The public organizations and private organizations are distinct entities based on the underpinning structure. The platform foundation including governance structure, motivations, communication strategy, integrated risk mitigation strategy, and substantial co-location has helped in differentiating these two organizations (Walker & Lloyd-Walker 2015). Without a doubt, commercial negotiation in private and public sectors are different. According to Kerzner (2013), in the public organizations, the aspects of political interference are evident compared to the private organizations. Collaboration offers stakeholders an opportunity to cope with uncertainty, risk, and ambiguity through the integrated contractor and client planning, problem-solving, and action.
The commercial negotiations can be successful based on the form of collaboration among the stakeholders (Walker & Lloyd-Walker 2015, p. 168). The relationship-based procurement considers important characteristics including behavioral factors, processes, means, and routines to enhance the enactment of PM practices. The success of this alliance depends on the level of collaboration among the parties, which should possess relevant expertise, skills, experience, and knowledge to handle such projects (Walker & Lloyd-Walker 2015). Globally, there are different forms of collaboration including Alliancing in Australia, closer relationship-based integration of supply chain, integrated project delivery, and framework agreements. In the US, an integrated project delivery is common while alliancing has been used in European countries.
The need for negotiation is to help project manager avoid blames in project implementations. This is achieved through incentive arrangements, mutual dependence, consensus building, and transparency and open-book (Walker & Lloyd-Walker 2015, p. 169). Although this may not be easy with other stakeholders, an authentic leadership should embrace no-blame behavior thus creates foundation supports. In motivation and context, the substrate of circumstances should promote collaboration. The parties involved in the project seem to benefit from the relational rationale or relationship because of turbulence and change.
Kerzner, H 2013, Project management: a systems approach to planning, scheduling, and control, 11th edn. John Wiley & Sons, Hoboken, USA.
Walker, DHT & Lloyd-Walker, BM 2015, Collaborative project procurement arrangements. Project Management Institute, Newtown Square, PA.