CETM 10

COMMERCIAL AND CONTRACT MANAGEMENT IN

THE UK’S IT INDUSTRY

Student Name: Amir Ali

Student ID: 219441515
Module Leader: Mr. Pavan Thealla
Module Teacher: Ms Atonye Endeley
Table of Contents
Introduction
The administration of contracts with clients, partners, suppliers, or workers is known as contract
management. The process of managing contracts, deliverables, deadlines, contract terms, and
conditions while assuring client satisfaction is known as contract management. Public and
commercial sector organizations in both the public and commercial sectors are aware that
purchasing continues after a contract is issued. Post-award Contract Management that works is
crucial. The practice of maintaining contracts that are created as a part of legal documents for
establishing business ties with clients, suppliers, or even partners is known as contract
management. Negotiating contract terms and conditions is part of contract management. In the
UK's IT (Information Technology) industry, "contract management" is essential. The
"performance analysis" is the substantial activity against contractual management in this process.
The functional and operational performance of an IT organization is greatly improved as a result
of this examination.

An in-depth insight into the commercial and contractual business difficulties faced by UK IT
firms like BJSS will be provided by this study. In this aspect, this assignment will assess a key
grasp of relevant commercial and contractual business concerns related to project management.
This research will look at the capacity to examine and appraise commercial and contractual
concerns associated with project management by using relevant tools, techniques, and
approaches. This assessment will also identify the capacity to construct and generate commercial
and contractual plans using relevant approaches, tools, and procedures.

Critical understanding of appropriate commercial and contractual

business issues related to managing projects
Here are some challenges that the project manager of BJSS may face during working in a
project:

· Goals that are not properly specified and scope adjustments are two difficulties that
project managers face. A manager must be aware of and adept at communicating the project's
objectives. The initiative is destined to fail without a clearly stated aim. Additionally, he
must control project scope creep and work to keep the project from straying from its original
goals. When something occurs, it is crucial to assess it and talk about how it will affect the
budget and delivery dates. A project manager must be ready for any potential issues that may
arise from scope creep and unclear goals.

· A difficult project can need for abilities that nobody on the team possesses. The project
manager will determine whether to add someone who already has the necessary abilities to
complete the job or whether a member will need to be taught for it. Lack of accountability on
the part of the team members, finger-pointing, and blaming each other are other project
management issues related to working in teams. These are all counterproductive and can
completely stall the project.
 · One project management concern the project management concerns that project
managers must address is risk management. Projects frequently don't go according to
schedule. An efficient manager is able to gather data, foster relationships, and foresee which
aspects of the project are most likely to fail. To stop them from happening, he has to create
control mechanisms. There is also a need to have good contingency plans that are
transparent.

· One of the project management issues that often get in the way of managing people is
poor communication. A competent project manager must be able to convey instructions to
team members in a way that ensures their comprehension. Collaboration software and tools
must also be used to ensure everyone is aware of the most recent project developments.

· Project managers need to be aware of what to anticipate from their team members.
Members also need to be aware of what their boss requires of them. The team must talk about
if the resources are enough becausa successful project completion depends on it. There must
be appropriate deadlines. Stakeholders must be included in the project at every stage.

The study would aim to evaluate the commercial and contractual business issues of BJSS, which
is a prominent IT company in the UK. This IT company is one of the prominent software
development companies that has flourished immensely in the UK, in recent years. It is noted that
the company is involved in providing extensive “digital experience”, “cloud services”, and “data
insights” to its clients or customers. In this aspect, it is essential to note that “legal issues”,
“financial issues”, “socio-cultural issues”, and “procurement issues” were common in this
regard. Therefore, the IT companies like “BJSS” generally experience such issues in the UK
environment due to inadequate planning and techniques to evade the risks. Thus, the identified
issues are briefly discussed in the following portion.

