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 8 Topic: Commercial Negotiation in Government vs. Private Organisations.

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

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 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 Difference between Government & Private Organisations?

Government organizations are publicly funded institutions that are run by government officials. The purpose of government organizations is to maximize wealth creation. On the other hand, private organizations are privately funded firms that rely on the shareholders to sustain their operations (Walker & Walker, 2015). Project contract negotiation is not different between government and public organizations. In either case, the purpose of contract negotiation is to deliver projects that bring value to the owner. Although the ownership of the projects differs, delivering on project goals would follow similar principles

2. Does that Difference mean that Commercial Negotiation is Different between Government and Private Organisations?

Project contract negotiation is not different between government and public organizations. In either case, the purpose of contract negotiation is to deliver projects that bring value to the owner. Although the ownership of the projects differs, delivering on project goals would follow similar principles Contract negotiation in government organizations has implications for contractors. Governments tend to exercise monopoly over contract ownership and therefore have greater leeway in negotiations. With limited room for maneuvering during the negotiation, contractors and other parties tend to give more concessions to the government.

3. What is the Implication of the Differences to other parties, such as Contractors, or Designers?

principles Contract negotiation in government organizations has implications for contractors. Governments tend to exercise monopoly over contract ownership and therefore have greater leeway in negotiations. With limited room for maneuvering during the negotiation, contractors and other parties tend to give more concessions to the government.

Walker & Walker (2015) discuss several aspects regarding emerging forms of collaboration what are your thoughts regarding:

4. What are the fundamental characteristics of emerging RBP forms?

One of the fundamental characteristics for emerging RBPs is the need for partnerships between project owners and the project delivery team. Other characteristics include, greater commitments on creating relationships while reducing pursuit for power, focus on efficiency and effectiveness by adopting common platforms including those designed to increase effective communication among project partners. There is also more focus on process that promotes team interaction in the pursuit of common goals (Walker & Walker, 2015).

5. Do these RBP forms vary in different parts of the globe and, if so in what way?

Different RBP forms vary across regions and countries. Elements within the RBP forms are influenced by behavioral factors including culture and government regulations. When adopting any RBP model to local needs, care must be given to satisfy not only technical issues but also behavioral factors of the parties that impact differ from one place to another (Walker & Walker, 2015). Therefore the intensity of elements within the RBP model would vary significantly from region to another.

Walker & Walker (2015) then in Chapter 6 discuss Relationship Intensity of Various RBP Forms what are your thoughts regarding:

6. The implications upon negotiation with these forms of relationship?

Walker & Walker (2015) discuss Relationship Intensity of Various RBP Forms. The relationship intensity has implications over commercial negotiation. The level of intensity would affect the effectiveness of each element in the RBP model. Low levels of intensity would suggest that there is minimal collaboration within the project team (Walker & Walker, 2015). The hostile nature of collaboration during commercial negotiation may point to a lack of conviction on the part of participants. On the other hand high intensity suggest that participants in the project have faith in the project and are willing to pursue the interest of the project since they align with their individual values and interests.

7. Would the outcomes be impacted by a need for probity and governance in Government Commercial Negotiation situations?

Probity in government projects affects the outcomes of any project. The intensity of relationships would still affect outcomes in government projects since behavioural factor play a central rile in delivering KRAs through identified key project indicators (KPIs). Behavioural aspects are still relevant both in government and private enterprise commercial negotiation.

Walker & Walker (2015) look at the RBP Wittgenstein’s Family Resemblance Model, and so what are your thoughts regarding:

8. Can you see the way that the following would impact on negotiated outcomes?

a. Platform Foundation Facilities

Platform foundational facilities spell out the best value that the project aims to achieve. These facilities also define the known and unknown risk in the projects. These factors are likely to impact on the negotiated outcome since they form a core aspect of the project. Goals, motivation, and risks define how other activities of the project are to be conducted (Walker & Walker, 2015).

b. Behavioural Factors

Behavioral factors affect how project leaders would interact in the course of the project. Factors under consideration include organization culture such as no-blame culture and communication strategy (Walker & Walker, 2015)

c. Processes, routines and means

Processes and routine equally affect the negotiated outcomes as they cover important aspects such as transparency among project leaders, location of resources, and consensus decision-making. All these factors would inevitably affect the performance of the negotiated contract.

In conclusion to this week:

9. Do the ideas in Chapter 6 help in structuring your thoughts around Commercial Project Negotiation?

Ideas expressed in chapter 6 influence how I would approach contract negotiation. I would appreciate the relationships between various elements in a RBP model since they would inevitably affect the performance of the negotiated contract.

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