Project Negotiation: Resolving Disputes, Claims, and Variations

This report examines project negotiation strategies, focusing on managing disputes, claims, variations, and arbitration. It highlights the consequences of disputes for both project managers and clients, emphasizing the importance of adhering to variation requirements and employing effective negotiation tools. The report also addresses the impact of disputes on project delays and suggests proactive measures such as frequent progress meetings and competent project management to minimize these delays. Key negotiation tools include active listening, emotional labeling, and building strong client relationships. Strategies for avoiding disputes involve managing emotional responses and prioritizing value-creating approaches. References to relevant academic sources support the analysis and recommendations. Desklib provides this and other resources to aid students in their studies.

PROJECT NEGOTIATION
Student’s Name
Class
Instructor
University
Date of Submission
Topic Description Learning Outcome Learning from personal Supporting Documentation

experience
Disputes, Claims,
Variations, and
Arbitration.
Methods of project
negotiation, conflict
management, and
stakeholder
engagement across
projects consisting of
differing technology
standards and asset
lifecycles.
Disputes, claims, variations,
and arbitration result in many
consequences to both the
client and the project
manager. To a project
manager, engaging in
disputes with a client ruins
the reputation of the
company that the project
manager is working for. This
is bad for business as the
company will not be able to
get projects that they can
work on. A client may also
decide to sue the project
manager and the company in
general and this will lead to
losses incurred through the
court process and fines paid.
A client is also
disadvantaged as not many
organizations will want to
Cheung S.O., & and Chow P.T.
2011. Withdrawal in
Construction Project Dispute
Negotiation. Journal of
Construction Engineering and
Management. Volume 137,
Issue 12

work with a stubborn client
hence making it difficult for
the client to get a good
organization that can work
on the intended project.
According to Khaitan, 2016,
to avoid this consequences
the contractor should comply
with all the variations
requirements so long as the
requirements are not:
● Materially different
from the original
work of the
contractor
● Are within the
capability of the
contractor
● Are to undertaken at a
reasonable time.
In project negotiation, the
word view of the researcher
really matters a lot to all the

parties involved. Adequate
validation of the research
also does more good than
harm in the negotiation
process. It is therefore
necessary for a researcher to
have the necessary resources
to carry out any particular
research making the final
piece of work effective
Consequence
of disputes,
Claims,
Variations,
and
Arbitration
play a big role
in the delay of
projects.
When there is
dispute
between the
contractor and
When serving any
client, a project
manager should
ensure that there is no
delay in the intended
time of finalizing the
project. Delaying a
contract can end up
resulting in litigation,
arbitration, disputes,
total overrun and
complete
abandonment of the
Khaitan, (2016). An Alternative
Dispute Resolution for
Variations in Construction
Contracts.
Aibinu, A. and Jagboro, G.
(2002) The Effects of
Construction Delays on Project
Delivery in Nigerian
Construction Industry.
International Journal of Project
Management, 20, 593-599.
http://dx.doi.org/10.1016/S0263-
7863 (02)00028-5

the project
manager, the
project will
not be
completed in
the required
time.
project [2]. To
minimize these
delays, a project
manager should
ensure that he is
competent in all
endeavors. Frequent
meetings on the
progress, having
accurate initial time
estimates, delivery of
materials on time and
availability of
adequate finances
until completion of
the project is also
important in
preventing the delay.
No activity was
relevant to the
reflections of the
learning outcome
on the tools of
When it comes to
project negotiation, a
variety of tools are
put into practice to
make the negotiation
Zach, W. (2018) Eight of the
Best Project Management Tools
for (almost) any Task

project
negotiation.
process quite easier.
As a project manager,
the following tools
should be used:
● Good listening
and
paraphrasing
techniques
● One should be
able to
incorporate
emotional
labeling in the
negotiations
● Appropriate
pauses and use
of open ended
questions
● Building a
close and
harmonious
relationship
with the client

● Be a
projective
thinker by
listening to
what the client
has to offer.
Methods of
avoiding disputes,
claims, arbitration
and variation
were essential in
the reflection of
the learning
outcome on the
right.
A client and a
contractor encounter
different conflicting
issues when
negotiating for a
given project. It is
therefore essential for
them to control their
nerves so as to have a
smooth negotiation
process. In order or
the contractor and the
project manager to
identify and reconcile
inconsistent and
conflicting objectives
they should:
Katie, S. (2018) 3 Negotiation
Strategies for Conflict
Resolution.

 Avoid being
provoked into
giving an
emotional
response that
may harm the
other.
 Value creating
strategies
should be put
into use.
 Make
appropriate
use of the
available time
to complete
the
negotiation.
References

Khaitan, (2016). An Alternative Dispute Resolution For Variations in Construction Contracts.
Aibinu, A. and Jagboro, G. (2002) The Effects of Construction Delays on Project Delivery in
Nigerian Construction Industry.International Journal of Project Management, 20, 593-
599. http://dx.doi.org/10.1016/S0263-7863(02)00028-5