PPMP20015: Challenges of Payment Disputes in Australian Projects

This report delves into the critical issue of payment disputes within the context of commercial projects in Australia. It begins with an executive summary outlining the significance of payment as a key factor in project functionality, followed by an introduction that emphasizes the potential for disputes and the importance of risk mitigation. The report then describes the topic, highlighting the communication gaps between project owners, contractors, and subcontractors, and the importance of contractual documentation. It includes a summary and critical appraisal of a relevant journal article, focusing on project complexity and risk management. The report identifies primary research questions related to the causes, effects, responsibilities, and mitigation strategies for payment disputes. A personal reflection on the importance of project management and the impact of payment disputes is included, concluding with a summary of the challenges and the need to overcome them for project success. References to key articles are also included.

Running head: RESEARCH IN PROJECT MANAGEMENT
RESEARCH IN PROJECT MANAGEMENT
Name of the Student
Name of the University
Author Note

2RESEARCH IN PROJECT MANAGEMENT
Executive summary
In the process of project management, there can be different types of dispute which may
occur internally or externally within the project. One of the major factors which can be stated
here is the issue which is related to the payment criteria. Payment can be considered as one of
the most important factors which play a vital role in the sector of the functionality of a
project. There can be different factors which can be included into the context which directly
affect the constraint of payment within the working of the project.

3RESEARCH IN PROJECT MANAGEMENT
Table of Contents
Introduction................................................................................................................................4
Description of the topic..............................................................................................................4
Journal Articles..........................................................................................................................4
Summary of most relevant article..............................................................................................5
Critical Appraisal of the article..................................................................................................7
Primary research questions........................................................................................................7
Personal reflection......................................................................................................................8
Conclusion..................................................................................................................................8
References..................................................................................................................................9

4RESEARCH IN PROJECT MANAGEMENT
Introduction
In the process of project management, there can be different types of dispute which
may occur internally or externally within the project. One of the major factors which can be
stated here is the issue which is related to the payment criteria. Payment can be considered as
one of the most important factors which play a vital role in the sector of the functionality of a
project. In the report, the emphasis is put on the aspect of commercial projects which are
active in Australia (Sunindijo 2015). Project management process can undergo different types
of the scenario of risk, but the main point which can be stated here is that mitigation aspect
should be properly taken into consideration so that it does not impact the internal as well as
the external working of the organisation.
Description of the topic
In most of the article it can be noticed that relating to the issue is that communication
gap exist between the owner of the project and the contractor and the sub-contractor. The
documentation part of the projects can also play a vital role in the context as the contract are
stated and is predefined. The working of the overall project would be dependent on the
contract which is stated, and both the owners and the contractors have to abide by the rules
and follow them accordingly in their daily activity relating to the project.
The main aim of the report is to take into consideration different articles which are
related to challenges of payment dispute cases in major projects in Australia. Among the
article which is chosen an article is critically assisted in getting a clear idea of the operation
and the loopholes which are included in the process.

5RESEARCH IN PROJECT MANAGEMENT
Journal Articles
Keywords Project manager and
role
Payment dispute
cases
Mitigation strategy
Citation Sunindijo, R.Y., 2015.
Project manager skills for
improving project
performance. Internationa
l Journal of Business
Performance
Management, 16(1), pp.67
Liu, J.Y.C. and
Chiu, G.C.T.,
2016. Influence of
Project Partnering
on Stakeholder
Role Ambiguity
and Project
Manager Risk
Perception in
Information
System
Projects. Project
Management
Journal, 47(6),
pp.94-110.
Qazi, A., Quigley, J.,
Dickson, A. and
Kirytopoulos, K.,
2016. Project
Complexity and Risk
Management
(ProCRiM): Towards
modelling project
complexity driven
risk paths in
construction
projects. Internationa
l Journal of Project
Management, 34(7),
pp.1183-1198.
Retrieved
from
CQU library CQU library CQU library
Summary of most relevant article
Article chosen:

6RESEARCH IN PROJECT MANAGEMENT
Qazi, A., Quigley, J., Dickson, A. and Kirytopoulos, K., 2016. Project Complexity and Risk
Management (ProCRiM): Towards modelling project complexity driven risk paths in
construction projects. International Journal of Project Management, 34(7), pp.1183-1198.
Summary
During the phase of a construction boom, the contractors and the subcontractors
concentrate more on finalizing the work of their project than on emphasizing the sector of
niceties of document related to contract. As stated by (Qazi et al. 2016) that it is not such an
important task to be aware of the payment factor but for the parties to remain aware of the
responsibility and contractual rights are very much important especially those are related to
the sector of payment (Qazi et al. 2016). The provision of the contingent payment provisions
are inserted frequently included in subcontract agreement. According to the standard of
project management there should always prevail a documentation which states the roles and
duties of the each of the people who are involved into the working of the project. There is a
clause which would be attached to the documentation, this type of documentation can also be
termed as legal document and are attached with legal aspects. One of the hallmark languages
which is used in this context is the pay-if-paid clause where the general contractor and the
subcontractors directly agree to the payment receipt from the owner (Qazi et al. 2016). In
these type of situation, it can be stated that the subcontractor assumes that the risk of non-
payment from the owner may be applied. The communication aspect can be very much
important in this situation, the interaction between the contractors and the owner should be in
a justified manner, so there is a sense of responsibility between both the interacting parties.
The main challenge which is seen in the sector is the trust aspect which prevails
within the projects working. Sometimes it can be seen the sub-contractor, and the contractors
do not have trust in the owner of the project. As stated by (Qazi et al. 2016) most of the

7RESEARCH IN PROJECT MANAGEMENT
problem which is encountered in the field of challenges in payment disputes alter the normal
flow of the project and hampers the relation which prevails between the owner and the
contractor and the subcontractor.
Critical Appraisal of the article
In the context of the article which is taken into consideration, it can be stated that in a
commercial project two factors play a very vital role which is the budget factors and the time
factor (Qazi et al. 2016). Taking into consideration the Australian projects disputes to
payment play a very vital role. Alteration of the success factor of the project can be affected
in these type of scenario. It can be stated that there is a point of contact which depicts the
budget constraint in a project. Senior most authority in a project management process takes
the overall control of the projects and decides upon the parameters which can be included
into the process. As in the article, it can be stated that communication factors between the
project team and the contractor and the sub-contactor are very much important in the sector
of completion of the projects and clearing of doubts relating to non-payment factors (Mir and
Pinnington, 2014). Critically focusing on the article, we would get to know that payment
related issue can arise due to the lack of interest in a project which directly puts the project at
risk factor. Initially, budget factor is set during the initial start of the project management
process so that there are no problem which are set during the implementation phase (Liu and
Chiu 2016). Challenges can be encountered anytime during the phase of the project
implementation, the point of clarification can be very much vital which sets the point of
budget constraint. These factors are very much important and the point should be taken into
consideration in each and every area of doing a process of the project (Muller 2017).
Primary research questions
Question 1

8RESEARCH IN PROJECT MANAGEMENT
What are the challenges which can lead to a problem related to payment dispute?
Question 2
What are the effects of the conditions and how would it be included in the internal working?
Question 3
Who is responsible for the conditions?
Question 4
What is the mitigation strategy which can be incorporated into the scenario when there is a
payment related dispute?
Question 5
How can the dispute of payment affect the overall success factor of the project?
Personal reflection
According to me, the project management sector is a very crucial sector which should
be given utmost priority. In recent times I have indulged in different activities which majorly
focus on the aspect of payment disputes and how it directly affects the internal and external
working of the project. There can be different types of risk factors which can be included into
the working of a project, but it can be stated that dispute relating to payment can play an
important role in deciding the success factor of the project. In project management scenario I
have seen that senior most members are majorly involved in planning so that budget-related
constraints are not reinforced into the working of the project.
Conclusion
Project management process has to be executed properly the challenges which are
faced relating to payment dispute has to be overcome so that the project can lead to the factor

9RESEARCH IN PROJECT MANAGEMENT
of success. Moreover, the challenges which are encountered within the working should not be
allowed to be accompanied in the sector of working. If they are indulged into the working of
the project it would be directly affecting the success factor of the project.
References
Liu, J.Y.C. and Chiu, G.C.T., 2016. Influence of Project Partnering on Stakeholder Role
Ambiguity and Project Manager Risk Perception in Information System Projects. Project
Management Journal, 47(6), pp.94-110.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), pp.202-217.
Muller, R., 2017. Project governance. Routledge.
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and
technology. Routledge.
Qazi, A., Quigley, J., Dickson, A. and Kirytopoulos, K., 2016. Project Complexity and Risk
Management (ProCRiM): Towards modelling project complexity driven risk paths in
construction projects. International Journal of Project Management, 34(7), pp.1183-1198.
Sunindijo, R.Y., 2015. Project manager skills for improving project
performance. International Journal of Business Performance Management, 16(1), pp.67