Legal Concerns

Due to legal rules and restrictions in the UK, the IT sector is currently experiencing its worst
problem. It is important to remember that the "Freedom of Information Act of 2000" established
British residents' access rights to critical information kept by public agencies (Safarov, 2019). It
is a parliamentary statute that was created to provide free information to the general public that
was kept by public institutions like the police and municipal governments. It was intended to
stop the spread of corruption in public office. This law gives the transactions made via electronic
data interchange, other electronic methods of communication, or electronic commerce legal
status. In order to make it easier for papers to be filed electronically with government
organizations, this also entails using alternatives to paper-based communication and information
storage methods. For the people being governed, the goal of freedom of information legislation is
often to make government decisions and activities more transparent.

It is unclear why the question seems to indicate that freedom of information clashes with a
citizen's right to be protected against privacy breaches when privacy invasions often affect
people rather than governments.

Additionally, the "General Data Protection Act (GDPR), 2018" helps to limit how "personal
information" is used by people, businesses, and the government (Gov.uk, 2019). The General
Data Protection Regulation (GDPR) outlines the standards that businesses must follow in order
to safeguard the personal information of EU residents. The law becomes effective on May 25,
2018. No matter where they are located or how they handle personal data, all companies that
serve European citizens must comply with the rule. The following major guidelines must be
followed in order to comply with GDPR:

1. Obtaining the user's permission to use their data and explaining to them how they intend
to utilize it.

2. ensuring the security of user data

3. Keeping people updated in the event of a data breach

4. By making the user's obtained data anonymous, you may maintain their privacy.

5. Respond to the user's requests for data rights within 30 days.

The entire point of GDPR is to provide users with information transparency and to establish data
privacy requirements for businesses.

The GDPR is a framework designed by the European Union (EU) to govern how businesses
collect, manage, and protect EU individuals' personal data. On May 25, 2018, the GDPR became
a legally enforceable rule, and it is now immediately incorporated into the legislation of Member
States. It strives to improve privacy rights by giving data subjects control over how their personal
data is gathered, utilized, and shared.

GDPR compliance, in its most basic form, refers to a company's capacity to manage personal
data in line with the General Data Protection Regulation's (GDPR) stated criteria.

If a business processes the personal data of EU citizens, whether or not its headquarters are in the
EU, it must abide by the rule. Personal data is anything that may be used to directly or indirectly
identify an individual, such as their name, email address, or IP address. The ramifications of
breaking GDPR can cost a company severely and damage its brand. Therefore, it is essential for
businesses to confirm they are following the requirements of the regulations.

Financial Issues

It has been noticed that IT organizations have financial challenges while taking on customer
contracts. It is crucial to keep in mind that HTC Global Services Inc. must get sufficient financial
resources during contract formation in this situation (Al Breiki and Nobanee, 2019). There are
typically two sorts of contract formation in this situation. According to Noor et al. (2019), one is
a "valid contract" while the other is "void or no contract." The "enforceable contract," "voidable
contract," and "unenforceable contract" are three subcategories of the "valid contract." The void
contract may give rise to financial problems, which may then develop into significant legal
problems in the UK corporate climate. Furthermore, the budget is uncertain due to factors like
time constraints and design changes, which could cause the actual budget to go over its allotted
amount. Additionally, the project's funding is implied to come from both the public and private
sectors, making it a major concern for all parties involved in order to guarantee that the project is
completed within the allotted budget.

Figure 1: Valid contract and void contract

(Source: Lecture Notes)

The classification of contract management for IT organizations like HTC Global Services Inc. is
clearly shown in the above graphic. It is also important to keep in mind that poor financial
planning might make project management difficult. Therefore, in the area of commercial and
contractual management, financial issues are prevalent in the IT sectors.

