Project Negotiation And Conflict Management Essay For Project Managers.

Commercial Project Negotiation for Project Managers

1. Communicating through negotiation requires a mix of many skills including, soft skills, interpersonal skills, people skills, and subject matter and generic skills.

2. This unit focuses the elements of negotiation and conflict, leadership communication, argument and persuasion, assertiveness and emotional intelligence, within the tangible commercial and legal attributes of the commercial project negotiation process.

3. During the unit diverse and complex government and non- government contractual arrangements are investigated.

4. Methods of project negotiation and conflict management in projects comprising differing technological and asset lifecycles are explored to obtain stakeholder commitment.

5. As a result of the techniques, case studies and vignettes studied students are shown how a foundation for lasting, fair and creative commercial project agreements between negotiating parties is obtained.

3 PMI Membership • You are strongly advised to join the Project Management Institute (PMI) as a full or student individual member.

• Material used in this unit is only available from the PMI and as a member you will have the ability to download - for FREE - copies of the PMI standards such as the PMBOK, Portfolio, Program and other standards.

• It is cheaper to join the PMI and be able to download the PDF files than buy the hard-copies required in this unit. 4 Study Tasks

• Reading Material – The prescribed readings are:-

• Taken from the PMI web site and consist of research and papers related to commercial negotiation, such as Collaborative Project Procurement (2015) Arrangements by Derek H. T. Walker and Beverly M. Lloyd

• Various Academic Journal articles – The unit also uses case studies and vinaigrettes.

• Videos – Various YouTube

• Assignments – Portfolio (each Week & Consolidated at the end) – 30% – Practical Assessment (Week 5) – 25% – Practical Assessment (Week 9) – 25% – Presentation and Written Assessment (Week 12) – 20% 5 Learning Outcomes

1. Describe the operation of diverse and complex government and non- government project contractual arrangements relevant to a range of managed services, ICT, and build agreements.

2. Analyse common arguments using logic, persuasion and influence factors as commonly applied to conflicting and/or competing stakeholder agendas.

3. Differentiate methods of project negotiation, conflict management, and stakeholder engagement across projects consisting of differing technology standards and asset lifecycles.

4. Explain and apply methods of identifying and reconciling inconsistent and conflicting objectives and drivers that develop, maintain, mange relationships and communication with key stakeholders.

Learning outcomes of the unit

5. Explain the consequences of project delays, disruptions, and changes to planned activities and the methods for claims variations, liquidated damages, contract entitlements, and arbitration.

6. Evaluate project management tools that help avoid or provide conflict resolution via negotiated solutions.

6 PPMP20011 Commercial Project Negotiation for Project Managers THE FIRST THREE WEEKS Week 1 - Topic: Commercial Planning and Commercial Projects. • Mandatory Readings: – Download from PMI web site:

• Read the Wikipedia article Channel Tunnel

• Peña-Mora F., and Tamaki T. 2001. "Effect of Delivery Systems on Collaborative Negotiations for Large -Scale Infrastructure Projects”. Journal of Management in Engineering. Vol:April 2001 pp.105-121.

• Optional Readings – Readings

• 21 Apr 2016 Channel Tunnel's unique status confirmed

• 29 June 2016 Brexit negotiations: Four ways to get a good deal – YouTube:

• The Chunnel - World's Longest Underwater Tunnel - History Channel – Egelstaff (2013) Academic assignments: Critical thinking and writing critically.

• Portfolio – Portfolio Instructions 8 Week 1 - Topic: Commercial Planning and Commercial Projects.

• Reflection: – What is a Commercial Planning? – What is a Commercial Project? – What role does Commercial Planning and Commercial Project Management have in the project, program, and a portfolio hierarchy? – Are there any essential keys for success between the participants of large scale projects?

• How will you write these reflections in the Portfolio for Week 1? 9 Week 2: - Topic: Theory of Negotiation and Negotiation in Practice • Mandatory Readings: – Alfredson T., & Cungu A. 2008. Negotiation Theory and Practice

• Optional Readings – Kerzner (2013) Section 25.5 Managing Troubled Projects;

• YouTube Videos: – Popular Videos Negotiation

• Other Web Sites:

• Portfolio for Week 1 10 Week 2: - Topic: Theory of Negotiation and Negotiation in Practice

• Reflection: – Does the ‘Theory’ outlined in the Alfredson T., & Cungu A., 2008 paper match the concept of negotiation on this unit? – In the more serious YouTube videos do you find that they support or contradict the concept of “commercial negotiation” as outlined in the first two weeks of the unit? – Is the “art of negotiation” applicable to the Project to build the Channel Tunnel?

