Commercial Mobilisation

Section 1

Purpose

Note on JCT editions: JCT has published the 2024 Edition. This guidance cites JCT SBC/Q 2016 clause references; the commercial and payment mechanisms are substantively unchanged in the 2024 edition, but specific clause references should be verified against the contract edition in use on any given project.

Commercial mobilisation is the process of establishing all the systems, procedures and agreements necessary to manage the contract commercially from the first day on site. It bridges Stage 4 (Technical Design and Procurement) and Stage 5 (Construction and Post-Contract Administration): the pre-start meeting is the formal handover point at which the QS confirms that all commercial framework documents are in place, that the contractor understands the payment, variation and reporting obligations under the contract, and that the QS's own post-contract procedures are ready to operate.

RICS Tendering Strategies (2015) and the RICS Role of the Commercial Manager (2017) both confirm that the commercial mobilisation phase — however compressed — is a critical quality gate. A poorly run mobilisation produces ambiguity about programme, sub-contract arrangements, reporting obligations and payment procedures, which consistently generates disputes in the early months of construction.

The pre-start meeting agenda should be agreed by the QS and circulated to the contractor at least one week in advance. The meeting must be minuted, with actions and responsible parties clearly identified. Key commercial outputs from the pre-start meeting include: confirmed contract sum; confirmed possession date; confirmed master programme submission deadline; confirmed sub-contractor approval procedure; confirmed payment application cycle; and confirmed variation instruction procedure.

Section 2

Key Principles

RICS Tendering Strategies (1st edition, 2015), Section 4.6 — Design-Checking Periods and Section 4.7 — The Route from Tender to Contract: the period between contract execution and site possession should be used to resolve outstanding technical issues and establish commercial procedures.
JCT SBC/Q 2016, Clause 2.9 — Master Programme: the contractor must provide a master programme within a period (stated in the Contract Particulars) of the contract execution date. The programme is information — not a contract document — but is essential for QS interim valuation, extension of time assessment and cash flow monitoring.
Housing Grants, Construction and Regeneration Act 1996 (as amended): payment provisions — including the payment due date, final date for payment, pay less notices, and suspension rights — must be understood and implemented by the QS from the first interim application.
Construction (Design and Management) Regulations 2015 — Construction Phase Plan: the contractor (Principal Contractor) must prepare and maintain a Construction Phase Plan before the construction phase commences; the QS should confirm at the pre-start meeting that this obligation is understood.
RICS Cash Flow Forecasting (2nd edition, 2024): the Stage 5 cash flow is based on the contractor's accepted programme; the pre-start meeting confirms the programme assumptions on which the updated forecast is based.

Section 3

Practical Application

Step 1

Prepare the pre-start meeting agenda at least one week before the meeting. Circulate to the contractor, employer, design team and CDM Principal Designer. Standard agenda items: contract sum confirmation; possession date; master programme (submission deadline and format); sub-contractor approval procedure; payment application cycle and valuation dates; variation instruction procedure; site communication protocols; change control register setup; CDM Construction Phase Plan confirmation; and insurance/bond confirmation.

Step 2

Confirm the contract sum: at the pre-start meeting, both parties should confirm the contract sum as stated in the executed contract documents. If a post-tender negotiation schedule was agreed, confirm that it is incorporated. Confirm the contract base date for inflation purposes.

Step 3

Confirm the payment cycle: agree the valuation dates for interim applications (typically the last Wednesday of each month, or as stated in the Contract Particulars); confirm the certification period (typically 5 days from valuation date under JCT SBC/Q); confirm the final date for payment (typically 14 days from the date of the interim certificate). Document these dates in the meeting minutes.

Step 4

Establish the variation instruction procedure: confirm how instructions will be issued (Contract Administrator's instructions in writing; email where permitted by the contract); confirm the QS's role in assessing variation costs; confirm the procedure for contractor's quotations (JCT SBC/Q Schedule 2 quotation procedure); confirm the change control register format.

Step 5

Establish the sub-contractor approval procedure: under most JCT contracts, the contractor requires the employer's consent to sub-contract the works (JCT SBC/Q Clause 3.7). Agree the approval process and documentation requirements. Confirm any named or nominated sub-contractors specified in the contract.

Step 6

Confirm the master programme requirements: the contractor must submit a programme showing the sequence, method and duration of all works. Confirm the format (Gantt/Primavera/MS Project); the level of detail required (activity-level or section-level); and the deadline for initial submission (typically within two weeks of site possession).

