Week 10 PPMP20011 Portfolio: Contractual Arrangements in Projects

This report delves into the critical role of contractual arrangements in commercial projects, using the Chunnel project as a case study. It examines the spectrum of contractual agreements, legal conditions for contracts, and the impact of these arrangements on project success and stakeholder relationships. The report explores the legal frameworks, including mutual agreement and exchange of value, and analyzes the benefits of formalizing the contract process. It addresses the complexities of contract creation, the need for negotiation skills, and the significance of contract types in governing contractor and buyer behaviors. The report also covers the relationship between contracts and risk ownership, the interaction between procurement processes and other knowledge areas, and the standardization of sales, procurement, and response processes. It concludes with a reflection on the Chunnel project's success and the factors that influenced its development.

(Insert Student Name) / (Insert Student Number) - PPMP20011 Unit Portfolio for Week 10
Weekly Portfolio Learning Table
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
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;
Kerzner (2013)
Chapter 19 Contract
Management;
Law handbook;
Contractual
Arrangements are
vital in commercial
projects as the price
and the quality of
procurement is not
the only concern
here. Risk mitigation
and the impact that it
has on the
stakeholders after
project completion.
These agreements
are policy terms that
aid in guiding the
project.
1. What is the spectrum of Contractual Arrangements?
Contractual arrangement is a form of mutual understanding between
two parties that contains policy terms and not legal. Therefore, the
spectrum of such agreements would be inclusive of the price of the
product or service, the quality and the terms of procurement.
2. What are the legal conditions for a Contract?
I have learnt that two conditions must be fulfilled to make a contract
legal where one would be mutual agreement with both the parties and
the other is when something of value is exchanged between them.
3. What kind of contracts existed in the Channel Tunnel?
The contracts that existed in the Channel Tunnel are mostly legal terms
between France and UK. The United Kingdom had been concerned
about its defences before the conception of the project. However,
certain terms of contract such as traffic regulation between the two
countries were implemented to enable the construction of the project.
4. What was the impact of some of those Contracts?
These contracts aided in successfully initiating the Chunnel Project from
both sides. However, the contracts did not put any restriction on the
number immigrants that enter UK illegally.
5. What do others say about Contracts?
Others have valued contracts as it is very crucial to maintain the
integrity of the project. A contract binds the parties into fixed terms
and therefore they cannot change their products or services as per
their wishes.
Walker, A. (2015).
Project management in
construction. John Wiley
& Sons.
Kerzner, H., & Kerzner, H.
R. (2017). Project
management: a systems
approach to planning,
scheduling, and
controlling. John Wiley &
Sons.
Goldsmith, H., & Boeuf,
P. (2016). The Chunnel in
History: breakthrough or
continuity?.
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(Insert Student Name) / (Insert Student Number) - PPMP20011 Unit Portfolio for Week 10
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
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.
6. What benefits flow from the formalisation of the contract process?
A formal contract process binds both the parties into providing the
agreed product or service at the agreed upon price. Therefore, the
terms of contracts aids both the parties to avoid any conflict after a
mutual understanding has been met.
7. How hard is the process and what training is required?
The process that is required for creating contracts is tough as attaining
a mutual understanding through negotiations is required. Therefore,
training regime that aids in boosting the negotiation and conflict
handling skills of a person can be beneficial.
8. Do organisations really implement this?
Yes, some organizations with the right training facilities do implement a
training process that trains future negotiators. However, many
organisations prefer candidates who have already attained the skill of
negotiation through previous experiences.
9. What kind of organisations?
Organizations that procure products and services at from outside in
large amounts need people with negotiation skills.
10. How important is the type of contract for governing contractor and
buyer behaviours?
Contracts that govern the behaviour of contractors and buyers are
significant as these contacts guide the price and quality of the products
or services.
11. What is the relationship between the contract and ownership of risk?
The contract contains some specific terms that aid in determining the
person or entity who would be accounted as responsible when
something of adverse nature happens.
12. What needs to be in place for a contract to exist?
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(Insert Student Name) / (Insert Student Number) - PPMP20011 Unit Portfolio for Week 10
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
Mutual understanding between the two parties and some valid terms
of service.
13. Can any element be absent for the contract to be still valid?
Something of value like money must be exchanged to make the
contract valid. However, it can be absent at the time of contract signing
and can be settled at the end.
14. How much interaction is there between the other knowledge areas and
the procurement processes?
Interaction between the procurement process and other areas of
knowledge only takes place when there is a need for a particular
product or service.
15. Might the interaction make the project fail?
The interaction will in turn aid in successful project execution as the
procurement team would negotiate based on the severity of the
requirements.
16. Are all of the processes the same?
No, all the processes are not the same. Some are critical to projects
while are for support purposes.
17. For an organisation selling to government is it possible to standardise
the sales, procurement, and response process?
Yes, the above-mentioned processes must be standardised. However,
these huge amounts of negotiation are required to standardise the
process.
18. By 2004 was the Chunnel a success?
The Chunnel project was a partial success as only one portion of the
tunnel was opened that connected north Kent to Folkstone.
19. In hindsight by 2004 would the project have been undertaken if the
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(Insert Student Name) / (Insert Student Number) - PPMP20011 Unit Portfolio for Week 10
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clock could be turned back?
There were several diplomatic and safety reasons that prevented the
development of the Chunnel project on time. Even if we are able to
turn back time these problems cannot be solved.
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(Insert Student Name) / (Insert Student Number) - PPMP20011 Unit Portfolio for Week 10
References
Goldsmith, H., & Boeuf, P. (2016). The Chunnel in History: breakthrough or continuity?.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Walker, A. (2015). Project management in construction. John Wiley & Sons.
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