• How will you write these reflections in the Portfolio for Week 2? 11 Week 3 - Topic: The Role of the Project Manager in Commercial Negotiation.

Learnings from your experience, this and prior unit reading, assignments

• Mandatory Readings: – Collaborative Project Procurement Arrangements (2015) by Derek H. T. Walker and Beverly M. Lloyd Walker • Read Executive Summary

• Chapter 1 • & skim Chapter 2

• Optional Readings – None

• Other Web Sites: – None

• Portfolio for Week 2 12 Week 3 - Topic: The Role of the Project Manager in Commercial Negotiation.

• Reflection: – Although we’ve asked this question before. What role do you think the project manager has in commercial negotiation? – Does that role vary according to the type of project? – Does that role vary according to the type of industry or domain? – Does that role vary according to where the person is in the organisation i.e. project manager, program manager, portfolio manager?

• How will you write these reflections in the Portfolio for Week 3? 13 PPMP20011 Commercial Project Negotiation for Project Managers THE READINGS FOR THE 1ST WEEK Case Study for the Channel Tunnel

• Summary – Introduction

• Privately Funded with cooperation governments, banks, contractors, regulators – The Inception Phase

• History, justification, cost estimate, concession, accuracy, contracts, quality, teamwork, financing, communications, monitoring & controlling. – The Development Phase

• Planning, subsequent court claims, project office. – The Implementation Phase

• BOT, conflicts of interest, contractual consequences, claims. – The Closeout Phase

• Scope, litigation, arbitration, public relations, lessons learned.

• Read with Negotiation in mind! 1. How much negotiation would have occurred during the project? 2. Who would the negotiation have been between? 3. Would successful negotiation have mitigated any of the subsequent outcomes? 4. What would have been required to undertake successful negotiation between the parties? 15 Peña-Mora F., and Tamaki T. (2001) • Read the paper with the Channel Tunnel Project in mind.

• Effect of Delivery Systems on Collaborative Negotiations for Large- Scale Infrastructure Projects: – Collaborative Negotiation Methodology; – Project Structures and Delivery Systems; – Potential Conflicts in Relationships; – Negotiation Analysis; – Contract Management; – Case Study; – Future Work; – Conclusion.

• Questions: – Do cultural dimensions of the participants impact on the Collaborative Negotiation Methodology? – Does the type of Contract impact on the subsequent Negotiation? – What is YOUR overall conclusion of the paper? 16 Optional Readings & Study

• News: – 21 Apr 2016 Channel Tunnel's unique status confirmed – 29 June 2016 Brexit negotiations: Four ways to get a good deal

• YouTube: – The Chunnel - World's Longest Underwater Tunnel - History Channel 17 PPMP20011 Commercial Project Negotiation for Project Managers REFLECTION UPON THE UNIT What’s this unit all about?

• So What?

• Big Themes

• Portfolio 19 So What?

• Why should Project Managers concern themselves?

• Why should Organisations concern themselves?

• How much can be saved by good negotiation?

• What is the maximum benefit gained?

• Aren’t project managers only concerned with the project and not so much with commercial negotiation?

• Isn’t this making a project manager a business manager or a commercial manager? 20 Big Themes

• Themes – Commercial Projects – Theory – Spectrum of Negotiation – Role of the Project Manager

• Portfolio – Your thoughts.

