The construction industry is all about accuracy, teamwork, and smart thinking. These are the qualities that a commercial manager must possess to do his role. The managers are crucial to the success of projects through financial and risk management. They are the agents who ensure that the project goes smoothly for the stakeholders. However, as the field matures, they have to embrace new tools and market forces and deal with new problems.
This article focuses on the role of the manager and the skills, training, and tools required for that role. These skills may range from contract management to project resource handling and the adaptation of new industry trends. Hence, commercial management skills are essential for success in any field, including construction. So, keep reading till the end.
What is a Commercial Manager?
A commercial manager deals with managing a project's finances, including things like budgets and partnership terms. They work with the client to help grow a profitable business. They also manage contractors in working to meet deadlines while maintaining quality and compliance. Also, they keep the team intact through all its challenges. Their skills are crucial in working out projects and ensuring their success.
Managers help ensure that the team’s strategy is optimised for every aspect of the project. Their job includes managing the budget, reducing risk levels, and engaging with other parties, including the team. In other words, they are the catalysts in the day-to-day work and conclusion of a project. Without them, the project will not succeed.
The job of a Commercial Manager
Commercial managers are not limited only to contract management. They look after several tasks attuned to project planning, resource use, and compliance. Managers also work to ensure there are no problems in enforcing project plans. In other words, they are the main agents for the project's work and completion. Their roles include, but are not limited to:
- Contract management: This includes all the procedures done in terms of a specific project contract, including but not limited to its conclusion, negotiation, and execution. It also involves meeting the terms with minimal loss.
- Budget control: budget control includes and is not limited to the management of costs, cost reports, and the use of corrective actions to curtail costs.
- Resource allocation: In simple terms, resource allocation is the efficient and effective use of resources for specific projects.
- Rules and legal compliance monitoring: This refers to ensuring adherence to rules for safety, health issues, and environmental concerns.
Among the primary goals of a commercial manager is ensuring the success of the projects both in terms of budget and the work phase. This is the case because they entail managing projects, reducing costs, and signing contracts. Through their projects, the members of the building trade focus on meeting difficult challenges and gradual enhancement. In doing this, project goals are met under the target time frame and budget constraints.
Changes in the role of Commercial Managers
Their jobs change all the time, so they can keep up with the needs of a business that is always changing. Commercial managers have to learn new tools, ways of doing things, and problems. For example, going green and going digital are the latest trends. Thus, the job of business managers has changed a lot because of new technologies and changes in global markets. They now have to deal with:
- Using advanced tools: Using tools like Building Information Modelling (BIM) to make processes more efficient as part of the digital age.
- Sustainability: If you want long-term success, you need to use eco-friendly products and methods.
- Globalisation: When working on projects in other countries, learn how to deal with issues of culture and rules that are different from your own.
A commercial manager can show that they are thoughtful leaders who can handle change well by embracing trends like modular building, IoT integration, and globalised markets. In this fast-paced business, it's important to stay flexible. Consequently, you will gain an edge over other managers if you adopt such a flexible mindset.
What skills do successful Commercial Managers need to have?
To do their jobs well, a commercial manager needs to have both technical and people skills. Some of these skills include clear thinking, knowledge of financial matters, leadership skills, and social skills. For the business manager to be effective, he must develop a blend of both hard and soft skills, which includes:
- The Technology Skills: Financial knowledge includes setting a budget, finding prospects and assessing return on investment (ROI).
- Critical thinking: This is the kind of thinking that aims at resolving issues and making good sense out of information.
- Tech Skills: Proficiency in basic office applications like Oracle Primavera and Procore, among others, is essential.
- Soft Skills: Soft skills involve making certain that the terms satisfy everyone and resolve a conflict.
- Leadership: Leadership is how a leader plays the role of convincing people within his or her teams to work as a cohesive unit and inspire them to achieve more.
- Adaptability: Adaptability involves doing well as the market changes.
A commercial manager can handle both strategy and work needs if they develop these skills. By merging technical knowledge with good communication, they can make the team and the project successful. Imagine having all these skills as a manager - you will reach new heights in your career.
Commercial Management Tools
For a commercial manager to make his work easier, he needs to use updated tools. Platforms like Procore and Oracle Primavera make managing projects easier, and finance dashboards make sure that planning and forecasting are done correctly. They can't do their jobs without modern tools that make them easier. To elaborate, here are some important solutions:
- Procore: This is a great project management tool that lets everyone work together and see how things are going.
- Oracle Primavera: Excellent for keeping track of complex building schedules.
- Financial dashboards: Custom tools that help you keep track of your budgets and spot trends.
Business managers who know how to use these tools are not only more productive, but they also stand out as creative and resourceful experts in their field. These aids enable a commercial manager to increase efficiency in their work and achieve more success. Therefore, use these tools if you're a manager working on a project.
