Commercial Project Negotiation: Consolidated Portfolio 1

This portfolio explores the intricacies of commercial project negotiation, encompassing diverse contractual arrangements, stakeholder management, conflict resolution, and the impact of project delays. It delves into the application of logic, persuasion, and influence factors in navigating conflicting agendas, while examining methods for identifying and reconciling inconsistent objectives. The portfolio also analyzes the consequences of project disruptions and explores tools for avoiding or resolving conflicts through negotiated solutions.

PPMP20011 - COMMERCIAL PROJECT NEGOTIATION - CONSOLIDATED
PORTFOLIO
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Table of Contents
Introduction......................................................................................................................................3
Course Learning Outcomes.............................................................................................................4
1. Describe the operation of diverse and complex government and non-government project
contractual arrangements relevant to a range of managed services, ICT, and build agreements.
.....................................................................................................................................................4
2. Analyse common arguments using logic, persuasion and influence factors as commonly
applied to conflicting and/or competing stakeholder agendas.....................................................6
3. Differentiate methods of project negotiation, conflict management, and stakeholder
engagement across projects consisting of differing technology standards and asset lifecycles.. 8
4. Explain and apply methods of identifying and reconciling inconsistent and conflicting
objectives and drivers that develop, maintain, manage relationships and communication with
key stakeholders.........................................................................................................................10
5. Explain the consequences of project delays, disruptions, and changes to planned activities
and the methods for claims variations, liquidated damages, contract entitlements, and
arbitration...................................................................................................................................11
6. Evaluate project management tools that help avoid or provide conflict resolution via
negotiated solutions...................................................................................................................12
Discussion and Conclusion............................................................................................................13
References......................................................................................................................................15
Appendices....................................................................................................................................16
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Introduction
Negotiation is the process through which conflicts and issues in the projects or system are sorted.
Negotiation is aimed at agreeing towards agreements in order to develop understanding and
coordination between the conflicting parties. Negotiation is also undertaken to increase the
integration of the conflicting objectives and aims of the groups or individuals. Negotiation
basically involves two or more parties differing on the ideas and concepts in various aspects.
Projects are a large undertaking and involve diversified activities and processes. It is common to
obverse differences in the parties of a project as various stakeholders are involved in the
processes and functions (Adhau, et. al., 2012). Negotiation is undertaken to safeguard the objects
and interest of the conflicting parties. It can be termed as a settlement for resolving the interest
conflicts, authority conflict, and responsibility conflicts etc. Negotiation is aimed at resolving the
conflicts in which both the parties lose and gain some of the interests and values. The negotiation
entails the characteristics such as involvement of more than one party, development of resolution
and fostering the mutual agreement etc. The decisions undertaken in the process of negotiation
are not legally binding on the parties. A third unbiased individual is appointed in the process to
develop reformative solutions for the conflicts and issues in the projects and its ancillary
processes.
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Course Learning Outcomes
1. Describe the operation of diverse and complex government and non-government project
contractual arrangements relevant to a range of managed services, ICT, and build
agreements.
Introduction
Government or non-government projects include various and diversified activities and tasks in its
orbit. The government undertakings are huge processes and functions carried out in order to
execute the social welfare and social considerations of the society. Government projects require
numerous resources and finances to accomplish the aim and objectives in an effective manner.
Government projects are large undertakings with a greater number of stakeholders and
shareholders. These projects are long termed and include various aspects such as the managerial
services, information and communication technology and build agreements. Government
projects or non-government projects include activities of managing the various services and
processes such as consumer care, stakeholder relationship and investors relations (Binder, 2016).
These services are required to be managed in order to effectively achieve the goals and aims of
the projects. The information and communication technology is also processed in the projects for
effective knowledge and information management or circulation. Projects require these
information and communication technology for increasing the integration of the stakeholders and
the investors in the projects. ITC services include for increasing the focus towards the
communication and integration knowledge between the various project parties and members.
Private projects also require for thee services for the effective and efficient management of
services.