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 1 Topic:  Commercial Project Negotiation for Project Managers   Wikipedia article Channel Tunnel;   Peña-Mora F., and Tamaki T. 2001. "Effect of Delivery Systems on Collaborative Negotiations for Large -Scale Infrastructure Projects”;   21 Apr 2016 Channel Tunnel's unique status confirmed;   29 June 2016 Brexit negotiations: Four ways to get a good deal;   YouTube: The Chunnel - World's Longest Underwater Tunnel - History Channel.	1. Describe the operation of diverse and complex government and non-government project contractual arrangements relevant to a range of managed services, ICT, and build agreements.	The objective for the topic of this week was to ensure wide understanding in the context of the topic. Commercial planning is a set of processes of the organization that helps in defining the direction, strategy, and decision-making in contrast with the resource allocation for proceeding with this strategy.   Commercial project can be defined as the establishment of the facilities and structures for the business and the commerce including the hospitals and medical buildings, restaurants, retail shops, industrial shops, office buildings, and hotels. Commercial project management and commercial planning in helpful in identifying, setting, and achieving the goals and objectives of the organization in planned and sophisticated manner. It is helpful in identifying the current situation and taking steps accordingly. It allows the hierarchy to accomplish the project objectives as the lifecycle of the project continues. There are five essential keys including the staffing, supply, cost control, safety, and environmental issues In the Wikipedia article and the other readings for the Channel Tunnel (Chunnel); A better level of negotiation was occurred for avoiding the conflict and the negotiation was made between the France and UK government. Yes, proper and effective negotiation is capable of avoiding the conflicts those might be raised during the stage of the construction resulting in the elimination of the problem in future. United kingdom government and France government were having negotiations. Proper understanding of the objectives as well as the plan would make the negotiation successful. Any type of negotiation needs proper understanding and cooperation between the negotiating parties Proper and effective planning and understanding about the objectives and plan is a helpful measure for turning the negotiation successful. Then in the Peña-Mora F., and Tamaki T. paper about the Effect of Delivery Systems on Collaborative Negotiations for Large-Scale Infrastructure Projects: Yes it will be impacting the collaborative negotiation methodology, as the different participants involved in the project were owner, constructor, and A/E The time consumed in the negotiation can be escalated through conflict delays and the types of the contract can be utilized as check list for establishing the strategies for negotiation. The major focus of the paper was on the conflicts those might be raised during the execution of a project and thus, differentiating on the negotiations. “The delivery method selection has been better because of potential conflict.”	PPMP20011 Unit Profile PPMP20011 Moodle Web site
Are any of the activities above relevant to your reflections for the learning outcomes on the right?	3. Differentiate methods of project negotiation, conflict management, and stakeholder engagement across projects consisting of differing technology standards and asset lifecycles.	Are any of the questions above relevant to the learning outcome on the left? Yes, above questions are relevant. Some of the questions related to the culture dimension and project negotiation those have been leading to the conflict are relevant. The management of conflict will be dealing during the negotiation executed for solving the project conflict during the execution of the project.	The stakeholder engagement focuses on participation made within the project management processes and talking crucial decision-making for enhancing the performance and output of the project.
Are any of the activities above relevant to your reflections for the learning outcomes on the right	4. Explain and apply methods of identifying and reconciling inconsistent and conflicting objectives and drivers that develop, maintain, mange relationships and communication with key stakeholders.	Are any of the questions above relevant to the learning outcome on the left? Yes, above questions are relevant. Effective and proper communication and cooperation has been important factor for establishing a better relation between the stakeholders. It is an important concern that every individual engages and jot down the perspective of a certain activity in manner to identify the exact scenario from where the conflict has been raising and should be identified during the development of the project.	The purpose of the conflict should must be identified
Are any of the activities above relevant to your reflections for the learning outcomes on the right	5. Explain the consequences of project delays, disruptions, and changes to planned activities and the methods for claims variations, liquidated damages, contract entitlements, and arbitration.	Are any of the questions above relevant to the learning outcome on the left? Yes, above questions are relevant. Loss can be found in the productivity, resulting in the enhancement of the loss in the productivity and thus, it could result in the closing of the project contract.	Dissatisfaction of the customers can be identified.
Are any of the activities above relevant to your reflections for the learning outcomes on the right	6. Evaluate project management tools that help avoid or provide conflict resolution via negotiated solutions.	Are any of the questions above relevant to the learning outcome on the left? Yes they are relevant.	Have you any insights you can add from other units you have studies or readings you’ve made? “Some of the tools are to listen carefully, resolve the problem for which there is conflict, compromise, use power and confront”

 References

Kerzner H. 2013. Project Management: A Systems Approach to Planning, Scheduling, and Control, 11^th Edition.  Hoboken, USA: John Wiley & Sons.

Peña-Mora F., and Tamaki T. 2001. "Effect of Delivery Systems on Collaborative Negotiations for Large -Scale Infrastructure Projects”. Journal of Management in Engineering. Vol:April 2001 pp.105-121

PMI. 2013a. A Guide to the Project Management Body of Knowledge (PMBOK Guide) 5^th Edition. USA: Project Management Institute.