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Commercial Management


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Table of Contents

About the Author vii About the Contributors viii Acknowledgements x Preface xii Abbreviations xiv Part 1: Introduction 1 Introduction: Commercial Management 3 1. Commercial Management in Project-Oriented Organisations 23 Part 2: Elements of Commercial Practice and Theory 77 2. Commercial Leadership 79 Maria-Christina Stafylarakis 3. Exploring Strategy 96 Irene Roele 4. Perspectives on Managing Risk and Uncertainty 108 Eunice Maytorena 5. Financial Decisions 132 Anne Stafford 6. L egal Issues in Contracting 173 David Lowe and Edward Davies Part 3: Approaches to Commercial Practice 237 7. Best-Practice Management 239 8. Commercial Strategies and Tactics 288 Part A: Intent 296 Part B: Deal Creation 332 Part C: Execution 359 Part 4: Case Studies 379 Case Study A: Football Stadia 381 Case Study B: Terminal 5 (T5) Heathrow 455 Index 492

About the Author

Dr David Lowe, Manchester Business School David Lowe is a Senior Lecturer in Commercial Management and Head of the Project and Programme Management Affinity Group in the Innovation, Policy and Management division of MBS. He is Programme Director for the blended learning MSc in International Commercial and Contract Management and several Executive Education programmes in commercial and contract management. Clients include Rolls Royce, BAE Systems, Thales, BT, the National Skills Academy Nuclear, and the Foundation Trust Network (NHS). David is a Fellow of the Royal Institute of Chartered Surveyors, a Fellow of the Higher Education Academy and an academic advisor of the International Association for Contract and Commercial Management (IACCM). His consultancy work includes benchmarking the engineering and project management provision of an international pharmaceutical company. His teaching interests include: commercial management, commercial strategies and tactics, and contract management. Similarly his research interests focus on commercial and contract management within the context of project-based industries, ranging from ICT/telecommunications to aerospace and defence. Completed research projects include: an investigation of the cost of different procurement systems and the development of a predictive model; a project to assist medium sized construction companies develop strategic partnerships and diversify into new business opportunities offered by public and private sector clients; and an investigation into the function of commercial management in the telecommunications and construction industries. His PhD, completed at UMIST, investigated the development of professional expertise through experiential learning. His book contributions include: Contract Management, in The Wiley Guide to Managing Projects (Wiley, 2004), and Commercial Management of Projects: Defining the Discipline (Blackwell Publishing, 2006) which he edited with Roine Leiringer. The latter is the first book to establish a theoretical framework for commercial management.


The book provides a one-stop-shop to the many topics thatunderpin commercial management practice from both a demand(buy-side) and a supply (sell-side) perspective. It will helpdevelop an understanding of the issues influencing commercialmanagement: leadership, strategy, risk, financial, legal, bestpractice management and commercial and contracting strategy andtactics. ( Construction Management andEconomics , 3 June 2014) I highly recommend the excellent and all inclusive ideafilled book CommercialManagement: Theory and Practice by David Lewis, to any studentsat the graduate or undergraduate levels in management, commercialmanagement, project management, educators in academia, professionalcommercial and project managers, business leaders, public policyanalysts and anyone else interested in the theory and practice ofcommercial management. This book covers all of the relevant areascompletely and authoritatively. ( Blog Business World, 20 August 2013)

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