Summary
The projects whether government or non-government are considerate for effective execution of
the project processes. In order to accomplish the quality and safety of project processes, the
project managers include managerial services as resource management, human resource
management, finance management and stakeholder management etc. (Adhau, et. al., 2012). The
managers in both types of projects are required to execute these managerial services as these aids
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in better management and execution of the project processes. The resource management focuses
on the management and availability of the various resources required by the project and its
ancillary processes. The human resource management is also executed for management of the
human resources and the employees, labours working on the projects. Finance management is
another managerial service undertaken to strategies and develop the financial needs and
requirements of the assets rich organizations.
Evidence
By the study of various projects and cases, it has been observed that projects undertaken by the
government and the non-government projects deploy various managerial services, ICT and build
agreements. Build agreements are executed or undertaken in order to manage and organise the
contractual agreements and negotiation in the projects. Build agreements develop for the terms
and conditions of the projects. The projects also foster for negotiation and conflict management
through the build agreements in the government and non-government projects.
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2. Analyse common arguments using logic, persuasion and influence factors as commonly
applied to conflicting and/or competing stakeholder agendas.
Introduction
Various logic, persuasion and influence factors are applied in the projects towards the
stakeholder agendas. Arguments are applied with logic for developing effective and reformative
solutions for the conflicts and issues in the projects. The logics are applied in consideration of
the terms and conditions of the contracts and the arguments. It can also be studied that term for
the contracts and arguments in the projects are devised with the logic. Ethical and moral
considerations are studied for the arguments. The mediator in the process of negotiation creates
opportunities to apply logic and persuasions for resolving the conflicts amongst the stakeholders
(Chow, et. al., 2012). The logic and persuasions are based upon the types of the conflicts and the
interest shred by the conflicting stakeholders. Logic presents for defining an effective solution
for the various conflicts that may arise in the life cycle of the projects. Persuasions are developed
in the direction of the interests and issues of the parties.
Summary
There are several factors that influence the conflicts or issues of the stakeholders. The factors are
inclusive of the attitude, interests, power, and share of finances etc. The factor of power is one of
the most dominant influencing factors in the conflicts and issues of the stakeholders. The factor
of power exercises the most influence as it encompasses an increased source of interest and
orders for the project managers and various teams. Power is exercised by the stakeholders to
predominate the sources of finances, decision making processes, and strategic operations or
functions etc. (Dorochoff, 2016). Other influencing factors include a stake of the interest
exercised by the conflicting stakeholders. The share of interest accommodates for altering and
processing the decision and function of the projects. The share in finances also encompasses the
influencing factor in the projects.
Evidence
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The logic for creating the decisions and processes in the projects are based upon the ethical,
moral and conditions of the projects. The logic in the cases of conflicts and issues in the projects
are undertaken according to the pre-defined terms and conditions of the projects. The logic
considers the ethical considerations to be processed in order to form for resolutions for conflicts
and issues in the projects.
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3. Differentiate methods of project negotiation, conflict management, and stakeholder
engagement across projects consisting of differing technology standards and asset
lifecycles.
Introduction
Different methods of project negotiation, conflict management and stakeholder engagement are
applied in the projects by different technology standards and assets lifecycles. Project negotiation
includes various approaches and techniques such as smoothing, win-lose approaches, and lose
approach etc. In the smoothing approach, the priority of decision making is towards settling the
maximum of interests and benefits of the conflicting stakeholders. In the win-lose approach, the
focus is towards establishing the favour towards one of the conflicting parties by exercising
aggressive negotiation practices and policies (Binder, 2016). The methodologies of project
negotiation also include techniques such as the integration of stakeholders to increase the
efficiency and goal achieving of the projects. It also includes for increasing the communication
and interaction between the projects teams and outsourcing teams for better project performance.
Summary
Conflict management refers to managing the conflicts and issues in the projects when differences
and variations in the project occur. Conflict management enables to develop solutions for
conflicts and differences in the projects by applying various conflict management theories and
techniques for resolving the project conflicts and issues. The technique of collaborating and
compromising is exercised by the conflicting stakeholders in order to develop strategic
resolutions for conflicts and differences of objectives and aims in the projects (Loosemore, et.
al., 2012). Through the application of compromising or collaboration, the project managers are
aided in monitoring the performance of the project and develop reforms for conflict
management. The conflicting parties come together to lose some of the interests and gain access
to some specific areas an objectives of the interests.
