PPMP20011 - COMMERCIAL PROJECT NEGOTIATION: Consolidated Portfolio

This consolidated portfolio provides a comprehensive overview of the key learning outcomes covered in PPMP20011 - Commercial Project Negotiation. It explores the intricacies of project negotiation, conflict management, stakeholder engagement, and the impact of project delays and disruptions. The portfolio delves into various negotiation methods, conflict resolution strategies, and project management tools that help avoid or mitigate conflicts. It also examines the consequences of project delays, disruptions, and changes to planned activities, including claims variations, liquidated damages, contract entitlements, and arbitration. This portfolio serves as a valuable resource for students to consolidate their understanding of the course material and its practical applications in real-world project scenarios.

PPMP20011 - COMMERCIAL PROJECT NEGOTIATION
Consolidated Portfolios
1 | P a g e

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
2 | P a g e

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.
3 | P a g e

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.
4 | P a g e

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.
5 | P a g e

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
6 | P a g e

explanation for resolving the dispute or in case of any arguments arises between the parties and
is able to maintain the workflow and smoothness in the operations of the project.
7 | P a g e

LO3. Differentiate methods of project negotiation, conflict management, and stakeholder
engagement across projects consisting of differing technology standards and asset
lifecycles.
There are various methods which are used in the project of negotiation and the effectiveness of
such methods is required as it helps in resolving the disputes. A project of negotiation,
engagement of the stakeholders and the conflict management are different from each other and
has respective processes. However, the aim of all the process is to manage the workload and the
performance to accomplish project goals.
Summary
In order to maintain the smoothness in the operations of the project, project negotiation plays a
significant role. For accomplishing the objectives of the project, it is necessary that the interest of
the stakeholders is also considered in the project. However, the implementation of the method of
project negotiation is dependent on various factors such as the circumstances, nature of dispute
or conflict and the number of parties to the issue. Most commonly used method in project
negotiation is Distributive and integrative method. These methods are selected on the basis of the
requirements or the needs and it is to be selected by the project manager (Chow, et. al. 2012).
Distributive method of negotiation is adopted by the manager to resolve the issues between two
or more parties to the conflicts. Integrative method of negotiation provides the option of
positional bargaining in the conflict which assists to accomplish particular objective in the
project of negotiation. There are subparts to the project of negotiation which are adapted for
resolving the issues. Conflict management is one of most significant method which is included in
the project. There various conflictive circumstances which affect the performance of the project
and such circumstances must be avoided. Compromising is one of the methods of conflict
management in which one of the party to the dispute or both the parties’ compromises on certain
terms or the arrangement between them. Collaboration is another method of conflict
management which is based on the influential ideas of the project manager which helps in
resolving the disputes or conflict between the parties. This suppresses the negative impact of the
conflicts on the project and its performance (Dorochoff, et. al. 2016). Another part of the project
negotiation is stakeholder management. The issues or conflicts with the stakeholders are solved
8 | P a g e

with the help of the consultation. Group and integrated discussions are also made in which the
individual stakeholder and the group of stakeholders are given a chance to explain the issues that
they are facing and to be resolved accordingly.
Evidence
The issues or the conflicts will be resolved by way of adopting an effective method. It is stated
that different issues are faced in the project based on the size and the nature of the project. A
method like conflict management, engagement of the stakeholders and different negotiation
methods are adopted by the manager to keep the workload organised and managed. This makes
the attainment of the objectives of the project within a stipulated period of time. Managers are
held responsible for adopting an effective method as per the requirement of the circumstances to
eliminate the impact of issues on the performance of the project.
9 | P a g e

