PPMP20011 Course Portfolio Week 3: Commercial Negotiation and PM Role

This report, a student's portfolio entry for the PPMP20011 course, focuses on the role of a project manager in commercial negotiation. It examines negotiation methods, conflict management, and stakeholder engagement across different project types and industries. The report analyzes the importance of negotiation in defining stakeholder relationships and resolving disputes, emphasizing the project manager's critical role in achieving project objectives. It references key readings, including Walker & Walker (2015) on collaborative project procurement arrangements, and explores concepts such as relationship-based procurement and the impact of project delays. The report also discusses the application of project management tools for conflict resolution and the relevance of negotiation skills to real-world projects, such as the Chunnel Project. Additionally, the report highlights the significance of communication skills and understanding the motivations of stakeholders in successful commercial negotiations.

(Insert Student Name) / (Insert Student Number) - PPMP20011 Course Portfolio for Week 3
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 3 Topic: The
Role of the Project
Manager in
Commercial
Negotiation.
Collaborative
Project
Procurement
Arrangements
(2015) by Derek H.
T. Walker and
Beverly M. Lloyd
Walker;
3. Differentiate
methods of project
negotiation, conflict
management, and
stakeholder
engagement across
projects consisting
of differing
technology
standards and asset
lifecycles.
The objective of this week’s topic is to make sure you have an
appreciation of the Role of the Project Manager in Commercial
Negotiation.
Try to ask yourself the questions that were in the slides in the 3rd
week’s lecture:-
1. What role do you think the project manager has in
commercial negotiation?
2. Does that role vary according to the type of project?
3. Does that role vary according to the type of industry or
domain?
4. Does that role vary according to where the person is in the
organisation i.e. project manager, program manager,
portfolio manager?
5. What does the material in this week have to do with the
Chunnel Project?
6. How does this week’s topic relate to the previous weeks
topics?
In the Executive Summary and Chapter 1 of Walker & Walker
(2015) Collaborative Project Procurement Arrangements, in
reflection:
7. What is Relationship-based Procurement (RBP)?
8. What does Procurement have to do with Negotiation?
9. In what way does the engagement of the Project Manager
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 3
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
vary according to the level (1, 2, & 3)?
Have you spent any more time with YouTube and do you have any
more reflections you wish to write about?
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.
Negotiation is a difficult theory that project managers use to
achieve or win project objectives. As a constant process,
negotiation helps the manager to establish and define the duties,
contractual rights, and obligation of the parties (Alfredson and
Cungu 2008). In most cases, negotiation ensures the project
manager deploys and governs proprietary processes and technology.
It is the basis for defining relationships between stakeholders and
resolving disputes and conflicts. Indisputably, negotiation is a
structured and formal process. Studies have demonstrated the
commercial negotiation to be a process between parties who
bargain for prices (Alfredson and Cungu 2008). The project
manager must demonstrate exemplary skills by communicating the
goals of each party. The manager must also serve the interests of
project stakeholders to help them reach an agreement and achieve
mutual benefits. The project manager thus plays a critical role in
commercial negotiation.
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?
5. Explain the
consequences of
project delays,
disruptions, and
changes to planned
activities and the
methods for claims
variations,
The role of project manager would depend on the project. For
instance, in a complex project, the manager must demonstrate the
superlative communicative abilities thus facilitate the involved
parties. Without a doubt, the project manager should understand the
motives and the people depending on different contexts and
situational environments (Walker and Lloyd-Walker 2015). The
success of a commercial negotiation will depend on the project
leaders’ charisma, confidence, and the level of assimilating varied
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 3
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
liquidated damages,
contract
entitlements, and
arbitration.
and complex information. Nonetheless, the role of the manager
rarely changes because each manager must have strong negotiation
skills and personality (Alfredson and Cungu 2008). The individual
needs to understand factors that can affect the process. The project
manager or any leader within the domain must value verbal and
nonverbal communication skills.
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 strong negotiation skills where both parties realize mutual
benefit is relevant to the Chunnel Project (Walker and Lloyd-
Walker 2015). In the Chunnel Project, the project manager is
unwilling to engage in negotiations bearing insignificant benefits.
This week’s topic resonates with the previous topics because the
project manager plays a critical role in contract negotiation.
Similarly, relationship-based procurement is important in a project
as it provides mutual benefits to the stakeholders (Walker and
Lloyd-Walker 2015). It helps in handling the construction-B2B
contracts thus benefits the supply chain. In any supply chain,
procurement is an essential process. However, procurement process
requires the managers to consider the simple buying functions
founded in negotiation. Since the buyer and the supplier have
conflicting interests, negotiation process enhances mutual interests.
Nonetheless, the project manager must use different skills in
negotiating for a contract or procurement. In a complex project, the
manager needs to employ the superlative communication skills to
achieve the best outcome.
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 3
Bibliography
Alfredson, T, and Cungu, A, 2008, Negotiation Theory and Practice, available at: http://www.fao.org/docs/up/easypol/550/4-
5_negotiation_background_paper_179en.pdf.
Walker, D.H.T., and Lloyd-Walker, B M, 2015, Theory and Practice Collaborative Project Procurement Arrangements, PMI Published
Research, USA.
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