Manage Change, Disputes, Arbitration, and Mediation in Project Management

Project Management
Week 9: Manage Change, Disputes, Arbitration, and Mediation
Reading samples Learning
outcomes of the
unit
Learnings from your weekly study, experience, this and
prior unit readings and assignments
Supporting
documentation
including any
prior learning
Mandatory Readings
 Smith Chapters 4,
15, & 20
 Nilsson B. 2010
The Project
Management
Information
System (PMIS)
Made Easy: A
Case Study
 Kelly E.M. 2010
Governance Rules!
The Principles of
Effective Project
Governance
Optional Readings
 Pinto, J. K. &
Kharbanda, O. P.
(1995). Project
management and
conflict resolution.
Project
Management
Journal, 26(4), 45–
54.
 Diekmann, J. E. &
Girard, M. (1995).
Construction
In large projects, it is
essential that all project
members and
contractors should be
ready for any kind of
conflicts and disputes.
these conflicts or
disputes may take the
form of litigation. It is
the duty of contractors
to frame a strategy to
deal and resolve the
conflicts.
Among various reasons of conflicts and disputes, the key ones are schedule and
budget overshoot. In such scenario, different team members come with their
own opinion to resolve them. They also offer to adapt the opinions and provide
strategy for resolution. However, it ends in a dispute. Team members do play
blame games to transfer the ownership and responsibility of the issue on other
one another.
PPMP20013 Unit Profile
PPMP20013 Moodle
Web site
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Project Management
Reading samples Learning
outcomes of the
unit
Learnings from your weekly study, experience, this and
prior unit readings and assignments
Supporting
documentation
including any
prior learning
industry attitudes
toward disputes
and
prevention/resolu
tion techniques.
Project
Management
Journal, 26(1), 3–
11
 AS/NZS
8016:2013
Governance of IT
enabled projects
When a conflict occurs,
it gives rise to four
outcomes: conciliation,
mediation, litigation
and mediation.
Conciliation and
mediation bear less
costs for resolving the
conflicts. On the other
hand, litigation and
mediation incur much
high cost for dispute
resolution.
When mediation gets failed, the best solution to settle the disputes in
construction area is arbitration. Besides the above mentioned, there are many
other reasons which may lead to dispute occurrence in the project like different
interpretations of specifications and project scope, different opinion over the
methodology to be selected for the project, differences in best practices and so
on. When one or more issues are combined in a project, it may lead to
occurrence of disputes.
Padar, K., Pataki, B.
and Sebestyen, Z.
(2017). Bringing
project and change
management roles into
sync. Journal of
Organizational Change
Management, 30(5),
pp.797-822.
It is the responsibility of
project managers to
make sure that
assessment of risk and
analysis should be done
There are also other reasons which may give rise to disputes in the project
which include changes in requirement made by the client or by other
stakeholders. This is because of restraint behaviour from team members in
adapting the changes. The occurrence of dispute may lead to monitory loss in
the project It can also hamper the business reputation of the company in case
Pegoraro, C. and Paula,
I. (2017).
Requirements
processing for building
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