Project Negotiation and Conflict Management in Project Management

This presentation covers the importance of project negotiation and conflict management in project management. It discusses persuasion, logic, and influential factors, contractual arrangements, conflict management, stakeholder engagement, and legal aspects. It also covers the failure factors of the Channel Tunneling project, different project management strategies, negotiation skills, and communication techniques. The presentation cites various sources, including books on project management, human resource management, and international management.

All project management related concepts and theories plays very crucial
role in doing proper project negotiation and conflict management. In this
particular presentation, it mainly discussed about some points mentioned
below:
 Persuasion, Logic as well as different influential factors
 Complex as well as diverse Government and Non-Government project
contractual arrangement
 Presenting various project management related arguments
 Ways of doing conflict management, proper stakeholder engagement as
well as better project negotiation.

Channel Tunnel Project is mainly deals with 31.35 mi rail tunnel which
are built to connect both France and UK. The main to design this
particular tunnel is the increase in economy factors of both the country.
However, the incurred cost in this tunnel implementation have increased
to 14.9 Billion dollars from 5.5 Billion dollars.

The most important three factors leads this particular project of Channel
Tunneling towards failure are listed below:
 Modified specification of channel
 Improper communication between French as well as British team
 Numbers of bids done by different firms for this particular contract

Some of the legal aspects implemented in this project are discussed below:
 Dispute jurisdiction resolutions
 Ownership of Intellectual Property
 Offering and Acceptance
 Limitation of liability provisions
 Both intention and capacity to implement different legal relations
 Needed proper consent from both related parties.

 ROO (Rehabilitate – Own – and - Operate)
 BT (Build – and – transfer)
 ROT (Rehabilitate – Operate – and - Transfer)
 CAO (Contract - Add - and - Operate)
 BOT (Build – Operate – and Transfer)
 DOT (Develop – operate - transfer)
 BLT (build – lease – and - transfer)
 BTO (Build – transfer – and - operate)
 BOO (Build – own – and – operate)

 Equity Stakes
 Constant purchases of all available services
 Guarantees
 Both delivering and building contracts
 Concessions
 Leases
 Services purchase

 Both the goals and the interest of all stakeholders and
parties.
 Interdependency of the negotiating parties
 The past relations among the two parties
 The personalities, temperament, and nature of the parties
 Each party’s persuasive ability

 Personal relationship
 Fear
 Mutual obligations
 Future considerations
 Practical wisdoms

 Paraphrase after listening
 Emotional Labeling
 Report Building
 Open Ended Questions and Effective Pauses
 Being a Projective Thinker

 Accommodating
 Avoiding
 Collaborating
 Compromising
 Competing

 Surveys and questionnaire
 Road shows and exhibitions
 Public meetings
 Utilizing full range of media
 Structured interviews
 Semi structured interviews

 Right projects decision
 Project portfolio overview
 Optimum Investment Decisions
 Standardized Project Initiation
 Strategic Capacity Planning

 Project negotiation needs a mix of skills
 Commercial negotiation is all about settling a favorable
negotiation
 Project evaluation manages the scope and objectives
 Proper strategies are needed to making agree on a
negotiable point.

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