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.
Reconciliation is considered one of the most significant methods to maintain and enhances the
relations with persons involved in the project that helps in accomplishing the objective of the
project. If there is any conflict or issues in the project such issues are required to resolve by way
of adoption of the method of reconciliation as it affects the performance of the project. In order
to achieve the objectives of the project, it is necessary that proper relations are maintained with
the stakeholders and all the conflicts must be avoided for better growth (Moore, 2014). Unclear
duties and the responsibilities, doubts, etc. are some of the reasons which result in a dispute
between the parties.
Summary
For maintaining the relationship with the person involved in the project i.e. the stakeholders,
must be done by the adoption of methods of reconciliation. Personal and effective relations are
maintained by clearing the doubts in terms of the duties and the responsibilities of the person
responsible for the performance of the specific task. Such relationship is maintained in between
the manager and the stakeholders. This is done by Integrated Discussion between the parties.
There are various stakeholders such as investors, managers, workers, suppliers, etc who are
responsible for specific tasks and have certain duties and responsibilities (Brown and Raymond,
2014). Group discussion is another method in which stakeholders can communicate in the group
and can discuss the issues. This helps in developing an effective relationship between them.
Evidence
For achieving the objectives of the project within the stipulated time period, managers adopt the
method of reconciliation. It is also stated that the reconciliation method is effectively used by the
manager to achieve the goals in an efficient manner. There are various factors which have an
influence on the timely performance of the project. These factors are coordination and the good
working relationship between the managers, team members, and the stakeholders. Group
10 | P a g e

discussion helps the manager to identify the issues faced by the stakeholders and get their
opinion which will help in maintaining the relationship and accomplishing the project goals.
11 | P a g e

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.
In this part of the portfolio, the discussion will be made on the delay on the projects, obstacles
faced and the modification of the activities which were previously determined. This discussion
also includes the identification of the consequences in regards with the entitlement of the
contract, variations in the claims and the liquidated damages involved in the projects. It is well
established that the manager of the project must not make an alteration in the plans and the
related activities which disturb the performance of the project as the working schedule is also
modified (Sunjka and Jacob, 2013). The impact of modification made is on the final result,
therefore, it is required that performance of the project must be retained and managed.
Summary
Delays in the projects are the biggest risk which is influenced by various factors which may be
internal or external to the organisation. These factors include the cost of material required,
change in policies by the authorities, etc. It is the duty of the manager of the project to make use
of the tools and techniques to overcome the delay in the projects. Most of the times, the delay is
of time i.e. the project will not be completed within a stipulated period of time. Another
consequence of the delay in the project is the increase in the cost of the project and such financial
pressure is faced by the manager, investors, and the organisation (Hampton, et. al. 2012). For
confirming the completion of the project on time, each and every activity must be monitored by
the manager so that immediate rectification could be made in performance which may result in a
delay.
Evidence
Increase in the cost of the project is the best evidence for the delay in the project, disturbance in
the plans and its related activities. Therefore, to avoid such circumstances, the project manager
must adopt proper tools and techniques. Drafting or preparation of new arrangement i.e.
contracts is also connected with the delay in the project (Kikwasi, 2013). With the change in the
plans, alterations in such arrangement with the contractor will also be made by the project
12 | P a g e

manager. In case of dispute due to the delay in the project, it can be resolved by opting
arbitration as it provides quick redressal of the issues without the involvement of litigation
system.
13 | P a g e

LO6. Evaluate project management tools that help avoid or provide conflict resolution via
negotiated solutions.
For avoiding the delay in the projects and obstacles faced in accomplishing the objectives, it is
required that proper management tools and techniques are used or adopted. Adequate tools for
the project management must be adopted to accomplish the objectives. These tools are
considered as effective tools which provide solutions to the conflicts and the disputes in the
process of negotiation (Desmond, 2014). There are various management tools of the project
which can be adopted by the project manager in order to eliminate the conflicts and disputes.
Summary
Adoption of adequate tools of project management is dependent on nature, size of the project. It
has been found that project manager prepares the Gantt chart in which all the activities involved
in the project is mentioned and helps the manager to manage the project. Gantt chart includes the
time duration of each and every activity i.e. within what time particular activity is required to be
performed. This helps the manager to manage the speed of the performance of that particular
task. It also includes the milestones achieved in the project which is based on the performance of
the project. Allocation of responsibilities and resources are also done by reviewing the activities
mentioned in the Gantt chart (Kerzner and Kerzner, 2017). It also allows the commencement of
another activity after the completion of one activity and helps the project manager to implement
the same. There are another tool which is used for managing the project i.e. Work break Down
Structure. In this structure, the different activities are divided into parts and are allotted by the
manager as per the capability of the workers.
Evidence
In the project of construction, Gantt char plays an essential role as it helps in formulating and
designing the activities, duties, and responsibilities of specified persons of the project and the
time period of each and every activity. It also allows the project manager to monitor whether the
activities are performed within the stipulated period of time or not. It helps in completion of the
project within the specified period of time. Work breakdown structure is also adopted by the
manager of the project as it allows him/her to break the work and assign such work to the most
14 | P a g e

suitable person based on the capability and skills of the person. This helps in making sure that
the project will be completed before the deadline.
15 | P a g e

