Contractual Agreements
Contract agreement is a common agreement between two entities in regards to a specific organization or project that will be useful for both the entities. Contractual agreements might be amongst government and non-government organizations relying upon the sort of work required. Contractual courses of action over government and non– government divisions have distinctive strategies for project negotiation, refereeing and stakeholder commitment. For the most part, there is extremely restricted extent of project negotiation in government contracts as the administration sets the conditions according to their necessities and furthermore changes the terms to suit their requirements. In any case, business organizations dependably invest a tremendous measure of energy in arranging a contract keeping in mind the end goal to achieve common agreement.
The final outcome of this report is a detailed summary of learnings related to the topic that have been offered during the entire course of this particular module.
- Summary– Operations of government and non-government contractual arrangements are different in every aspect. While the government contracts are more emphasized towards the benefit of the government only, the non-government contractual arrangements are made such that both the contract partners gain equal benefits from the project. This applies to all types of industries including ICT, managed services, build arrangements and others.
- Evidence– These differences in the contractual arrangements are evident from the two cases of Channel Tunnel Project (Government project) and Queensland Health Payroll System Project (Non-Government project). Channel tunnel project was based on the development of a railway tunnel including some other works like telecom transmission lines and services whereas the Queensland Health Payroll System was based on the development of a new payroll system. In the first project, most of the benefits were for the government regardless of whether the contract partners are actually gaining feasible benefits from the project. On the other hand, in the payroll project, the hospital gains service benefits whereas the developer gains monetary benefits.
- Summary– Conflicting and competing stakeholders are often found in projects that occur due to personal preferences regarding the terms of the contract or different personal expectations. However, the extent of the conflict is more dependent on the control of environment imposed by the organization. While conflicts are less seen in the non-government projects, government projects often encounter stakeholder conflicts due to lack of control and clash of interests.
- Evidence– In the Channel Tunnel project, there are several conflicts noticed among the stakeholders as several contract partners have been appointed to conduct the entire project. Moreover, due to lack of proper definition of stakeholders’ roles and limitations, the stakeholders often competed with each to gain maximum benefits. In the payroll project, the stakeholders were more controlled with their duties being specified clearly, effectively ending any chances of conflicts.
- Summary– Government and non-government entities have different methods of project negotiation, conflict management and stakeholder engagement across different types of projects. While non-government entities focus on technical expertise for stakeholder engagement, government entities generally use their existing human resources roster for engagement irrespective of superior or inferior technical expertise. For project negotiation, government representatives look for the lowest possible cost for the project whereas non-government entities look for best possible outcome within feasible range of investment that will benefit both the parties involved in the deal.
- Evidence– Evidence can be found in the modes of operation in both the channel tunnel project and the payroll project that support all the arguments stated above.
- Summary– Relationships between stakeholders often differ in the cases of government and non-government projects. The relationships between the stakeholders depend significantly on the methods of communication used in the project. The stakeholder relationships vary in government projects when they may be good at one time but conflicting on some others. The relationship approach in non-government projects is much more professional that promotes team work and coordination during the course of the project.
- Evidence– The stakeholder relationship differences can be clearly noticed in the channel tunnel project and the payroll project. In the channel tunnel project, there is a large number of stakeholder groups working together in the project. However, no specific communication plans are defined for these stakeholder groups. On the other hand, in the payroll project, the communication plan for the stakeholders has been specifically defined that they must follow to build up effective stakeholder relationships.
- Summary– Consequences of delay and disruptions vary widely between government and non-government projects. While delay and disruptions are very much common in government projects due to lack of time and budget constraints, these factors can have massive consequences on non-government projects. This is because the non-government projects have strict deadlines and budget and any delay or disruption can cause massive financial losses.
- Evidence– Evidence can be found in the modes of operation in both the channel tunnel project and the payroll project that support all the arguments stated above.
- Summary– Project management tools are often used to manage conflicts and negotiate possible solutions. The use of the management tools is more extensive in the non-government projects as the non-government entities try to scale any project within certain limitations and requirements that are essential for project management.
- Evidence– Evidence can be found in the modes of operation in both the channel tunnel project and the payroll project that support all the arguments stated above.
Discussion and Conclusion
The project manager manages clashing and conflicting objective inside the different partners by applying the strategies for negotiation, for example, trading off techniques, working together techniques. In addition, the project manager needs to oversee relationship and legitimate communication with the partners. The postponement in the development of the Channel tunnel had decimating impacts and the project prompted a disappointment. There were cost invades of about US$1.6 billion. These cost overwhelms fused the time delay because of absence of legitimate planning and such mistaken planning lead to the expansion of about US$2.25 billion overheads cost. It is clarified that the project negotiation strategies has been represented and what ought to be the project negotiation techniques to be created. The communication ought to have the capacity to create and recognizing the conflicting and clashing the objectives and drivers which is valuable in creating and keeping up the associations with the diverse stakeholders engaged with the business too. The project management tools are fundamental in lessening and dispensing with the contentions around the vary projects which ought to be embraced. It is learnt from the discoveries that negotiations assume an imperative part in decreasing the contentions created for the acquirement ways to deal with be executed appropriately for the development and expansive infrastructure projects. The different strategies for the improvement and the support of association with the organization are the best possible recognizable proof of the driving components that may prompt the best possible communication with the stakeholder. The recognizable proof of the intended interest group must be distinguished and the correct work process must be kept up. The shirking of any type of communication hole is the most ideal path for the keeping up of the solid connections. The outcome of the deferrals and interruption in the planned exercises in a project may prompt the unsettling of the workers and may prompt the lessening of the efficiency of the organization. These means may considerably hamper the work process of the organization and disturb the notoriety of the organization in the market, in this manner prompting loss of position in the market.
Conflict is characteristic for people, groups, contractual connections and organizations. It is unavoidable in most development projects given their exceptional and complex nature and the nearness of different gatherings and multi-utilitarian groups. Conflict and its management inside the Channel tunnel project environment are evaluated. The fundamental discoveries demonstrate that consistence towards the prerequisites of value management frameworks of the tunnel building direction at the season of the examination was low. The development project environment is, in this way, a suitable environment to investigate conflicts and its management. The contrasts amongst conflicts and question are featured inside the paper. Hypothetical methodologies of conflict and management are talked about to mirror their elements in organizations. The discoveries likewise demonstrate that question, conflicts and structure disappointments are distinguished at the last phase of the project life cycle. The recurrence of each sort of conflict, question and building disappointment uncovers that most factors are fundamentally the same as in affect albeit some rank higher than others. The outcomes propose there is a low industry wide utilization of ÍST30 in development contracts. The discoveries show there is an unmistakable space for upgrades.
References
Anbari F.T., Giammalvo P., Jaffe P., Letavec C., and Merchant R. (Date Unknown) “The Chunnel Project”. PMI Case Studies in Project Management. https://www.pmi.org/~/media/PDF/Academic/case%20studies/Chunnel%20Project.ashx Visited …../…/…
Kerzner H. 2013.Project Management: A Systems Approach to Planning, Scheduling, and Control, 11th 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) 5th Edition. USA: Project Management Institute.
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