Commercial assurance involves a programme of independent, objective and expert reviews to answer two questions about the commercial management of a major contract or programme:
1. Is it broken?
2. If it is broken, what needs to be done to fix it?
For commercial assurance to be credible, the team carrying out the programme of reviews must be professionally qualified chartered accountants and auditors with up-to-date technical expertise working to the highest standards of ethical and professional conduct.
Commercial assurance can’t provide absolute certainty that there will never be a commercial problem but it will significantly reduce the potential by providing transparency and helping to spot issues early.
It will go a long way to preventing avoidable commercial disputes.
Benefits of our service:
- You get the benefit of credible people with the right experience and qualifications.
You wouldn’t ask a chartered accountant to carry out detailed design work or implement a health and safety programme. We are though, quite good at auditing and providing assurance.
- Demonstrates strong corporate governance to stakeholders
If the assurance programme identifies a problem, then directors can manage stakeholder expectations and demonstrate their awareness of the issue and the steps they are taking to deal with it. (A much more comfortable position than being surprised by the issue.)
- Identifies and deals with problems early and therefore more cost effectively
A £5,000 problem identified early in a project may become a £1million problem if it is left until final account. Weak commercial processes and unreliable reporting may store up problems which will result in an unpleasant commercial surprise in the future.
- Builds confidence based on independent and reliable evidence
Confidence between the parties, based on an independent, professional and objective third party opinion, builds trust and allows a focus on delivering the project objectives.
- Is cost effective
The cost of a commercial assurance programme is tiny (typically less than 0.2%) when compared with total project costs and in any case should demonstrably pay for itself many times over. In our experience the costs of the most successful commercial assurance programmes are shared between employer and contractor.
Talk to us today regarding commercial assurance.