Contractual Arrangements in Commercial Projects

This assignment focuses on contractual arrangements in commercial projects, particularly the Chunnel project. Students analyze various aspects including identifying conflicting objectives, managing delays and disruptions, and applying conflict resolution methods. They also evaluate project management tools used for avoiding or resolving conflicts through negotiated solutions.

(Insert Student Name) / (Insert Student Number) - PPMP20011 Course Portfolio for Week 10
Weekly Portfolio Learning Table
Description of
topics including
reading samples
Learning outcomes
of the course
Learnings from your experience, this and prior course reading,
assignments
Supporting
documentation
including your
prior learning
Week 10 Topic:
Contractual
Arrangements in
Commercial
Projects.
Case Study for the
Chunnel Project;
Australia National
Audit Office (2012)
Developing and
Managing
Contracts -
Getting the right
outcome, achieving
value for money;
HB 140-2000
Administration
manual for AS
4000-1997 General
conditions of
contract;
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.
The written mutual agreements form the contractual arrangement
because they are enforceable by law. In Australia, the government
conducts businesses through contracting various activities like
straightforward procurements (SAI 2000). Importantly, the
contracting processes consider managing risks, resources, and
relationships. It also focuses on keeping records, ethical behaviors,
and specifying responsibilities. The legally binding contracts are
determined by essential elements including agreement,
consideration, capacity, intention, and certainty (PMI 2013). In the
Chunnel Tunnel, the construction and procurement contracts are
evident. The concession contract was awarded during the project
implementation phase. The impact of the construction contract is
enormous because of the associated costs. The construction of the
tunnel also faced delays thus affecting the implementation.
In commercial projects like Chunnel Tunnel construction, there are
important contractual arrangements that stakeholders must consider.
These complex contract projects are delivered through procurement
and engineering contracts. The construction management contract is
also essential in delivering the project. The mega projects involve
many players thus makes the arrangement complex (ANAO 2012).
Designing and engineering arrangements would see the contractor
engage with others based on the technical aspects and feasibility
study. Apart from designing and engineering phase of a project,
procurement is required. In this phase, the project contractor
procures the required contraction works, equipment, and materials
PPMP20011 Course
Profile
PPMP20011 Moodle
Web site
Have you any
insights you can add
from other units you
have studies or
readings you’ve
made?
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(Insert Student Name) / (Insert Student Number) - PPMP20011 Course Portfolio for Week 10
Description of
topics including
reading samples
Learning outcomes
of the course
Learnings from your experience, this and prior course reading,
assignments
Supporting
documentation
including your
prior learning
Kerzner (2013)
Chapter 19
Contract
Management;
Law handbook;
Wikipedia
Australian
Contract Law;
PMBOK (2013)
Chapter 12 Project
Procurement
Management;
Procurement Rules
- Australian;
- Victorian;
- WA;
- NSW;
- QLD;
- USA.
Guardian News
article 7th April
2004 Deep in debt.
to facilitate the completion of the project. Nonetheless, the
contractor has to use an established system to implement the
procurement arrangements. The final phase is the construction
management where the contractor takes the role of the employer
based on different supply contracts and work package. It remains
the duty of the contractor to supervise these contracts and
coordinate the work packages to avoid variation and delay claims.
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(Insert Student Name) / (Insert Student Number) - PPMP20011 Course Portfolio for Week 10
Description of
topics including
reading samples
Learning outcomes
of the course
Learnings from your experience, this and prior course reading,
assignments
Supporting
documentation
including your
prior learning
Are any of the
activities above
relevant to your
reflections for the
learning outcomes
on the right?
2. Analyse common
arguments using
logic, persuasion
and influence
factors as
commonly applied
to conflicting and/or
competing
stakeholder
agendas.
In commercial projects like Chunnel Tunnel construction, there are
important contractual arrangements that stakeholders must consider.
These complex contract projects are delivered through procurement
and engineering contracts. The construction management contract is
also essential in delivering the project. The mega projects involve
many players thus makes the arrangement complex (ANAO 2012).
Have you any
insights you can add
from other units you
have studies or
readings you’ve
made?
3. Differentiate
methods of project
negotiation, conflict
management, and
stakeholder
engagement across
projects consisting
of differing
technology
standards and asset
lifecycles.
Negotiation requires the use of different communication skills like
people skills, generic skills, interpersonal skills, soft skills, and
subject matter. The methods of confliuct management and
negotiation focuses on asset and technological lifestyles thus obtain
high stakeholder commitment. Designing and engineering
arrangements would see the contractor engage with others based on
the technical aspects and feasibility study. Apart from designing
and engineering phase of a project, procurement is required.
Have you any
insights you can add
from other units you
have studies or
readings you’ve
made?
Are any of the
activities above
relevant to your
4. Explain and
apply methods of
identifying and
In this phase, the project contractor procures the required
contraction works, equipment, and materials to facilitate the
completion of the project. Nonetheless, the contractor has to use an
Have you any
insights you can add
from other units you
3 of 6

