Summary

Deecon were engaged to carry out a suite of commercial activities to support with establishing a standalone commercial function (previously part of the procurement workstream) and fortifying downstream NEC4 contracts with suppliers.

The Requirement

Deecon were engaged by GoFibre to support with the establishment of a standalone commercial function and fortification of downstream NEC4 contracts with suppliers.

The Solution

The engagement was split into four distinct tranches of work:

NEC4 Options Analysis: Deecon assessed GoFibre’s desired critical success factors (e.g. cost flexibility and ease of administration) for their subcontracts and conducted research into contract trends within the telecommunications sector, to advise GoFibre on which NEC4 commercial options to utilise.
NEC4 Contract Review: Deecon implemented a Red, Amber, Green (RAG) system to categorise clauses into ‘Vital to know / Key Responsibility’, ‘Useful to know / Potential to arise in-life’ and ‘NEC4 Standard’. This enabled us to prioritise sections and provide actionable, relevant feedback.
Rate Card Analysis: GoFibre had synthesised target rates via a cost modelling exercise. We utilised our bank of rate card data to assess the accuracy of the target rates, applying indexation where appropriate to ensure Deecon comparison rates were up-to-date and reflected rural builds.
Commercial Function Positioning Analysis: Deecon highlighted the pros and cons of outsourcing and insourcing the commercial function and assessed the benefits and drawbacks of integrating commercial into other departments. We utilised prior experience in the sector and open-source research to provide a balanced view to the client.

The Results

GoFibre decided to utilise a mix of Option A and Option C to align with trends that Deecon identified within the telco sector
Deecon’s contract feedback was actioned by GoFibre to reinforce their contractual position
Deecon’s analysis showed that 66% of GoFibre’s modelled rates fell within 10% of comparator rates (exceeding the 50% threshold that constitutes a ‘high-level of accuracy’)
Detailed ‘commercial function positioning’ report presented to senior stakeholders to inform decision-making