Commercial Project Negotiation: Conflict and Stakeholder Management

This report offers a comprehensive analysis of commercial project negotiation within the global construction industry. It delves into the operational complexities of diverse government and non-government projects, exploring conflict identification, consequences, and resolution methods. The report examines stakeholder agendas, emphasizing logic, persuasion, and influence. It differentiates various conflict management and negotiation techniques, as well as stakeholder arrangements across different projects. Furthermore, it explores strategies for reconciling conflicting objectives, addresses the consequences of project disruptions and delays, and evaluates project management tools like BIM for conflict avoidance and resolution. The report concludes by highlighting the importance of relationship-based project management, the essential qualifications of a project manager, and the significance of proper conflict analysis to mitigate potential issues. The report also provides a detailed overview of tools that can be used to resolve conflicts and the gaps that exist between project owners and project representatives.

Running head: COMMERCIAL PROJECT NEGOTIATION
Commercial project negotiation
Name of the Student
Name of the University
Author’s Note

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Introduction:
This report is an analysis of the research that has been conducted on the industry of
global construction. This report basically deals with the various operation of the diverse and
complex government and non-government projects, the various conflicts faced by the project and
the methods adopted for the purpose of dealing with the conflicts. Besides recognizing the
reasons responsible for a conflict the report also discusses about the various consequences that
arises due to the conflicts along with developing various tools by which all the conflicts could be
avoided.
1. Description of the operation of diverse and complex government and non-government
project contractual arrangements
Governance can be useful for various domains like public sector, corporate and they aim to
the idea that can be easily understood form the range of different ranges like bureau shaping,
instrumental network and various other things.
Government concepts and Definition: Muller helps in providing a simple and easily
understandable idea about the plan of governance. Muller generally helps in understanding the
terms and condition of the given problem which ultimately focuses on the fact of increasing the
protection and upgradation of various home based firms. Various investigation on RBP from the
structure of an organization helps in understanding it on a global scale which ultimately helps in
providing value through values and benefits through various forms of organization.
Organization structure has both hard and soft features. Hard features generally emphasize
on the proper designing of structure of organization and various sources of engineering for
proper maintaining of structure (Lindkvist Soderlund and Tell 1998). The soft governance

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focuses to change the design of various projects into action. One simple way for adjusting with
the situation is the accountability and transparency. Accountability generally keeps a track of the
various person who are responsible for various things like what, how and when. Transparency
aims in providing a proper method or way and which helps in making process a clear and easy.
2. Analyses common arguments using logic, persuasion and influence factors as commonly
applied to conflicting or competing stakeholder’s agendas
Persuading is nothing but the ability of someone to convince others by doing certain
things that are appropriate. Whereas influence is the combination of both the persuasion and
negotiation. Negotiation is nothing but a process adopted by someone for the purpose of
discussing something and to reach a certain stage where the results are much more satisfactory.
The companies should aim at meeting the demands of the stake holders. They must listen
to the demands of the stakeholders cautiously and then find out the interest and the expectations
of the stakeholders. This will give a proof to the stake holders that the company is really
interested in the benefits of the stake holders and make them feel that they can really depend on
the company thereby increasing the respect in the minds of the stakeholders about the company.
It also facilitates in creating the outline of the benefits of the proposed idea of the company
(Kurtz and Snowden 2003).
Then comes the logic. It is necessary to perform research on the proposed ideas and the
ideas that has been proposed by the competitors for the same purpose.it should be made sure that
any of the claims that the company makes is verified.
The conflicts in a project can be easily understood by the needs of the project owners and
the non-owners of the project by the sharing of the knowledge’s, insights of the replanted actions

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and the expectations on the performance. This provides the essential idea about the
understanding the requirements and what are the necessary steps that are to be taken and what is
the way of providing the resources and how to mobilize the resource for the purpose of
completion of the project as desired. From the project owners point of view performance means
the benefit from the outcome of the project causing encompass amongst different stakeholders
for example the end user as well as the “environment”. Accordingly, from the non-owners of the
project or NOP’s point of view includes the rewards and the returns as the performance. The
project owners and the NOP’s project team are able to complete a project successfully if the
understanding of the need and the situation of the project is done properly (Snowden and Boone
2007).
3. Differentiation of methods of conflict management, negotiation as well as stakeholder
arrangement across projects
Conflict management refers to the process of dealing with the difficulties faced in the
projects.
According to William one of the one project management writer described the conflicts
according to the differentiation and the interdependency concepts and concluded that the
structural uncertainty and uncertainty. Whereas other PM writers state that risk and uncertainty
are two different things. As they stated that risk is a casual concept and uncertainty is a
consequential concept (Schnable et al. 2009).
The complexities of a project can be described according to the designs, the briefing and
the way of delivering the project in terms of the known and the unknown facts. “Luft and
Ingham” developed the Johari window (Luft and Ingham 1961) which acted as a useful tool for

