Example Commercial Risk Review (Abbreviated)
These examples are intentionally abbreviated.
They illustrate how we apply commercial judgment during the bid window—what is elevated, how clarifications are framed for owner acceptance, and how residual risk is positioned for pricing and execution.
Actual engagements result in a detailed, bid-specific commercial risk review tailored to the contract, scope, and bid context.
Example Commercial Risk Review — Change Management
Risk area
Change Management
Clause context
The contract imposed strict notice requirements and narrow valuation mechanics for changes, granting the owner broad discretion over entitlement and pricing once work was underway.
Why it mattered commercially
The clause materially affected margin protection and execution leverage by shifting change entitlement and valuation discretion to the owner post-award. Left unaddressed, it increased the likelihood of under-recovery during execution and constrained the contractor’s ability to manage changes from a position of strength.
How it was handled
This risk was addressed through Selective Elevation™.
Clarification language was framed to preserve owner flexibility while establishing clearer entitlement mechanics and valuation pathways workable during execution.
The clarification focused on alignment rather than entitlement expansion—improving acceptance likelihood while strengthening the contractor’s commercial position.
Execution guidance (residual risk)
Residual risk was carried deliberately and actively managed through execution. Pricing assumptions reflected tighter change recovery expectations, and internal guidance emphasized early notice triggers and documentation discipline as critical post-award controls.
Example Commercial Risk Review — Backcharge Exposure
Risk area
Backcharges and chargeable work
Clause context
The contract allowed the owner to backcharge the contractor for perceived productivity losses, access constraints, and rework, with broad discretion over causation and valuation.
Why it mattered commercially
While not decision-critical at submission, the clause created execution risk by exposing margin to subjective backcharges during the work.
How it was handled
This risk was not elevated.
Based on bid context and acceptance dynamics, clarification was unlikely to improve alignment and carried unnecessary signaling risk.
The risk was positioned for internal management.
Execution guidance (residual risk)
Residual exposure was actively managed through internal controls:
• Defined authorization thresholds
• Daily documentation discipline
• 48-hour internal review workflow
• Prompt dispute notices
Request a generalized excerpt of an actual EAG commercial risk report
Generalized for confidentiality. Illustrative of structure and judgment.
Examples are abbreviated and illustrative. Specific risk treatment depends on the contract, bid context, and owner terms.