3. Discussion and Conclusion
Portfolios of each week focus on the new topic and provide learning regarding the same which
will be discussed below:
Week 1: Portfolio of this week discusses the operations and the functions involved in the
governmental and non-governmental project and the contractual arrangement entered into by the
parties to the projects.
Week 2: Logical arguments are essential for project negotiation as it provides justification to the
project's stakeholders. The relationship between the stakeholders and the managers are managed
by persuasion.
Week 3: Discussion of different approaches to negotiation such as Structural, Strategic,
Integrated and Distributive method is made. Each approach has its own features but all of them
focuses on resolving the issues or conflicts.
Week 4: In this week, the concept of conflict management is learned by me. The discussion is
made on resolving the issues by way of compromise and collaboration with the personnel
involved in the project.
Week 5: In this week, the discussion is made on the stakeholder’s management. It is learned that
the interest of the stakeholders must be considered in the project.
Week 6: Discussion is made on the management of the relation by reconciliation. Group and
integrated discussions are the examples of reconciliation method for maintaining the relationship
with the stakeholder.
Week 7: It focuses on the dispute and claims in regards with the project which can be solved by
arbitration.
Week 8: The concept of integrated discussion is made in this week as it resolves the conflicts to
the project. It also helps in enhancement of people engagement.
16 | P a g e

Week 9: This week focuses on the discussion made on the project delay and disturbance in the
plans. It was found that such changes have an impact on the outcome of the project.
Week 10: Framing of a new contract with the contractor or other personnel involved in the
project. Such issues can be solved through arbitration.
17 | P a g e

4. Reference:
 Brown, G. and Raymond, C.M., 2014. Methods for identifying land use conflict potential
using participatory mapping. Landscape and Urban Planning, 122, pp.196-208.
 Chow, P.T., Cheung, S.O. and Yiu, T.W., 2012. A cusp catastrophe model of withdrawal
in construction project dispute negotiation. Automation in Construction, 22, pp.597-604.
 Desmond, C., 2014. Project management tools. IEEE Engineering Management
Review, 42(4), pp.11-12.
 Dorochoff, N., 2016. Negotiation Basics for Cultural Resource Managers. Routledge.
 Hampton, G., Baldwin, A.N. and Holt, G., 2012. Project delays and cost: stakeholder
perceptions of traditional v. PPP procurement. Journal of Financial Management of Property
and Construction, 17(1), pp.73-91.
 Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to
planning, scheduling, and controlling. John Wiley & Sons.
 Kikwasi, G., 2013, February. Causes and effects of delays and disruptions in construction
projects in Tanzania. In Australasian Journal of Construction Economics and Building-
Conference Series (Vol. 1, No. 2, pp. 52-59).
 Lahdenperä, P., 2012. Making sense of the multi-party contractual arrangements of
project partnering, project alliancing and integrated project delivery. Construction
Management and Economics, 30(1), pp.57-79.
 Li, T.H., Ng, S.T. and Skitmore, M., 2012. Conflict or consensus: An investigation of
stakeholder concerns during the participation process of major infrastructure and construction
projects in Hong Kong. Habitat international, 36(2), pp.333-342.
 Mok, K.Y., Shen, G.Q. and Yang, J., 2015. Stakeholder management studies in mega
construction projects: A review and future directions. International Journal of Project
Management, 33(2), pp.446-457.
 Moore, C.W., 2014. The mediation process: Practical strategies for resolving conflict.
John Wiley & Sons.
 Sunjka, B.P. and Jacob, U., 2013. Significant causes and effects of project delays in the
Niger delta region, Nigeria. Southern African Institute of Industrial Engineering.
18 | P a g e

 Ten Brink, P. ed., 2017. Voluntary environmental agreements: process, practice and
future use. Routledge.
19 | P a g e

5. Appendix:
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
20 | P a g e

Week 7
Week 8
Week 9
Week 10
Week 11
21 | P a g e

22 | P a g e

23 | P a g e