Commercial Plan
description producers & consumers template example
Description top
What does it contain?
A Commercial Plan sets out the commercial environment of a Project, including:
- a summary of the Project's commercial rationale (the objectives, and the Business Case of the End User/Customer, of the Supplier, and of the other parties to the Contract(s))
- an outline of the Project's commercial organisation (the roles and responsibilities of the senior authorities in the internal and external participants)
- details of the Project’s contractual framework and relationships (End User/Customer, Prime Contractor, Joint Bidder(s), Consortium Agreement(s), internal agreements between parts of your organisation)
- identification of key Contractual and Payment Milestones
- identification of the financial Risks and penalties that face the Project, and how it will be protected against them)
- Corporate accounting policies to be applied for routine financial management (e.g. opening and closing the Project, revenue recognition, profit taking)
- Contractual Issue Management and Change Control Procedures
- the management of the non-routine interface between the Project and Financial Control (via Commercial Events such as Acceptance)
- Delivery procedures (Goods-in times, Delivery documentation).
It might also cover:
- The applicable Quality Management System and Methodologies (Customer?, Supplier?, ISO 9000; PRINCE2™)
- key Supplier and End User or Customer Obligations (e.g. prompt response to requests for comment on, and Acceptance of, Specialist Products)
- arrangements for providing Status Reports to the End User or Customer
- Health and Safety requirements (Resources and Products (Deliverables).
Source(s) of information
Much of the information a Commercial Plan contains may in fact be copied, or quoted directly from the Contract with the Customer or the End User. However this close connection should be made clear, to ensure that any subsequent Contractual Changes are fully and accurately reflected in the Commercial Plan.
What is it for?
The key function of a Commercial Plan is to ensure that Project and Financial Management work effectively together. For example, it must make clear who is responsible for the various financial and commercial tasks that must be performed for the Project (e.g. revenue recognition, management of Acceptance, committing expenditure, approving Supplier Invoices and triggering Customer Invoices).
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Templatetop
The following Product Templates are available:
- For all Projects:
- a Word skeleton document called "Commercial Plan".
Example top
None