Strengthen the operational and commercial discipline of contractors

The Businessplan Consult/SJM Consulting and Enterprise Program

Introduction

In many industries, contractors excel in technical execution but struggle with the commercial and operational discipline required to consistently deliver projects on time, on budget, and without disputes. While they often possess strong technical expertise, they frequently lack the structured systems to translate contractual obligations into daily operational routines.

This gap between contractual commitments and operational behaviour leads to late deliverables, payment delays, scope creep, quality defects, and conflict with clients. Strengthening operational and commercial discipline is therefore essential to building profitable, reliable, and dispute-free contracting businesses. The Businessplan Consult Program/SJM directly addresses this challenge by helping contractors treat their contracts as living operational manuals. This approach aligns project delivery with contractual commitments and transforms operational performance.

Purpose and Objectives

The purpose of strengthening operational and commercial discipline is to make the contract the central control system for project delivery. Instead of being a static legal document referenced only during disputes, the contract becomes an active operational guide that drives daily decisions, reporting, and behaviours on site.

The key objectives are to:

• Translate contract obligations into operational routines and KPIs

• Embed disciplined communication, reporting and escalation

• Strengthen scope control and variation management

• Ensure compliance with client procedures and systems

• Improve quality assurance and evidence capture

• Instil proactive planning, risk control and dispute management

This structured approach shifts contractors from reactive firefighting to proactive contract-led execution.

Delivery Approach

Strengthening operational and commercial discipline requires more than classroom training — it requires guided, practical implementation.

The Businessplan Consult/SJM Program uses a highly interactive workshop methodology that blends:

• Interactive presentations explaining key operational principles

• Group discussions and case studies illustrating real-world pitfalls

• Step-by-step guided exercises that show how to build each system from contract clauses

• Role plays and scenario simulations to practise communication, negotiation, and conflict resolution

• Templates, checklists, and registers that participants customise for their own projects

• Real-time development of each participant’s Contract Operations Manual (COM) to consolidate all tools in one working document

This approach ensures that every concept taught is immediately translated into practical, usable systems that can be deployed on site.

Key Focus Areas

1. Working with KPIs

Contractors often fail to extract measurable performance obligations from their contracts. The program teaches how to:

• Identify KPIs, service levels, and acceptance criteria from contract clauses

• Break down obligations into operational tasks with owners and timelines

• Use a simple contract map linking obligations to workflows and documents

• Monitor and review progress using KPI scorecards

Impact: Clear performance visibility, early detection of underperformance, and evidence for client reporting.

2. Communication Discipline

Unstructured, unclear communication causes disputes and delays. The program helps contractors:

• Build stakeholder maps with clear decision rights

• Standardise all correspondence using templates with clause references

• Establish daily, weekly and monthly communication rhythms

• Set escalation protocols with defined timelines and responsibilities

• Track all communication using a communications register

Impact: Improved clarity, faster decisions, traceable correspondence, and fewer misunderstandings.

3. Scope Management

Scope creep erodes margins and delays payment. The program equips contractors to:

• Create a one-page “scope on a page” to clarify inclusions and exclusions

• Use a triage process to separate in-scope tasks from variations

• Implement a variation approval process with documented costs and timelines

• Secure client sign-offs using acceptance checklists

Impact: Better scope control, protected margins, faster approvals, and fewer unpaid extras.

4. Client Procedures and Policies

Failure to follow client systems leads to rejections and payment delays. The program shows how to:

• Build a simple client playbook covering portals, formats, and approval flows

• Maintain a cutoff calendar with submission and approval deadlines

• Use billing pack checklists before submitting invoices

• Record and address rejection reasons to prevent recurrence

Impact: Fewer submission errors, faster approvals, and improved cash flow predictability.

5. Contractual Diplomacy

Contractors often give in too easily during negotiations, damaging their commercial position. The program builds confidence to:

• Role-play difficult conversations using contract clauses and evidence

• Balance relationship management with enforcing contract rights

• Prepare clear negotiation positions with non-negotiables and flex points

• Use data to depersonalise discussions and protect rates and terms

• Practise assertive yet professional ways to say “no”

• Establish escalation scripts to keep discussions objective

Impact: Stronger commercial outcomes without damaging relationships.

6. Quality Control

Quality is often left to individual effort rather than systemised processes. The program helps to:

• Develop inspection and test plans linked to acceptance criteria

• Conduct layered audits across levels of management

• Involve end users in approval points for accountability

• Create standardised photo logs for evidence

• Use root-cause analysis to prevent recurring issues

• Compile monthly quality packs as part of KPI reporting

Impact: Consistent quality, robust evidence, and improved client trust.

7. Conflict Management

Disputes are often handled informally, resulting in losses. The program instils discipline to:

• Spot early warning signs of conflict

• Prepare position briefs with facts, contract references, and impacts

• Apply structured negotiation techniques

• Follow a clear resolution framework for escalation and disputes

• Communicate assertively while protecting relationships

Impact: Faster dispute resolution, reduced risk of claims, and preserved client relationships.

Implementation Outcomes

By strengthening operational and commercial discipline, contractors move from being reactive and fragmented to structured, disciplined, and client-trusted.

After completing this process, contractors will:

• Operate from a contract-driven operational manual

• Monitor performance using objective KPIs and scorecards

• Communicate clearly, consistently, and traceably

• Protect their margins through strict scope and variation control

• Align with client systems and reporting requirements

• Improve quality outcomes and evidence gathering

• Resolve disputes quickly and professionally using structured frameworks

The result is improved compliance, stronger cash positions, and significantly reduced disputes — all of which lead to more profitable, sustainable contracting businesses.