Contract Management Practice

SAMPLE TEMPLATE - Commercial Management Plan

COMMERCIAL MANAGEMENT PLAN

Project name:………………………………………………………………..

Project ID number: ……………………………………………………………

Contract name: ………………………………………………………………..

Contract description:…………………………………………………………..

CMP prepared by:……………………………………………………………..

Date:…………………………………………………………………………….

Version [0.0]
[Date]

Ref: -The World Bank Guide for Contract Management 2018

PROJECT DESCRIPTION
[Insert a brief description of the project under which the contract is being implemented]

GENERAL CONTRACT INFORMATION

Contract Title
Contract Number:
Contract Type:
Location:
Contract Start Date:
Contract Duration:
Contract end Date:
Contract Amount and
currency
Name of Contractor and
address

PURPOSE OF THE CONTRACT MANAGEMENT PLAN

[Indicate the purpose of the contract management plan as it relates to the contract under
consideration.The information shall include the intended user, values and benefits].

The main objectives of the CMP are to ensure that there is a clear understanding of the roles
andresponsibilities of the Company and contractor.

GOVERNANCE STRUCTURE
[Describe the governance structure relevant to the contract. Where possible include a diagram
showingthe key parties, the hierarchy, lines of reporting etc.]
 Commercial Management Plan

KEY CONTACTS, ROLES,AND RESPONSIBILITIES

Contact Information
Organization Name and Title Roles and Responsibilities
(email, tel, address)

COMMUNICATION AND REPORTING PROCEDURE

Communication Procedures
Communication Objective Format Frequency Audience Owner
Type

Contractual Notices

Descriptions Objective Contract Frequency/ From to

Reference Timing

Contractor’s documents

Descriptions Objective Contract

Reference
 Commercial Management Plan

Reporting Requirement and Procedure

No. Contract Due date/ Recipients Responsibilities Required

Ref. Clause frequency Action
[Progress [Monthly]
Report]
[ESHS [Monthly]
Progress
reports]
[ESHS [immediately
immediate after
reports] occurrence of
event
Test results

KEY CONTRACTUAL PROVISIONS

No. Description Contract Responsible Remark Risks
reference
1. Care and Supply of Employer 2 copies issued to
Documents contractor
2. Delayed Drawings or Employer Time extension
Instructions cost
compensation
3. Right of Access to Employer Give right of access
the Site within time stated
in data sheet.
4.
 Commercial Management Plan

CONTRACTUAL MILESTONES AND DELIVERABLES

Activity / Contract
Responsible Start date End date Remark
Milestone Reference
Submit work Contractor
schedule
Foundation Contractor Critical path
work for
section…
Complete Contractor
structure for …
testing for
…

KEY PERFORMANCE INDICATORS (to MEASURE PERFORMANCE AND OUTCOMES)

No. Deliverable KPI Performance Test Verification Remark
target
1.
2.
3.

UNDERPERFORMANCE/DEFAULT CONTRACTUAL ACTIONS

No. Description of underperformance Responsible Applicable Actions to Remark
contractual be taken
provision/s
1.
2.
3.

CHANGE MANAGEMENT PROCESS

No. Change Type of change Responsible Required Review/ Contract Status
initiated Action Approval Amendment
by Process Requirement
1. Employer Change in Employer Inform
authority of the Contractor
Engineer of any
change
2. Employer Change in scope Engineer
of work
3.
 Commercial Management Plan
INSURANCE
Contract Amount / Information
Required
No Type of Insurance Ref. Limit of Expiry date Required
Date
liability
1.

2.

GUARANTEES AND SECURITIES

Contract Amount / Information
Type of Guarantee / Required Expiry
No Ref. Limit of Required
Security Date date
liability
1. [Advance Payment
Guarantee]
2. [Performance Security]
3. [ESHS Performance
Security]
4. [Retention Guarantee]

PAYMENT PLAN /PROCEDURES

No. Type of When / Documents Process Verification Approvals
Payment frequency Required time process
1. Advance Once Advance
payment payment
Guarantee
2. Interim Every month Interim payment
payments certificates,
timesheets, proof
of incurred
expenditure,
shipping
documents etc.
3. Interest Delayed
payments payments
4. Price -
adjustment
5. Claims/ As needed Contractors
Compensation
6. Final Payment
 Commercial Management Plan

RECORDS MANAGMENT
No. Type of Record Owner Responsible Action required Remark
1. [Contract
documents and
any
amendments/]
2. Insurance details
3. [change orders]
4. [notices]
5. [Payment
Documents,
including
documents on
application of
price adjustment
if any]
6. Minutes of
contract related
meetings
7. [Progress
Reports]
8. [immediate
Reports on ESHS,
if applicable]
9. [Test Results]
10. [Guarantees,
warranty/defect
liability and
Securities]
11. Documents
related to any
suspension or
termination
 Commercial Management Plan

KEY STAKEHOLDERS ENGAGEMENT PLAN

No. Stakeholder Format Frequency Remark
1.
2.
3.

CONTRACT CLOSURE PROCEDURES

No. Activity Responsible Remark
1.
2.
3.

PRICE ADJUSTMENT PROCEDURES

No. Activity Responsible Remark
1.
2.
3.

INTERFACE MANAGEMENT
No. Activity Responsible Remark
1.
2.
3.