Commercial Project Management

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 6 Topic: Commercial Conflict Resolution.

Collaborative Project Procurement Arrangements (2015) by Derek H. T. Walker and Beverly M. Lloyd Walker;

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

The objective of this week’s topic is to make sure you have an appreciation of the Role of the Project Manager in Commercial Negotiation.

Try to ask yourself the questions that were in the slides in this week’s lecture:

1. What is the influence of Trust upon Commercial Negotiation?

Trust is an important element in commercial negotiation. Trust enables negotiators to reach an amicable agreement within a short time. Lack of trust can lead to negotiations taking unnecessarily too long as parties do not disclose freely their opinions owing to suspicions that the other party may have ulterior motive on the issue under consideration (Steele & Beasor, 2017). Mutual trust is also important in striking contractual agreements with a view that there is likely to grow long term relationship that will be beneficial to all stakeholders involved.

2. Does Trust assist in Commercial Conflict Resolution?

Trust helps when resolving conflicts in commercial conflicts. Parties that have long-standing trust in business relationships are more likely to resolve issues of conflict. However, trust may not be necessary where a contractual agreement is explicit on issues that bring about conflict.

3. What is the influence of Collaboration Frameworks upon Commercial Negotiation?

Collaboration frameworks are essential in commercial negotiations. Past collaboration networks can guide present and future negotiations by acting as benchmarks for decision-making. If existing collaboration networks were instrumental in building trust, then they can be used to sustain positive commercial negotiations (Steele & Beasor, 2017).

4. Can Co-learning between Teams change the outcomes of Commercial Negotiation?

Co-learning between teams can lead to close working relationships. Through collaborative learning, teams begin to seek solutions to common problems through mutual understanding and collaborative efforts. Joint research and learning process can lead to better understanding of concerned teams during commercial negotiations

5. In what way does taking the Perspective of others help or hinder Commercial Negotiation?

Taking the perspective of others can influence outcomes during commercial negotiations. Stakeholders that are willing to take alternative views not only build trust during negotiations but also lead to mutually beneficial decisions amongst stakeholders (Mont et al., 2003). In turn, negotiations are likely to take a short period leading to early completion of projects

6. How does Social Capital impact on Commercial Negotiation?

Social capital refers to factors that help to make common social groups to function effectively. These factors include interpersonal relationships, norms, and cultural beliefs among others. Social capitals are crucial in promoting mutual agreements during commercial negotiations. Stakeholders who share common social capital are likely to build a close working relationship that aids in quick decision-making during commercial negotiations (Mont et al., 2003). Stakeholders in the negotiations are more likely to consider the perspective of the other stakeholders in making individually beneficial decisions.

7. Does it change because of the parties Cultural Background?

Cultural background can have an impact on the course of commercial agreements. Religious beliefs, for example, can influence how a stakeholder approaches an issue during the negotiations. It is important to be culturally competent when engaging in commercial negotiations with individuals from diverse cultural background.

In conclusion:

1. Do the ideas in Chapter 4 help in structuring your thoughts around Commercial Project Negotiation?

Ideas in chapter 4 have impacted my understanding of commercial negotiation. In particular, I realize that it is important to build trust during negotiations especially if stakeholders engage in long running projects

PPMP20011 Unit Profile

PPMP20011 Moodle Web site

Have you any insights you can add from other units you have studies or readings you’ve made?

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.

1. What is Conflict?

Conflict refers to lack of agreement or dispute over issues of common interest (Steele & Beasor, 2017). Commercial conflict refers to disputes arising from financial transactions involving stakeholders in common project. Commercial conflict entails disputes over cost or revenue sharing among stakeholders

2. What is Commercial Conflict?

Commercial conflict refers to disputes arising from financial transactions involving stakeholders in common project. Commercial conflict entails disputes over cost or revenue sharing among stakeholders

3. How does Commercial Conflict Occur?

Commercial conflict occurs when one party to an agreement does not meet their obligation. The victim in the conflict would raise the dispute with the relevant authorities asking the other party to honor the terms of contractual agreement or to compensate for the loss arising from their non-performance of contractual agreement (Mont et al., 2003).

4. What can we do to Mitigate Commercial Conflict?

Parties in a commercial negotiation can reduce potential conflict by expressly stating the roles and responsibilities of all concerned stakeholders in the project. A contract that is explicit on the expectations of all parties and the punishment for non-performance is likely to reduce conflict (Steele & Beasor, 2017). Importantly, commercial agreements should not be left on trust which can be abused by another party

Have you any insights you can add from other units you have studies or readings you’ve made?