us, whereas to that Subcontractor it removes any margin or recovery they may need. As such always look from both sides and try to understand each others point of view. Trust me you will not always agree, but ask yourself are you doing something just for yourself because you have the power to, or can you use that power to make the Project better?

We witness dialogue where the issue is hinted at or skirted around rather than laid our bare for all to discuss. Sometimes this is seen as confrontational but in reality if the message is understood it is actually the best of working together. It shows that the parties are mature enough to recognise issues and present them for dialogue and discussion.

So I ask those of you who are facing issues not to avoid them but to bring them to the forefront of what is happening on your project and have dialogue. Where parties agree to do something then do it. All the disputes we see have one thing in common.

Dialogue broke down.

Being involved in NEC contracts the Early Warning meeting is the ethos of this process. Yet we see so many meetings where on party says to the other, "what are you going to do about it", rather than suggestions jointly to understand if programme or cost is the key driver for the item in question. That decision needs to be understood and that lead has to come from the Client. From this dialogue then commercial matters will evolve but rejecting something because of commercial interest is not a healthy way forward for the Project.

So please think about this post and stop avoiding or putting off the difficult question for fear of upsetting someone. In the long run working together is the only way to achieve the Project goals and all parties may have to sacrifice something for the greater good.

For me personally I am going to achieve Expert Witness status so as to push myself further in 2022, what are you going to do different, please comment below.

Remember all disputes can be seen as the breakdown of dialogue. Start by having a conversation with yourself.