Evaluation and assessment of commercial and contractual issues

related to the project management utilising various techniques and
methods
Identifying, assessing, and managing risks connected to contracts, pricing, and project execution
are all part of the evaluation and assessment of commercial and contractual concerns of the BJSS
IT organisation (Landoll, 2021). More over , This procedure is essential to making sure that
projects are finished on schedule, on budget, and with the expected results.on other hand Some
strategies and techniques that are frequently employed in this process are the ones listed below:

Contract review: Examining the contract in detail, taking into account the task scope,
deliverables, deadlines, and cost, is the first step in evaluating commercial and contractual issues
for the BJSS IT company. The contract's possible risks and concerns, such as ambiguous or
unclear obligations, are identified through this analysis.In order to make sure that a contract's
terms and conditions are complete, comprehensible, and enforceable, it is necessary to examine it
(Lee, Yi and Son, 2019). The goal of contract review is to find any potential problems, hazards,
or ambiguities with the contract and make sure that it appropriately reflects the terms and
circumstances that were agreed upon.The BJSS IT company begins the contract review process
by gathering all pertinent contract-related papers, including the proposal, statement of work, and
any revisions or addenda (Lee, Yi and Son, 2019). The contract and other ancillary documents
are examined to guarantee their accuracy and completeness.

Risk assessment: Following a review of the contract, BJSS IT business will undertake a risk
assessment. Finding potential project risks like cost overruns, delays, or quality problems is
necessary to do this. Numerous techniques, such as brainstorming sessions, probability analysis,
and risk mapping, can be used to conduct risk analysis.Identifying potential hazards connected to
the contractor BJSS IT company is the first step in the risk analysis process (Matsusaka, Ozbas
and Yi, 2018). Risks associated with scope, quality, deadlines, cost, or regulatory compliance
may be included. Reviewing the contract and any related documentation, as well as talking to the
appropriate parties, may be helpful in identifying risks.Assessing each risk's possibility and
impact comes next after prospective threats have been identified. This entails determining the
likelihood that the risk will materialise as well as any potential negative effects (Namugenyi, et
al 2019). Risks that are likely to occur and have the potential to have serious negative effects are
often given high priority and necessitate extra care.

Contract negotiation: Negotiating the terms of the contract is the next step after recognising
potential risks in order to reduce them. This can entail negotiating the cost, the schedule, or the
range of the task. Strong communication and negotiation skills, as well as a comprehensive
knowledge of the project's requirements and dangers, are necessary for successful
negotiation.Finding the points of contention between the parties and BJSS IT firm is the first
stage in contract negotiation. This could entail going over the agreement and any accompanying
paperwork, as well as talking with the other side about any problems or concerns (Ostrom and
Wilhelmsen, 2019).The parties collaborate to come up with alternative solutions after identifying
the areas of contention. This can entail suggesting different contract clauses, changing the
project's scope of work, or altering the schedule.The parties negotiate the contract conditions to
be finalised after discussing various solutions. This could entail presenting counteroffers,
recommending concessions, or consenting to particular BJSS IT firm terms and conditions.The
parties formalise their agreement in writing after reaching an agreement on the contract's terms
(Ostrom and Wilhelmsen, 2019). This can entail creating a new contract or changing the one that
already exists. It is critical to confirm that the contract accurately represents the terms and
conditions reached and that both parties are aware of their respective obligations.

Project monitoring: After the contract is signed, it is crucial for BJSS IT firm to keep a tight
eye on the project to make sure it is moving forward as intended (Ostrom and Wilhelmsen,
2019b). This entails monitoring project milestones, controlling project risks, and spotting and
fixing problems as they appear.
Contract management: Effective contract management is necessary to make sure that the
project is carried out in compliance with the conditions of the agreement. This entails keeping an
eye on vendor performance, handling change requests, and making sure that everyone is abiding
by the terms of the contracts.
Overall, technical, analytical, and communication abilities are needed for the examination and
appraisal of commercial and contractual issues associated to project management. Businesses
like BJSS may make sure that projects are finished properly and in accordance with the
anticipated results by utilising a variety of tactics and approaches.