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the purpose of creating awareness. Complexities can be divided according to the structure,
technical, directional, temporal. The complexities are characterised by uncertainty, ambiguity,
and decrease in trust of the people (van Eijnatten and Putnik 2004).
4. Explanation and apply methods for reconciling and identifying inconsistent and
conflicting objectives and drivers
Various strategies were recommended by Snowden for the purpose of dealing with the
conflicts by making the perceptions to shift by using the knowledge and the perceptions that are
possible to be shared and reframed. This will initially result in the solving in the conflicts or will
create more problems. By the proper understanding and the main aims of the project it becomes
very much easy to take necessary actions. The use of better protocol as indicated in the quadrant
1 and 2. Quadrant 1 consisted of approach by procurement which is very much adequate and the
Quadrant 2 consists of the descriptions of the complicated projects that can be easily dealt with
by the use of the use of “traditional procurement approach”. The strategies of relationship based
procurement developed when the owner of the project is unaware of the problems in a project
(Collyer et al. 2010). In cases of this complex situations a lot of negotiation is required for the
better performance. The experts of the panel can do experiment in this step as stated in the
Quadrant 3. Quadrant 4 describes a situation of great chaos and what are the knowledge’s that
are required to change. Step that are necessary for the completion of the project needs to be
taken. The consequences can be devastating if the response towards moving of a disordered
situation to an ordered situation if the choices that are made not proper (Baccarini 1996).
Negotiating techniques are those that are the essential need for the process of removing
conflicts in any situations. There are several negotiating techniques and the main ones involved
are the access to the needs and are the after effects of this negotiation, the needs and the

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requirements of all the parties involved in the conflict, differentiating the discussions into
different stages, what are the areas that needs to be compromised, and then follow the action plan
for the purpose of betterment (Raz Shenhar and Dvir 2002).
5. Explanation of the consequences of project disruptions, delays and changes to planned
method and activities
The consequences of project disruptions, delays and changes to planned activities and
the methods for claiming variations, liquidated, contract entitlements as well as arbitration
(Klakegg Williams and Magnussen 2009) are provided below:
Cost overrun: In the construction stage, both the contractor as well as client faces
problem due to cost overrun. It is found that cost overrun is considered as an unexpected cost
which is mainly incurred in excess of budgeted amount due to improper cost estimation. Cost
overrun is mainly related to the time overrun when the project is not completed in time it will
create negative impact on the project cost.
Time overrun: The problem of time overrun generally reflects that the contractor does
not carry their work properly within the contract period. Time overrun is mainly categorized into
two types of excusable as well as non-excusable. Due to the time overrun, the progress of the
entire project is affected.
Dispute: In the industry of construction, some of the project delay generally occurs due
to the dispute that occurs between various contractual parties. This type of disputes mainly
occurs because the client pays the amount to the contractor

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Total abandonment: Total abandonment means that the entire project will stop
immediately as the client are facing number of financial difficulties. Some of the current delay of
the project is totally abandoned due to the problem of the contractor as well as client.
Arbitration: It is identified that some of the contractual parties does not accept the
decision of the mediator in context to project disruption, delays or changes and as a result they
generally appeal in arbitration. It is found that arbitration also make proper decision to solve the
entire problem. However, it is found that one of the party do not accept the decision that is
generally made and as a result they appeal for the decision of the litigation.
6. Evaluation of project management tools that help avoid or provide conflict resolution
It is found that in complex projects, both conflict resolutions as well as identification are
the extraordinary expensive as well as complex tasks. In many of the instances it is analyzed that
the designers do not have proper budget as well as time for exploring as well as resolving the
issues of conflict. In other instances, it is identified that full co-ordination is not possible to
accompany during the phase of the design like life safety equipment, HVAC which are generally
reflected in the drawings of design. It is found that even in design bid build project; both layout
as well as construction related detail may need information related with actual information that
will be generally installed (Howell Windahl and Seidel 2010). Therefore, BIM tool is mainly
utilized that helps in rendering the design in three different dimensions and as a result it does not
requires separate software for exploring the model visually. This helps in allowing proper
explanation of space and also helps in providing proper visualization of light studies as well as
improved communication within the entire team as well as with the various stakeholders of the
project. It is one of the intelligent 3D model procedures that helps in providing proper

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architecture, engineering professionals for efficiently planning, designing as well as constructing
as well as managing infrastructure for reducing conflicts (Wikström et al. 2010).
Example: BIM tools are helpful in minimizing the risk of communication, coordination
as well as misunderstanding about different participants.
Conclusion:
The report helps to conclude that there is a need for developing new knowledge’s
regarding the relationship based form of project and the essential qualifications of a project
manager. Proper analysis of the conflict should be made for the purpose of avoiding this type of
conflicts arising due to various factors. This report also gives a brief discussion about the
consequences arising due to the conflicts and the several tools used for solving this conflicts. The
gaps that exists between the knowledge, skills, attributes and experience development in the
project management are identified along with gaps that exists between the project owners and the
other representing the project. Initially the ways of decreasing this gaps have been developed. A
discussion regarding the relation based procurement has also been done for the purpose of better
understanding and to deal with several situations.

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Collyer, S., Warren, C., Hemsley, B., & Stevens, C. (2010). Aim, fire, aim—Project planning
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