Emotional Intelligence in Business Management
Emotional intelligence relates to the ability to have people come together as a group and help in addressing a given challenge. Commercial managers can leverage the above-stated aspects in winning trust, resolving conflicts, or managing people under challenging conditions. Emotional intelligence in business management is as necessary as the acquisition of technical skills. Additionally, EQ is of use in the following:
- Solving problems the polite way.
- Interacting with people effectively.
- Assisting people in overcoming challenges quickly.
Keeping in mind both the technical and the people aspects, a commercial manager ensures the successful completion of projects and unity in teams. They also keep strong and positive engagement of stakeholders on a long-term basis. Dynamic managers have both hard and soft skills that help the company do well in the long run.
Management in the Construction Industry: Leadership for Commercial Managers
A commercial manager is expected to be creative and employ holistic leadership to maintain team spirit and complete their work on time. Each of these styles has its advantages depending on the team and the job. Simply put, every project demands a great deal of practical leadership if it is to be accomplished. Here are a few styles that are regarded as effective leadership styles:
- Adaptive leadership: This includes making people and teams embrace change.
- Serving leadership: An example of serving leadership is addressing the needs and growth of subordinates.
- Holistic leadership: This means supporting members in taking part in the decision-making processes.
Such a commercial manager will be able to manage challenges and keep their members creative and productive by mastering these leadership styles. Therefore, adopt a specific leadership style so your team can perform better and achieve the project goal within the set time. As a manager, you are the one leading the team to its destination.
What is the impact of commercial management in the construction sector?
Construction Commercial Management ensures good use of finances while handling any construction projects to achieve business goals. It involves tracking contracts, lowering risks, and making the best use of resources to get things done faster and better. Thus, they help make projects work and meet the needs of all stakeholders. Some of the major roles of a commercial manager include:
- Financial security: They ensure the projects make money, which makes the stakeholders happy.
- Well-drafted contracts: They help avoid conflicts and resolve any vagueness in the papers.
- Engagement with members: They ensure that the client, investor, and team are on the same page.
A commercial manager is a key agent of project outcomes because they manage the use of resources and the running of projects. Efficient operations management leads to enhanced client satisfaction, increased work efficiency, and improved incomes despite the competition. As a result, their function helps the team and the entire project work.
Examples of good business management in the real world
Real-life applications make commercial management crucial. Some of these examples show how skilled business managers can make a difference, from cutting costs to easing the work processes. Hence, these cases show how important it is to have good commercial management. Let me put it this way:
- A smart contracting system enabled a major construction project to reduce the overall project cost by 20 percent.
- Construction works using modular technology shortened the work of a global project.
It is also helpful to study these cases; a commercial manager gets an idea of how best to resolve such issues and the challenges and learns their solutions. As such, case studies are proof of how managing businesses effectively translates into tangible results. Therefore, with the right skills and mindset, you could be the next success story.
Certifications for Commercial Management
Getting certified as a commercial manager shows that they know what they are doing, which can help them get a job. Things change quickly in business, and these courses help him stay on top of things. Therefore, a manager's professional credentials enhance their status. The Certificate in Commercial Management (CCM) is one of these credentials. It gives you the following benefits:
- Global recognition: It enjoys acceptance across all domains and locations.
- Advanced skills: More advanced skills include a better grasp of managing contracts and money.
- Career advancement: Career advancement offers better chances of securing top positions.
For a commercial manager to stay ahead of the curve in the very tough global market, he needs to keep training. This will help him build trust and stay on top of trends. Getting certified is a good way for professionals to stay ahead in the constantly changing building business.
The College of Contract Management offers training programmes with a specific focus. Estimating, managing a construction site, and managing contracts are all very useful classes for professional growth. You can get quality training at the College of Contract Management that includes the following:
- Estimating Techniques: Accurate estimates of how much jobs will cost.
- Site Management: One of the best ways to run activities on the ground.
- Contract Management: We simplified the legal and financial aspects of the course.
Receiving training helps a commercial manager stay on top of their game. This training will give them the knowledge and skills they need to be successful in the long term. The College of Contract Management has classes that can help you learn new skills and get better at the ones you already have.
Growing as a commercial manager
There are many options for those ready to learn and change in the field of commercial management. Thus, you must constantly work and accept the changes in technologies and trends in your field to survive in the market. By mastering the necessary skills, using the most recent technologies, and enrolling in management programmes at online platforms like the College of Contract Management, it is possible to succeed in this dynamic market.
The College of Contract Management offers courses for all those willing to acquire knowledge and skills in commercial management. You can take these courses whatever your experience in the field. Thus, your career goals will improve after taking any project management courses offered by the college. Go to the college's website and take your business management skills a notch higher today.
