PPMP20011 - COMMERCIAL PROJECT NEGOTIATION: Consolidated Portfolio

PPMP20011 - COMMERCIAL PROJECT NEGOTIATION
Consolidated Portfolios
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Table of Contents
1. Introduction..................................................................................................................................3
2. Course Learning Outcomes.........................................................................................................4
LO1. 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
LO2. Analyse common arguments using logic, persuasion and influence factors as commonly
applied to conflicting and/or competing stakeholder agendas.....................................................6
LO3. Differentiate methods of project negotiation, conflict management, and stakeholder
engagement across projects consisting of differing technology standards and asset lifecycles.. 8
LO4. 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
LO5. Explain the consequences of project delays, disruptions, and changes to planned
activities and the methods for claims variations, liquidated damages, contract entitlements, and
arbitration...................................................................................................................................12
LO6. Evaluate project management tools that help avoid or provide conflict resolution via
negotiated solutions....................................................................................................................14
3. Discussion and Conclusion........................................................................................................16
4. Reference:..................................................................................................................................18
5. Appendix:..................................................................................................................................20
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1. Introduction
It is well established that the parties to the arrangement must be constant with each other i.e. they
must be on the same page and there are no issues between them. However, in case of issues or
conflicts between the parties, there are various redressal methods, one of which is Negotiation.
Negotiation can be described as a process in which discussion is made between the parties for
resolving the issues or the conflicts between them. This may result in alteration of terms and
conditions of the arrangement or in the duties or responsibilities and the performance of the
parties. In the management of the conflicts or the disputes, Negotiation holds an essential place.
The consolidated portfolio in this assignment provides an overview of the negotiation in
summarised form. This also brings into focus the concept of project negotiation which includes
the conflict management, shareholder and contract management and these concepts are also
discussed in this consolidated portfolio. The portfolio in consolidated form will also provide
insight of the learning outcomes. After the discussion of the learning outcomes are made in the
consolidated portfolio, it will be concluded with the discussion on weekly work.
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2. Course Learning Outcomes
LO1. 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.
For ICT and managed services, the operations of the contractual arrangement are defined in the
learning outcomes by targeting the Governmental and non-Governmental Projects. As per the
nature of both the project and the differences between them, discussion on the need for the
contractual arrangement is made in the learning outcomes (Ten Brink, 2017). It must be noted
that the contractual arrangement enhances the relationship between the managers or the suppliers
or other related parties. Discussion of the contractual arrangement also includes the description
of the commercial plan of the organisation.
Summary
Due to the difference in nature in the Governmental and Non-Governmental Projects, the needs
of the project for the contractual arrangement between the parties can also be differentiated. In
the projects of the Government, the main focus is on the cost of the project and managing cost of
the project. It has been seen that the government enter into such arrangement which provides
completion of the projects by the contractor at a cheaper cost. Whereas it is not similar to the
project of Non-Government as in Non-Governmental projects, the focus is on quality of
performance and the outcomes of such projects. It must be noted that for completion of the non-
governmental project, it enters into the contract with such contractor who completes the project
with quality or completes the projects effectively and efficiently. The project managers enter into
a contract based on the needs of the project (Lahdenperä, 2012). For developing the scope of the
concept of the negotiation, contractual arrangements are entered into for engaging the
stakeholders. For engaging the stakeholders in the project, contractual arrangements are made
which defines the terms and conditions as well as the responsibilities and the duties of particular
stakeholders. Private organisations may also be included in the projects of the government based
on their potential.
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Evidence
It is essential that contractual agreements must be made for the projects like Channel Tunnel in
which both, private and government organisation works together to achieve the same goal or
target. The need of contractual arrangement is high in such big projects. It is must be understood
that there are various factors based on which the contractor for the project is selected i.e. the
tenders of such contractor, a price quotation for the project, potential of the contractor. This also
includes that the contractor can be a private organisation or sole-contractor. The agreement to the
terms and conditions of the contract must be agreed by the contractor. It is necessary that before
the contract is made, the organisation or the individual applying to get the project must satisfy
the conditions or the terms mentioned in the tender. In general sense, the projects of the
Government are mostly big projects which require expertise and skills for completing it
effectively and efficiently. It also requires an adequate time period for completing, therefore, it is
made sure by the manager of the project to select or appoint most skilled, expert, an experienced
organisation which completes the project on time without compromising with the quality.
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LO2. Analyse common arguments using logic, persuasion and influence factors as
commonly applied to conflicting and/or competing stakeholder agendas.
As per this learning outcome, the process of negotiation influences the issues or the disputes
between the stakeholders and provides a solution which is beneficial for both the parties to the
contract. The nature of the negotiation is dependent on the interests of the parties to the dispute
which also includes the dispute with the stakeholders (Li, et. al. 2012). It is also stated that
negotiation is possible only with the help of the reasonable judgment of the mediator and the
efforts made by both the parties i.e. the manager of the project and the contractor. This also gives
rise to the smooth working of the operation or the functions involved in the project. There are
various other factors which also contribute towards the effectiveness of the negotiation which
includes the power, behavior, attitude and the commitment of the mediator towards providing the
solution to the problems or the issues of the parties to the arrangement.
Summary
It must be noted that the most common factors which have an impact on the process of
negotiation that results in providing resolution to the conflicts are power, attitude, interest, and
the behavior. It has also been seen that the people with power and authority have an influence on
the people at the subordinate position and the on the stakeholders (Mok, et. al. 2015). These
people with authority take into consideration the interest of the stakeholders in the process of
negotiation. It is also suggested that the mediator and the project manager must always take the
interest of the parties while negotiating the terms. Persuasion i.e. influence is also considered one
of the most significant factors for providing the solution to the dispute.
Evidence
In the huge projects like Channel Tunnel, the chances of issues and the conflicts are high as
different person or stakeholders are involved in the project with different interest. The interest of
the stakeholder and the workflow is managed by the manager by the use of persuasion which
also helps in resolving the disputes. In the negotiation process, managers hold a significant place
and help in engaging the people without the use of authority or the power available to him/her. It
is significant that the person resolving the issues or the conflicts is able to provide a reasonable
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