Commercial management is "the identification and development of business opportunities and the profitable management of projects and contracts, from inception to completion".
Commercial management within an organization is applied only at
policy
Policy is a deliberate system of guidelines to guide decisions and achieve rational outcomes. A policy is a statement of intent and is implemented as a procedure or protocol. Policies are generally adopted by a governance body within an organ ...
levels. Commercial policies relate to the rules or practices that define how business will be conducted and the standard terms under which external relationships will be conducted. Many of these policies are reflected in the terms of any
contract
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tran ...
in which the organization engages. At a transactional level, commercial management is applied through the oversight of
trading
Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market.
An early form of trade, barter, saw the direct exchan ...
relationships to ensure their compliance with business goals or policies and to understand or manage the financial and risk implications of any variations.
See also
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Contract management Contract management or contract administration is the management of contracts made with customers, vendors, partners, or employees. Contract management includes negotiating the terms and conditions in contracts and ensuring compliance with the terms ...
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Government procurement#Government Commercial Function and Government Commercial Organisation within the
UK government
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External links
World Commerce & Contracting formerly ''IACCM: International Association for Contract and Commercial Management'', founded in 1999, name changed in 2020.
[World Commerce & Contracting]
About World Commerce & Contracting
accessed 23 December 2020
e²cm: Ecole Européenne de Contract ManagementCMPro. The specialist portal for Commercial-, Contract-, Claim-, Construction- Management
References
{{reflist
Management by type