Strengthening commercial agreements

Overview

GCM’s client – a concrete repair specialist – asked for support with reviewing and negotiating the terms of their contracts. During this process, GCM identified that the business had been entering into contracts without fully understanding the implications of certain terms and conditions, exposing them to potentially serious commercial and legal risks. 

With GCM’s guidance, our client mitigated substantial contract risks, removed £10,000-per-week penalty clauses and significantly improved the strength of the company’s commercial agreements.

 


 

 

The client


Our client specialises in concrete repairs, waterproofing works and resin-bound flooring. With extensive experience on largescale commercial projects across the UK, the company is known for its technical delivery and specialist expertise. 

 


 

The challenge

Our client had previously encountered challenges due to misunderstandings about the contractual obligations embedded in their subcontracts. As a result, they were unknowingly accepting terms that posed significant financial liabilities, including the risk of substantial penalties and delayed payments. 

Recognising the need for expert commercial support, the leadership team asked GCM to help reduce their contractual exposure and ensure that all future agreements were correctly reviewed and negotiated. 

 


 

Our approach

GCM recommended taking full responsibility for the review and negotiation of subcontracts moving forward. We introduced a structured contract review process, including: 

  • A traffic light system to flag high-risk clauses and provide clear recommendations for amendment or negotiation 
  • Collaboration with our client’s leadership team to agree on contract changes 
  • Formal submission of comments to the main contractor, along with support during negotiation of revised terms 

This hands-on, proactive approach ensured that no contract would be signed without a thorough risk assessment and clear commercial protections. 

 


 

The result

As a direct result of one reviewed contract, our client avoided significant commercial risk and negotiated more favourable terms. Results included: 

  • £10,000 per week in Liquidated and Ascertained Damages (LADs) were removed from the agreement 
  • Project programme adjustment to reflect a more realistic delivery schedule 
  • Revised retention release dates to ensure timely payment 
  • Shortened payment terms (28 to 21 days) to improve cash flow 

 

Thanks to GCM’s involvement, our client now has far greater visibility over the contracts they sign, with new controls in place to protect margin, reduce risk and support stronger commercial opportunities across all future projects. 

Share this project

Need advice?

To learn how we can support your construction business, speak to a member of our team.