Why Commercial Models should Not be Underestimated

In preparing a commercial bid, it is critical to give proper consideration to the prescribed commercial model on which the tender is based.

Do not underestimate the importance of this element in your bid/tender. It directly informs the template that is provided for your use in the tender.

The commercial model be different from the pricing structure your products/services are based on. I have seen many contractors adopt a different commercial model from the one specified by the tender with devastating consequences.

It creates misunderstandings with the client, strains the relationship and many a times, the contractor is unable to complete the work at the 'agreed' price.

Many contractors are disqualified due to their singular act of altering the commercial model prescribed by the tender. Unfortunately, they are usually only told '....sorry, your bid was unsuccessful.' And being uninformed, they tend to repeat the same mistake.

How conversant are you with commercial models?

For extensive coverage on Oil & Gas commercial models, join the waiting list for the online course, 'How to Win Oil & Gas Contracts'.

You will learn to distinguish the different commercial models, avoid common costly mistakes and work their hidden nuances for a successful commercial tender.

Join the waiting list for the next stream.