Application of techniques and methods that help in producing

effective commercial and contractual plans

There are many different tactics and procedures that can be used to create efficient commercial
and contractual plans for the UK-based BJSS IT company. A few of these are:
SWOT analysis: Analysing the project's strengths, weaknesses, opportunities, and threats is
known as a SWOT analysis. The organisation can identify potential risks and opportunities by
performing a SWOT analysis, and then build plans to reduce risks and take advantage of
opportunities.The strengths of BJSS could include their knowledge of IT and project
management, their track record of providing high-quality services, and their solid customer
relationships (Puyt et al., 2020).Their ability to effectively compete in the market may be
hampered by weaknesses such as a lack of resources or experience in certain fields, such as
emerging technologies or particular industries.Opportunities could be new commercial
opportunities in developing industries or technologies, as well as potential alliances or
partnerships that could increase BJSS's capabilities and services.Threats could include
heightened rivalry between IT firms, modifications to legal or regulatory requirements, economic
downturns, or market variations that could affect how much demand there is for BJSS's services.
Risk management entails determining potential risks connected to the project and creating plans
to reduce such risks (Zou et al., 2019). This can entail creating backup plans, setting risk
ceilings, and routinely reviewing and revising risk management strategies.
Stakeholder analysis: Stakeholder analysis is identifying the most important parties involved in
the project and examining their expectations and motivations. The organisation may create
efficient engagement and communication strategies to make sure that everyone is on the same
page and working towards shared objectives by first understanding the needs and expectations of
stakeholders.Identification of the people or groups with an interest in the project and examination
of their requirements, interests, and expectations are both parts of the stakeholder analysis
process (Rashid Issa, 2019). Stakeholders in the context of BJSS may include customers, staff
members, shareholders, suppliers, and regulators. BJSS can identify potential conflicts and
chances for cooperation by performing a stakeholder analysis (Zheng et al., 2020). They can also
create efficient engagement and communication strategies to make sure that all stakeholders are
on the same page and pursuing the same objectives.
For instance, BJSS might perform a stakeholder analysis for a particular project to identify the
important stakeholders and their interests. On other hand ,BJSS can use stakeholder analysis to
prioritise resources and make defensible choices regarding project scope, cost, and resource
allocation (Rizki et al., 2021). Moreover , BJSS can provide extra resources to make sure that a
demand is met if the stakeholder analysis finds that the customer has a specific requirement that
is crucial to their satisfaction.
Cost-benefit analysis: This can assist the business in making defensible choices regarding
project scope, cost, and resource allocation.Cost-benefit analysis is a technique for assessing the
costs and advantages of a specific project, investment, or choice. On the other side Cost-benefit
analysis can be used in the context of BJSS to assess if the advantages of a specific project or
investment outweigh the costs (Rizki et al., 2021). BJSS would first list all expenditures related
to the project, such as resources, materials, and other charges, before performing a cost-benefit
analysis. BJSS would next make an estimate of the project's prospective advantages, such as
potential increases in revenue, efficiency, or reputation.
Project management approaches: To efficiently manage the project and make sure that all
needs are met within the designated timescales, BJSS can make use of different project
management methodologies, such as Agile, Scrum, or Waterfall. On the other side BJSS can
create efficient commercial and contractual plans that meet the needs and expectations of the
project by using these strategies and procedures (Tosselli, Bogado and Martínez, 2020).
Moreover , This can assist the business in risk management, project outcome improvement, and
stakeholder satisfaction assurance.

Conclusion
It is obvious that creating practical commercial and contractual plans for the UK-based BJSS IT
company involves a deep understanding of numerous approaches and procedures. These consist
of cost-benefit analysis, stakeholder analysis, SWOT analysis, risk analysis, contract negotiation,
and contract review. BJSS may create commercial and contractual plans that are in line with the
company's strengths, opportunities, and stakeholder needs while reducing risks and correcting
weaknesses by using these strategies and procedures. On the other hand, These strategies can
assist BJSS in securing new business prospects, increasing their capabilities, and remaining
competitive in the IT sector.
In the end , for BJSS to be successful in the IT sector, efficient commercial and contractual
planning is crucial. BJSS may create strategies that are financially sustainable, in line with their
strengths and stakeholder needs, and intended to reduce risks by using the right techniques and
processes. This will assist BJSS in preserving its solid reputation for offering clients in the UK
and beyond high-quality services and solutions.
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