Step 7

Confirm the CDM obligations: the contractor must have appointed a competent Construction Phase Plan coordinator; the CPP must be in place before any construction work commences; welfare facilities must be established on day one. The QS confirms these are understood — the QS is not responsible for CDM compliance but should flag non-compliance as a risk.

Step 8

Distribute the pre-start meeting minutes within 48 hours. Circulate to all attendees for confirmation. Set a review date for outstanding actions. File the minutes in the project commercial file as the opening document for the Stage 5 contract administration records.

Step 9

Identify and issue any outstanding design information the contractor needs for early works. Drawings, specifications or technical queries left open at contract execution must be resolved or issued before the contractor loses momentum on site — unresolved design information is the most common cause of early-contract delay and loss-and-expense claims.

Section 4

Common Mistakes to Avoid

Not preparing a formal agenda for the pre-start meeting — an informal meeting without a structured agenda produces incomplete minutes and leaves key commercial procedures undefined.
Failing to confirm the payment cycle dates in writing at the pre-start meeting — ambiguous payment dates generate disputes about the due date, final date for payment, and the validity of pay less notices from the first application.
Allowing the contractor to commence works without the Construction Phase Plan in place — this is a CDM 2015 breach; the employer and Principal Designer share responsibility for ensuring the CPP exists before construction commences.
Not confirming the variation instruction procedure with the contractor before works commence — verbal variation instructions issued without a confirmed procedure create scope disputes from the outset.
Failing to establish the change control register at mobilisation — changes instructed without a register are difficult to track, and the final account will be materially harder to settle if variations have not been contemporaneously recorded.

Section 5

APC Competency & Quick Reference

APC Competencies: Contract Administration (L2) | Cost Management (L2) | Commercial Management (L2) | Legal & Regulatory Compliance (L1)

What are the key commercial outputs required from the pre-start meeting?

Confirmed contract sum; possession date; master programme submission deadline and format; payment application cycle (valuation dates, certification period, final date for payment); variation instruction procedure and change control register setup; sub-contractor approval procedure; CDM Construction Phase Plan confirmation; and insurance/bond confirmation. All outputs must be minuted with named responsibilities and target dates.

What are the HGCRA payment obligations the QS must implement from the first interim application?

The Housing Grants, Construction and Regeneration Act 1996 (as amended 2009) requires: (i) a payment due date (the date the amount becomes due — typically the valuation date); (ii) a final date for payment (the last date the employer must pay — typically 14 days from the interim certificate under JCT); (iii) a payment notice (issued within 5 days of the due date); (iv) a pay less notice (if the employer intends to pay less than the notified sum — must be issued before the final date for payment). Failure to issue a valid pay less notice means the employer must pay the full certified sum.

What is the JCT master programme and what is its contractual status?

Under JCT SBC/Q 2016 Clause 2.9, the contractor must provide a master programme within the period stated in the Contract Particulars after execution. The programme is information — it is not a contract document and does not change the contractor's obligations. However, it is critical for the QS's interim payment assessment, extension of time evaluation, and cash flow forecasting. Changes to the programme should be notified by the contractor and the programme updated accordingly.

Section 6

Commercial Mobilisation Checklist

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Pre-start meeting agenda prepared and circulated at least one week in advance

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Contract sum confirmed by both parties at pre-start meeting

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Payment cycle confirmed in writing (valuation dates, certification period, final date for payment)

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Variation instruction procedure confirmed (written instructions; QS assessment; Schedule 2 quotations)

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Change control register established and format agreed

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Sub-contractor approval procedure confirmed

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Master programme requirements confirmed (format, level of detail, submission deadline)

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CDM Construction Phase Plan confirmed in place before commencement

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Insurance and bond confirmations on file

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Pre-start meeting minutes distributed within 48 hours; filed as opening Stage 5 document

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Outstanding design information identified and issued before works commence

Section 7

CPD Learning Outcomes

Prepare and conduct a pre-start meeting for a building contract, confirming all key commercial procedures (payment cycle, variation instructions, change control, sub-contractor approval, CDM) and producing formal minutes.
Implement the HGCRA payment obligations from the first interim application — payment due dates, certification periods, final dates for payment, and pay less notice procedures — in accordance with the executed contract.
Establish a change control register and variation instruction procedure at commercial mobilisation, and explain the consequences of failing to do so for the manageability of the final account.

Section 8