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Evidence
The concepts of stakeholder engagement refer to increasing the involvement and integration of
the stakeholders with the project aims and purposes. This is practised in order to increase the
integration of stakeholders in the project which reflects upon the performance and viability of the
projects in the future. The stakeholder engagement also determines for resolving the conflicts
and issues in the projects. Stakeholder engagement also increases the decision making processes
and activities of the projects (Kerzner & Kerzner, 2017). It includes the viewpoints and theories
of the stakeholders and looks into the interests and objectives. Stakeholder engagement enables
to integrate the interest and stake of the holders in the project activities.
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4. Explain and apply methods of identifying and reconciling inconsistent and conflicting
objectives and drivers that develop, maintain, manage relationships and communication
with key stakeholders.
Introduction
It is necessary to identify and reconcile the inconsistent objectives in projects. The project is
diversified and includes various activities in its orbit. The large share of stakeholders and
investors results in differential activities and tasks in the projects. Identification of inconsistent
objectives is required to monitor the cases and problems of conflicts and differences in the
projects. The project manager exercises various techniques and approaches to identify the
inconsistent objectives (Martinsuo, 2013). The stakeholders for the projects can be identified as
the employees, investors, associates, public, manager, and teams etc. To identify the inconsistent
objectives the project manager communicates and organises team meeting to understand the
problems and issues of the project and develop strategies to reconcile the objectives.
Summary
To develop and maintain the relationship and communication with the key stakeholders it is
required to organise regular meetings and agendas. It is necessary for the project managers to
indulge in the meetings and agendas for gaining information and insights into the projects. The
project's managers are required to manage the relationship with the stakeholders to reduce the
possibilities of the conflicts and issues in the project (Pryke & Smyth, 2012). The project
managers are aided in increasing the performance and opportunities for the project by reducing
the situations of inconsistent objectives which mostly leads to project delays and non-
performance.
Evidence
Reconciling the inconsistent objectives can be practised through the policies of effective
communication and flow of information towards the stakeholders. Communication is required to
develop decision and strategic operations in consideration with the interests and objectives of the
project and its stakeholders (Kerzner & Kerzner, 2017). The flow of information towards the
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stakeholders keeps them informed and educated about the changes and alterations in the project
which reduces the chances of conflicts.
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5. Explain the consequences of project delays, disruptions, and changes to planned
activities and the methods for claims variations, liquidated damages, contract entitlements,
and arbitration.
Introduction
Project delays are inevitable occurrences in the projects that are not under the control of the
project teams and managers. Project delays also account for predictions and assumptions may are
interpreted in the form of forecasts by the project managers and teams. Projects delays are
influenced by various factors and conditions. These include the shortage of the resources,
unavailability of the required technique or tools, natural delay due to calamities, and legal
reasons (Kerzner & Kerzner, 2017). Project delays greater impacts over several aspects and
factors of the project and empirical influence is laid over the project performance.
Summary
Project delay or disruption in the planned activities and tasks impacts on the function and process
of the project. It impacts over the performance as activities and tasks are delayed which build up
the pressure over the future processes and stages of the project. As the project is a group of
interlinked activities and tasks delay in one processor stage impacts on the further stages. The
delays also build up the cost and losses of the project (Binder, 2016). The technologies are
rendered obsolete and the applicability is decreased due to regular advancements and
developments in the projects. The longer duration of projects delays results in decreased
performance of the project.
Evidence
It has been observed that disruptions in the planned activities of the projects delay the decision
making processes. The project managers are delayed in taking the decisions for further activities
and tasks aligned (Adhau, et. al., 2012). Project delays also result in decreased viability of the
projects. With continuous developments and advancements in the projects, the project viability
and efficiency is decreased.
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6. Evaluate project management tools that help avoid or provide conflict resolution via
negotiated solutions.
Introduction
The dynamic business environment provides various project management tools that encourage
for reducing the project conflict with the application of project negotiation solutions. Project
negotiation solutions are developed by the project software and management tools. The recent
developments such as Project Management Information Systems provides with information and
communication technology to develop negotiation solutions. These software developments apply
automated software services and integrated communication technology to track and monitor the
project performance (Loosemore, et. al., 2012). The PMIS also deploys for undertaking the
decision making process and creates opportunities for identifying the inconsistent objectives and
aims to operate the projects.
