Disputes, Claims, Variations, and Arbitration in Project Management

This week’s learning mainly focused on the role of a project manager in commercial negotiation. In this unit, the different methods of project negotiation, conflict management and stakeholders engagement is discussed. Every project is bound to face certain disputes, claims, variation and arbitration. The consequences of the disputes are generally found to be negative. The claims can result in certain positive or negative outcome. Variation is often considered as a common concept in project management.

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Weekly Portfolio Learning Table: Week 7
Description of
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unit
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Supporting
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Week 7 Topic:
Disputes, Claims,
Variations, and
Arbitration.
Collaborative Project
Procurement
Arrangements
(2015) by Derek H. T.
Walker and Beverly
M. Lloyd Walker;
Cheung S.O., & and
Chow P.T. 2011.
Withdrawal in
Construction Project
Dispute Negotiation.
Journal of
Construction
Engineering and
Management.
Volume 137, Issue 12
3. Differentiate
methods of project
negotiation, conflict
management, and
stakeholder
engagement across
projects consisting of
differing technology
standards and asset
lifecycles.
This week’s learning mainly focused on the role of a project manager in
commercial negotiation. In this unit, the different methods of project
negotiation, conflict management and stakeholders engagement is discussed.
Every project is bound to face certain disputes, claims, variation and arbitration.
The consequences of the disputes are generally found to be negative. The claims
can result in certain positive or negative outcome. Variation is often considered
as a common concept in project management. As a consequence of variation,
certain uncertainties in the project are faced, that is needed to be monitored by
the project manager. Variation in the project can be defined as the actual
project condition, which is entirely different from the expected condition.
Therefore, the consequence of variation is often considered to be negative.
Arbitration however often results in settling of the disputes and resolves the
disputes. The consequences of arbitration are therefore found to be positive.
Disputes can be resolved by involving the project team in crucial decision
making. Furthermore, it is necessary to set realistic milestones and
contingencies so that there remains no reason of dispute. The claims can be
avoided by making the project requirements clear at the beginning of the
project. The variation can be avoided by following a planned approach of project
implementation why arbitration can only be avoided by eliminating the cause of
disputes among the team members.
If the disputes, claims, variation and Arbitration are not avoided, it might result
in considerable delay in the project and can often result in project failure. These
can be considered as certain negative aspect of a project and therefore should
be avoided.
The world view of researches matter as it appears quite often in the education
literature
Yes the sources are adequate for the researchers as it mainly discussed the
process and methods of commercial negotiation.
PPMP20011Unit 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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(
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Description of
topics including
reading samples
Learning
outcomes of the
unit
Learnings from your experience, this and prior unit
reading, assignments
Supporting
documentation
including your
prior learning
The ideas of chapter 5 considerably helped in structuring the thoughts around
commercial project negotiation. This week’s topic relates to the previous week
topic as it provided a thorough knowledge about the project negotiation,
conflict management and engagement of the stakeholders throughout the
project execution.
Are any of the
activities above
relevant to your
reflections for the
learning outcomes
on the right?
4. Explain and apply
methods of
identifying and
reconciling
inconsistent and
conflicting objectives
and drivers that
develop, maintain,
mange relationships
and communication
with key
stakeholders.
Proper communication with the stakeholders is an important aspect of
stakeholders’ management. Stakeholders are an important part of the project
and therefore, the stakeholders’ management is an important aspect of project
management. A communication plan is needed to be developed to maintain,
manage and communicate with the key stakeholders of the project.
Lecture Slides and
Tutorial
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.
Project delays, disruption and unplanned changes negatively affect a project.
This often results in increase in the cost of execution of a project which in turn
affects the project negatively. Any unplanned changes in the project further
results in change in the initial project plan thereby delaying the project.
Lecture Slides
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(
Insert Student Name) / (
Insert Student Number) - PPMP20011Unit Portfolio for Week 7
Description of
topics including
reading samples
Learning
outcomes of the
unit
Learnings from your experience, this and prior unit
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?
6. Evaluate project
management tools
that help avoid or
provide conflict
resolution via
negotiated solutions.
The project management tools such as proper scheduling and control, use of
communication plan, use of risk registers can help in avoiding a conflict.
Following a planned approach of project management often helps in providing a
resolution to an active conflict in a project by offering negotiated solution.
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References
Anbari F.T., Giammalvo P., Jaffe P., Letavec C., and Merchant R. (Date Unknown) “The Chunnel Project”.
PMI Case Studies in Project Management.
http://www.pmi.org/~/media/PDF/Academic/case%20studies/Chunnel%20Project.ashx Visited …../…/…
Kerzner H. 2013.
Project Management: A Systems Approach to Planning, Scheduling, and Control, 11th Edition. Hoboken, USA: John Wiley & Sons.
Peña-Mora F., and Tamaki T. 2001. "Effect of Delivery Systems on Collaborative Negotiations for Large -Scale Infrastructure Projects”.
Journal of
Management in Engineering. Vol:April 2001 pp.105-121
PMI. 2013a.
A Guide to the Project Management Body of Knowledge (PMBOK Guide) 5th Edition. USA: Project Management Institute.
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