(Insert Student Name) / (Insert Student Number) - PPMP20011 Course Portfolio for Week 10
Description of
topics including
reading samples
Learning outcomes
of the course
Learnings from your experience, this and prior course reading,
assignments
Supporting
documentation
including your
prior learning
reflections for the
learning outcomes
on the right?
reconciling
inconsistent and
conflicting
objectives and
drivers that develop,
maintain, mange
relationships and
communication with
key stakeholders.
established system to implement the procurement arrangements.
The final phase is the construction management where the
contractor takes the role of the employer based on different supply
contracts and work package. It remains the duty of the contractor to
supervise these contracts and coordinate the work packages to avoid
variation and delay claims.
have studies or
readings you’ve
made?
Are any of the
activities above
relevant to your
reflections for the
learning outcomes
on the right?
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.
The delays in project completion attract compensation claims like
delay claims resulting to additional costs. The delays or disruptions
cause prolongation. It allows for the designing and engineering
arrangements would see the contractor engage with others based on
the technical aspects and feasibility study (ANAO 2012). Apart
from designing and engineering phase of a project, procurement is
required. In this phase, the project contractor procures the required
contraction works, equipment, and materials to facilitate the
completion of the project.
Have you any
insights you can add
from other units you
have studies or
readings you’ve
made?
Are any of the
activities above
relevant to your
reflections for the
learning outcomes
on the right?
6. Evaluate project
management tools
that help avoid or
provide conflict
resolution via
negotiated
solutions.
Contraction arrangement and engineering contracting provide an
opportunity for negotiating, mediating, and arbitrating conflicts
during the procurement process as explained by ANAO (2012).
Have you any
insights you can add
from other units you
have studies or
readings you’ve
made?
4 of 6

(Insert Student Name) / (Insert Student Number) - PPMP20011 Course Portfolio for Week 10
Description of
topics including
reading samples
Learning outcomes
of the course
Learnings from your experience, this and prior course reading,
assignments
Supporting
documentation
including your
prior learning
5 of 6

(Insert Student Name) / (Insert Student Number) - PPMP20011 Course Portfolio for Week 10
References
Australia National Audit Office (ANAO). 2012, Developing and Managing Contracts - Getting the Right Outcome, Achieving Value for Money,
ANAO, Canberra ACT. https://www.anao.gov.au/sites/g/files/net616/f/2012_Developing_And_Managing_Contracts_BPG.pdf
Project Management Institute (PMI). 2013, A Guide to the Project Management Body of Knowledge (PMBOK Guide) - Fifth Edition, available
at http://www.books24x7.com/marc.asp?bookid=51356.
Standards Australia International (SAI). 2000, Administration Manual for AS 4000-1997: General Conditions of Contract, Standards Australia
International, Sydney.
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