Summary
The project management information systems or software also provided with tools such as Gantt
charts and action plans, milestones and project performance review sheets etc. The tool of Gantt
chart, for example, enables to divide the project activities and tasks into different stages and
actions and provides with opportunities to determine the execution and competition of the
activities. This is used further to inform the stakeholders and the project teams for the estimated
time required. The action plan and milestones are sued to embark the completion of various
stages and reflect upon the scheduled achievement of the project activities.
Evidence
To develop negotiation solutions and to avoid the conflicts the software such as IBM, Microsoft
Project, and Oracle etc. are used in the diversified projects. The software is designed to keep a
track of the project activities and programs, they reflect and indicate the delays and disruptions
(Martinsuo, 2013). The stakeholders are informed about the required changes and alterations in
the projects and systems through the utilization of Dashboards and In-board applications. The
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project's managers also deploy tools of stakeholder integration and involvement, conflict
management and conflict resolution.
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Discussion and Conclusion
It can be concluded from the above discussion and reading that negotiation is required in the
projects to ascertain the project conflicts and issues that arise in the project and its activities. It
can be determined that the project managers deploy various project management techniques and
approach to reduce the conflicts and issues to some extent. The weekly learning from these
portfolios is discussed below.
Week 1
The week has increased my knowledge in the field of government and non-government projects.
It has been analysed that government projects focus on the costs and finances where else the non-
government projects are focused towards the performance and outcomes derived from the
projects.
Week 2
From the week 2 of this portfolio, I have gained details and insight into the systems and
functions of logical agreements exercised in the projects including the persuasions and project
negotiation. I have analysed about the project logic and ethical considerations exercised.
Week 3
I have learned about the various project negotiation approaches and policies applied in order to
reconcile the differential project conflicts and issues.
Week 4
The week has provided me with the learning in the concepts of conflict management. The week
has provided education for applying techniques such as collaboration and compromising in the
project conflict management.
Week 5
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The week has increased my information and has provided details about the stakeholder
engagement, conflict management and maintenance the stakeholder relationship.
Week 6
The week has provided with opportunities to understand the approaches to identifying
inconsistent objectives and reconciling the differential objectives with the application of conflict
management and resolution techniques.
Week 7
The week 7 has informed and educated on the concepts of issues and conflict that may arise in
the lifecycle of the projects. The week has increased learning for conflict management.
Week 8
The week has increased my knowledge in the aspects of integrated decisions undertaken in the
pre-planned activities and processes of the projects.
Week 9
The week has taught me about the impacts of disruptions and delays in the projects. I have
learned that delays result in decreased performance and increased costs for the project teams and
managers.
Week 10
The week 10 of this portfolio has increased my knowledge in the fields of development of new
contracts and agreements for further development and accomplishment of the project goals and
objectives.
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References
 Adhau, S., Mittal, M. L., & Mittal, A. (2012). A multi-agent system for distributed multi-
project scheduling: An auction-based negotiation approach. Engineering Applications of
Artificial Intelligence, 25(8), 1738-1751.
 Binder, J. (2016). Global project management: communication, collaboration and
management across borders. Routledge.
 Chow, P. T., Cheung, S. O., & Yiu, T. W. (2012). A cusp catastrophe model of
withdrawal in construction project dispute negotiation. Automation in Construction, 22,
597-604.
 Dorochoff, N. (2016). Negotiation Basics for Cultural Resource Managers. Routledge.
 Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to
planning, scheduling, and controlling. John Wiley & Sons.
 Loosemore, M., Raftery, J., Reilly, C., & Higgon, D. (2012). Risk management in
projects. Routledge.
 Martinsuo, M. (2013). Project portfolio management in practice and in
context. International Journal of Project Management, 31(6), 794-803.
 Pryke, S., & Smyth, H. (2012). The management of complex projects: A relationship
approach. John Wiley & Sons.
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Appendices
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
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Week 7
Week 8
Week 9
Week 10
Week 11
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